American Software(AMSWA) ZACKS·2024-09-02 13:50Core Viewpoint - The article emphasizes the importance of confirming the sustainability of a trend in short-term investing, highlighting that a solid price trend and strong fundamentals are crucial for successful trades [1]. Group 1: Stock Performance - American Software (AMSWA) has shown a solid price increase of 25% over the past 12 weeks, indicating investor confidence in its potential upside [2]. - The stock has maintained a price increase of 6.6% over the last four weeks, suggesting that the upward trend is still intact [2]. Group 2: Technical Indicators - AMSWA is currently trading at 80.3% of its 52-week high-low range, indicating it may be on the verge of a breakout [3]. - The stock carries a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [3]. Group 3: Analyst Recommendations - The Average Broker Recommendation for AMSWA is 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [3]. - Historically, Zacks Rank 1 stocks have generated an average annual return of +25% since 1988, showcasing the effectiveness of this ranking system [3]. Group 4: Investment Strategy - The article suggests that investors should consider other stocks that pass the "Recent Price Strength" screen, which identifies stocks with strong fundamentals and price trends [4]. - The Zacks Research Wizard can assist investors in backtesting stock-picking strategies to ensure they have produced profitable results in the past [4].