5 Stocks to Benefit From Relative Price Strength Trends

Market Overview - U.S. markets have continued their upward trend in 2024, building on the rally from 2023 despite recent economic turbulence and recession concerns [1] - The S&P 500 has increased over 16% year-to-date, driven by optimism from a decline in the annual inflation rate to its lowest since early 2021 [2] Economic Indicators - The decline in inflation is seen as positive ahead of expected Federal Reserve rate cuts, with a 25-basis point cut anticipated this month [2] - The Federal Reserve's dovish stance is attributed to steady declines in inflation, aligning with its 2% target [2] Stock Recommendations - Recommended stocks based on relative price strength include Limbach Holdings (LMB), Ubiquiti (UI), Royal Caribbean Cruises (RCL), DaVita (DVA), and Boot Barn Holdings (BOOT) [3] Stock Selection Strategy - Investors should focus on stocks outperforming their sectors in price, as they are more likely to provide significant returns [5] - Stocks that have shown better performance than the S&P 500 over the past 1 to 3 months and have solid fundamentals are ideal candidates [6] Earnings Estimates - Positive estimate revisions for upcoming earnings are crucial, as upward revisions typically lead to price gains [7] - Screening parameters include relative price changes over various time frames and positive current-quarter estimate revisions [8] Stock Profiles - Limbach Holdings (LMB): Market cap of $772.8 million, with a 38.1$12 billion, with a 22.2% growth estimate for fiscal 2025 and a 25.2% increase in shares over the past year [13][12] - Royal Caribbean Cruises (RCL): Market cap not specified, with a 71.1% year-over-year EPS growth estimate for 2024 and a 66% increase in shares over the past year [14][13] - DaVita (DVA): Expected EPS growth rate of 17.5% over the next 3 to 5 years, with a 60.2% increase in shares over the past year [15][16] - Boot Barn Holdings (BOOT): Market cap of $4.5 billion, with an 11.2% upward revision in earnings estimates and a 69.5% increase in shares over the past year [16][17]