Core Insights - The article emphasizes the importance of timing and sustainability in trend investing, highlighting that confirming the fundamentals is crucial for maintaining momentum in stock prices [1][2]. Group 1: Trend Analysis - Short-term capital losses can occur if trends reverse before exiting trades, making it essential to confirm sound fundamentals and positive earnings estimates to sustain stock momentum [2]. - The "Recent Price Strength" screen is a useful tool for identifying stocks in an uptrend, supported by strong fundamentals and trading near their 52-week high [3]. Group 2: Stock Example - Citizens Financial Services (CZFS) - Citizens Financial Services (CZFS) has shown a solid price increase of 24.4% over the past 12 weeks, indicating investor confidence in its potential upside [4]. - CZFS has maintained a price increase of 22% over the last four weeks, suggesting that the upward trend is still intact, and it is currently trading at 92.6% of its 52-week high-low range, indicating a potential breakout [5]. Group 3: Fundamental Strength - CZFS holds 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, which are critical for near-term price movements [6]. - The stock also has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [7]. Group 4: Additional Insights - The article suggests that CZFS may continue its price trend without reversal in the near future, and encourages exploring other stocks that meet the "Recent Price Strength" criteria [8]. - A successful stock-picking strategy should be backed by historical profitability, which can be tested using the Zacks Research Wizard [9].
Citizens Financial Services (CZFS) Is a Great Choice for 'Trend' Investors, Here's Why