Red Violet (RDVT) Is a Great Choice for 'Trend' Investors, Here's Why

Core Insights - The article emphasizes the importance of identifying and sustaining trends in short-term investing, highlighting that confirming sound fundamentals and positive earnings estimates is crucial for maintaining momentum in stocks [1][4]. Group 1: Trend Analysis - The "Recent Price Strength" screen is a useful tool for investors to identify stocks that are currently trending upwards, supported by strong fundamentals and trading near their 52-week high [2]. - Red Violet, Inc. (RDVT) has shown a solid price increase of 28% over the past 12 weeks, indicating strong investor interest [3]. - RDVT has also experienced a price increase of 21.4% over the last four weeks, suggesting that the upward trend is still intact [4]. Group 2: Fundamental Strength - RDVT 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 short-term price movements [5]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [6]. Group 3: Investment Strategy - The article suggests that RDVT's price trend is unlikely to reverse soon, and encourages investors to explore other stocks that meet the "Recent Price Strength" criteria [7]. - It also mentions the importance of backtesting stock-picking strategies to ensure past profitability, which can be facilitated by tools like the Zacks Research Wizard [8].