What Makes Accel Entertainment (ACEL) a Good Fit for 'Trend Investing'

Core Viewpoint - The article emphasizes the importance of identifying and sustaining trends in short-term investing, highlighting that confirming strong fundamentals and positive earnings estimates is crucial for maintaining momentum in stocks [1]. Group 1: Trend Analysis - The "Recent Price Strength" screen is a tool designed to identify stocks with sufficient fundamental strength to sustain their recent upward trends, focusing on those trading in the upper portion of their 52-week high-low range, indicating bullishness [2]. - Accel Entertainment (ACEL) has shown a solid price increase of 7.4% over the past 12 weeks, reflecting investor confidence in its potential upside [3]. - A price increase of 5% over the last four weeks indicates that ACEL's price trend remains intact, and it is currently trading at 84% of its 52-week high-low range, suggesting a potential breakout [4]. Group 2: Fundamental Strength - ACEL 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 [5]. - The Zacks Rank system has a strong track record, with Zacks Rank 1 stocks averaging an annual return of +25% since 1988, indicating the effectiveness of this ranking system [6]. - The Average Broker Recommendation for ACEL is 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [6]. Group 3: Investment Strategy - In addition to ACEL, there are multiple stocks that meet the criteria of the "Recent Price Strength" screen, suggesting further investment opportunities [7]. - The article suggests that successful stock-picking strategies should have a history of profitability, which can be backtested using the Zacks Research Wizard [8].