Core Viewpoint - The article emphasizes the importance of confirming the sustainability of stock trends for successful short-term investing, highlighting the use of a specific screening strategy to identify stocks with strong fundamentals and positive price momentum. Group 1: Stock Screening Strategy - The "Recent Price Strength" screen is designed to identify stocks with sufficient fundamental strength to maintain their recent uptrend, focusing on those trading in the upper portion of their 52-week high-low range, indicating bullishness [3][4]. - Delcath Systems, Inc. (DCTH) is highlighted as a strong candidate for trend investing, having increased by 15.8% over the past 12 weeks, reflecting investor confidence [4]. - DCTH has also shown a price increase of 4.7% over the last four weeks, indicating that the upward trend is still intact [5]. Group 2: Fundamental Strength - DCTH 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 has an Average Broker Recommendation of 1 (Strong Buy), suggesting high optimism from the brokerage community regarding its near-term price performance [7]. Group 3: Market Insights - The article suggests that the price trend for DCTH is unlikely to reverse soon, and encourages investors to consider other stocks that meet the criteria of the "Recent Price Strength" screen [8]. - The Zacks Rank stock-rating system has a proven track record, with Zacks Rank 1 stocks generating an average annual return of +25% since 1988, indicating the effectiveness of this rating system in identifying potential winners [7].
Recent Price Trend in Delcath Systems (DCTH) is Your Friend, Here's Why