Market Overview - The U.S. stock market continued its rally into early 2025, following a strong performance in 2024, despite concerns over trade policies and inflation [1] - Investors remained optimistic due to solid fourth-quarter earnings, although mixed economic data and a hawkish Fed stance on interest rate cuts added uncertainty [1] - Geopolitical tensions in the Middle East and Europe further clouded the market outlook [1] Investment Strategy - Relative price strength is highlighted as a valuable strategy for investors, focusing on stocks that outperform the broader market to sustain momentum [2] - Stocks like EnerSys (ENS), Pacira BioSciences (PCRX), Celestica Inc. (CLS), and Enova International (ENVA) are recommended based on their relative price strength [2] Screening Parameters - Stocks are screened based on relative price changes over 12 weeks, 4 weeks, and 1 week, with a focus on those outperforming the S&P 500 [7] - Positive current-quarter estimate revisions over the last four weeks are also considered to identify stocks with potential upside [7][6] Company Highlights - EnerSys (ENS): Expected EPS growth rate of 18% for three to five years, compared to the industry's 12.3%. The Zacks Consensus Estimate for fiscal 2025 indicates 18.7% year-over-year growth, with shares gaining 12.6% in a year [10][11] - Pacira BioSciences (PCRX): Market capitalization of 3 billion, with a Zacks Consensus Estimate for 2025 earnings indicating 23.8% growth. Shares have surged 98.9% in a year [16][17]
Building a Position With 4 Top Relative Price Strength Stocks