Core Viewpoint - The sustainability of a trend is crucial for successful short-term investing, and confirming the fundamentals behind a stock's momentum is essential for profitability [1][2]. Group 1: Trend Analysis - Timing entries into a trend significantly impacts investment success, as trends can reverse unexpectedly, leading to potential losses [1][2]. - A predefined "Recent Price Strength" screen can help identify stocks that are currently trending upward, supported by strong fundamentals and trading near their 52-week high [3]. Group 2: Company Spotlight - Epsilon Energy Ltd. (EPSN) - Epsilon Energy Ltd. has shown a solid price increase of 21.4% over the past 12 weeks, indicating strong investor interest [4]. - The stock has also increased by 11.3% in the last four weeks, suggesting that the upward trend is still intact [5]. - Currently, EPSN is trading at 95.4% of its 52-week high-low range, indicating a potential breakout [5]. Group 3: Fundamental Strength - EPSN 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 [6]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term performance [7]. - The Zacks Rank system has a strong historical performance, with Zacks Rank 1 stocks averaging a +25% annual return since 1988 [7]. Group 4: Investment Strategy - In addition to EPSN, there are other stocks that meet the criteria of the "Recent Price Strength" screen, providing additional investment opportunities [8]. - The effectiveness of stock-picking strategies can be backtested using tools like the Zacks Research Wizard, which offers insights into successful strategies [9].
Here's Why Momentum in Epsilon Energy (EPSN) Should Keep going