Core Viewpoint - The article emphasizes the importance of identifying and maintaining trends in short-term investing, highlighting that sound fundamentals and positive earnings estimates are crucial for sustaining momentum in stock prices [1]. Group 1: Stock Screening and Selection - The "Recent Price Strength" screen is a unique short-term trading strategy that helps identify stocks with strong fundamentals capable of maintaining an uptrend [2]. - Intercorp Financial Services Inc. (IFS) is highlighted as a suitable candidate, having experienced a 15.7% price increase over the past 12 weeks, indicating investor confidence in its potential upside [3]. - A recent price increase of 4.5% over the last four weeks further confirms that the upward trend for IFS is still intact [4]. Group 2: Fundamental Strength Indicators - IFS 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 a +25% annual return since 1988, indicating the effectiveness of this ranking system [6]. - The Average Broker Recommendation for IFS is 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [6]. Group 3: Market Strategy and Tools - The article suggests that IFS may continue its price trend without reversal, and encourages exploring other stocks that meet the "Recent Price Strength" criteria [7]. - Investors are advised to utilize various Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [7]. - The Zacks Research Wizard is recommended for backtesting stock-picking strategies, providing tools to evaluate the effectiveness of past strategies [8].
Intercorp Financial Services (IFS) Is a Great Choice for 'Trend' Investors, Here's Why