Here's Why Momentum in Accel Entertainment (ACEL) Should Keep going

Core Viewpoint - The article emphasizes the importance of confirming the sustainability of stock trends for profitable short-term investing, highlighting the use of a specific screening strategy to identify stocks with strong fundamentals and positive price momentum [1][2][3]. 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]. - Accel Entertainment (ACEL) is highlighted as a suitable candidate that passed through this screening process, showing a solid price increase of 9.3% over the past 12 weeks, reflecting investor confidence [4]. - ACEL has also maintained a price increase of 5.3% over the last four weeks, indicating that the upward trend is still intact, and it is currently trading at 81.7% of its 52-week high-low range, suggesting a potential breakout [5]. Group 2: Fundamental Strength - ACEL carries 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 Zacks Rank system has a strong track record, with Zacks Rank 1 stocks generating an average annual return of +25% since 1988, indicating the effectiveness of this ranking system [7]. - The Average Broker Recommendation for ACEL is 1 (Strong Buy), reflecting high optimism from the brokerage community regarding the stock's near-term performance [7]. Group 3: Additional Insights - The article suggests that ACEL's price trend is unlikely to reverse soon, and there are other stocks that also meet the criteria of the "Recent Price Strength" screen, encouraging investors to explore these options [8]. - The key to successful stock-picking is ensuring that the strategy has produced profitable results in the past, which can be backtested using the Zacks Research Wizard [9].