5 Stocks Scoring High on Relative Price Strength Metrics

Market Overview - The market received a boost from Fed Chair Jerome Powell's Jackson Hole speech, indicating potential rate cuts as early as September, leading to a 1.5% rally in the S&P 500 [1][10] - Powell's acknowledgment of persistent inflation, coupled with a focus on job growth, reassured investors about the Fed's readiness to intervene if economic momentum slows [1][10] - By the end of the week, traders raised their bets on a September rate cut, with odds exceeding 90% [1] Investor Sentiment - Investors interpreted Powell's remarks as a sign that tariff-related inflation is viewed as temporary, not a long-term concern, which has fueled optimism in equities [2][10] - With falling treasury yields and a returning risk appetite, equities are expected to continue gaining in the upcoming weeks [2] Stock Recommendations - Recommended stocks based on relative price strength include Pediatrix Medical Group (MD), Enova International (ENVA), Primoris Services Corporation (PRIM), SkyWest, Inc. (SKYW), and Agnico Eagle Mines Limited (AEM) [3][10] Stock Analysis Strategy - Investors should assess stocks based on earnings growth and valuation multiples, while also considering their performance relative to industry peers or benchmarks [4] - Underperforming stocks should be avoided, while those outperforming their sectors in price should be prioritized for potential returns [5] - Stocks that have outperformed the S&P 500 over the past 1 to 3 months and have solid fundamentals are ideal candidates for investment [6] Earnings Estimates - Positive estimate revisions for upcoming earnings are crucial; upward revisions typically lead to additional price gains [7] - Screening parameters include relative price changes over various time frames and positive current-quarter estimate revisions [8] Zacks Rank and Stock Performance - Only Zacks Rank 1 (Strong Buy) stocks, which have historically outperformed the S&P 500, are considered for investment [9] - Specific stocks highlighted include: - Pediatrix Medical Group (MD): Market cap of $1.5 billion, 51.8% share price increase over the past year, and a 9.3% upward revision in earnings estimates [11][12] - Enova International (ENVA): Market cap of $2.9 billion, 37.4% share price increase, and a 32.4% growth estimate for 2025 earnings [13][14] - Primoris Services Corporation (PRIM): Market cap not specified, 107.7% share price increase, and a 20.7% growth estimate for 2025 earnings [15] - SkyWest, Inc. (SKYW): Market cap of $4.8 billion, 60.4% share price increase, and a 28.1% growth estimate for 2025 earnings [16] - Agnico Eagle Mines Limited (AEM): Market cap of $69 billion, 66% share price increase, and a 62.2% growth estimate for 2025 earnings [17][18]