Core Viewpoint - The article emphasizes the importance of confirming the sustainability of stock trends for successful 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 upward price trends, focusing on those trading in the upper portion of their 52-week high-low range [3]. - InfuSystems Holdings, Inc. (INFU) is highlighted as a strong candidate for trend investing, having experienced a price increase of 78.6% over the past 12 weeks [4]. - INFU has maintained a price increase of 2% over the last four weeks, indicating that its upward trend is still intact [5]. Group 2: Fundamental Strength - INFU holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, which are critical for near-term price movements [6]. - The stock also has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [7]. - The historical performance of Zacks Rank 1 stocks shows an average annual return of +25% since 1988, underscoring the effectiveness of this ranking system [7]. Group 3: Additional Insights - The article suggests that INFU's price trend is unlikely to reverse soon, and encourages investors to explore other stocks that meet the criteria of the "Recent Price Strength" screen [8]. - The Zacks Research Wizard is mentioned as a tool for backtesting stock-picking strategies, which can help investors identify successful investment opportunities [9].
Here's Why Momentum in InfuSystems Holdings (INFU) Should Keep going