5 Stocks With Strong Relative Price Strength to Start 2026

Core Insights - The U.S. stock market starts the new year with confidence, supported by easing inflation, a steady economy, and expectations of lower interest rates over time, alongside the influence of artificial intelligence [1] Economic Environment - Recent data shows mixed but encouraging signs, with factory activity performing better than expected while housing shows signs of cooling; earnings season is ramping up, focusing on company-level performance [2] - Trade headlines and tariff threats have introduced short-term pressures, but markets typically overlook near-term volatility to focus on future prospects [2] Investment Strategy - Relative price strength is crucial; stocks that are already outperforming the broader market tend to continue leading, making them attractive for investors [3] - Companies such as Micron Technology (MU), Hilltop Holdings (HTH), Casey's General Stores (CASY), Agnico Eagle Mines (AEM), and Dollar General (DG) are recommended for consideration due to their strong performance [3] Stock Selection Criteria - Investors should evaluate 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 showing strong relative price performance are more likely to yield significant returns [5] Performance Metrics - Stocks that have outperformed the S&P 500 over the past 1, 4, and 12 weeks, along with positive earnings estimate revisions for the current quarter, indicate potential for growth [6][9] - The screening parameters include relative price changes over different time frames and positive earnings estimate revisions, focusing on stocks with a Zacks Rank of 1 (Strong Buy) [8][10] Company Highlights - Micron Technology (MU): Expected earnings growth of 297.5% for fiscal 2026, with shares gaining 243% in a year and a market cap over $400 billion [11][12] - Hilltop Holdings (HTH): Projected EPS growth of 11.3% year-over-year for 2026, with shares up 24% in a year [12][13] - Casey's General Stores (CASY): Anticipated EPS growth of 18.8% for fiscal 2026, with shares increasing by 64% in a year [14][15] - Agnico Eagle Mines (AEM): Market cap nearly $100 billion, with shares more than doubling in a year and a projected earnings growth of 9.1% for 2026 [16][17] - Dollar General (DG): Market cap nearly $33 billion, with shares gaining 117% in a year and a projected earnings growth of 5.4% for 2026 [17][18]