Core Insights - The stock market experienced a significant increase as Wall Street enters a crucial week for fourth-quarter earnings, with major tech companies like Apple, Meta, Microsoft, and Tesla set to report their quarterly results [1] Group 1: Market Outlook - The long-term outlook for stocks is expected to remain bullish through 2026, driven by improving earnings across all sectors, marking the first time since 2018 that all 16 Zacks sectors are projected to expand their earnings [2] - Investors are encouraged to continue purchasing stocks in early 2026, focusing on those that have already performed well in 2025 rather than on underperforming stocks [3] Group 2: Stock Screening Strategy - A screening method using the Research Wizard identifies Zacks Rank 1 (Strong Buy) stocks, narrowing down to those with upward price momentum and trading within 20% of their 52-week highs [5][6] - The screening criteria include a PEG ratio of less than or equal to 1, a Price/Sales ratio of less than or equal to 3, and a percentage change in price over the last 12 weeks [10] Group 3: Company Spotlight - Expedia Group, Inc. (EXPE) - Expedia is highlighted as a strong long-term growth stock, benefiting from a booming travel market, with a reported 7% growth in 2024 and an average revenue growth of 37% from 2021 to 2023 [11] - The company is projected to grow its adjusted earnings by 27% in 2025 and 20% in 2026, increasing from $12.11 in 2024 to $18.39 in 2026, with revenue expected to reach $15.56 billion in FY25 and FY26 [14] - EXPE stock has increased by 55% over the past 12 months, with a notable 434% rise over the past 15 years, and a recent pullback of 10% presents a buying opportunity [15]
Best "Strong Buy" Momentum Stocks to Buy in February