5 Relative Price Strength Stocks Compelling Enough to Buy

Economic Overview - The U.S. economy has demonstrated significant strength in 2023, highlighted by the S&P 500 Index reaching an all-time high, with 12 out of 13 weeks showing positive performance [1] - The Federal Reserve's decision to halt interest rate hikes in July 2023 contributed to a 23.9% rally in the S&P 500 Index last year [1] - An anticipated interest rate reduction by the Fed in 2024 is expected to positively impact stock markets, as lower risk-free rates will decrease discount rates, enhancing the net present value of equity investments [1] Investment Strategy - Investors are focusing on relative price performance to identify stocks with potential for accelerated returns [2] - A stock's potential for considerable returns is primarily assessed through its earnings and valuation ratios, alongside its performance relative to peers or industry averages [3] - Stocks that outperform their respective industries or benchmarks should be prioritized for inclusion in investment portfolios [3] Stock Screening Parameters - Stocks must show a relative price change greater than 0 over the last 12 weeks, 4 weeks, and 1 week to be considered for investment [5] - Positive current-quarter estimate revisions over the last four weeks are also a criterion for selection [5] - Only stocks with a Zacks Rank of 1 (Strong Buy) are included, which have historically outperformed the S&P 500 [5] Selected Stocks - AZZ Inc. (AZZ): Expected EPS growth rate of 14% over three to five years, with a market cap of $1.6 billion and a 50.7% increase in share price over the past year [6] - Universal Technical Institute, Inc. (UTI): Anticipated EPS growth of 376.9% year-over-year, with shares rising 104.4% in a year [7] - Acuity Brands, Inc. (AYI): Expected EPS growth of 5.3% year-over-year, with a 29.2% increase in share price over the past year [8] - PACCAR Inc. (PCAR): Anticipated EPS growth of 6.6% year-over-year, with shares increasing by 40.3% in a year [8] - The Progressive Corporation (PGR): Expected EPS growth of 40.3% year-over-year, with a 32.5% increase in share price over the past year [9]