As of Feb. 27, 2026, two stocks in the consumer staples sector could be flashing a real warning to investors who value momentum as a key criteria in their trading decisions.The RSI is a momentum indicator, which compares a stock’s strength on days when prices go up to its strength on days when prices go down. When compared to a stock’s price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered overbought when the RSI is above 70, according ...

As of Feb. 26, 2026, two stocks in the consumer discretionary sector could be flashing a real warning to investors who value momentum as a key criteria in their trading decisions.The RSI is a momentum indicator, which compares a stock’s strength on days when prices go up to its strength on days when prices go down. When compared to a stock’s price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered overbought when the RSI is above 70, acc ...

Market Overview - The market is experiencing a mixed message with some rotation observed this week, leading to a down day [2] - Manufacturing data has been strong recently, impacting expectations in the treasury markets, while the Atlanta Fed GDP now forecast came in lower than anticipated [3] - Despite market fluctuations, there is an ongoing rotation, particularly benefiting energy stocks [4] Verizon - Verizon has shown a strong performance year-to-date, up nearly 20%, indicating a potential turnaround after several years of sideways price action [5][6] - The stock has recently broken out of a range following a positive earnings announcement, showing strong momentum [8][9] - A trade example involves buying a 50-52.5 call spread while selling a 47 strike put, allowing for participation in further upside while providing an entry point if the stock tests lower levels [12][13] Dexcom - Dexcom has faced challenges due to the evolution of GLP1 but is now showing signs of breaking out after a period of downside [15][16] - The stock is currently trading around 71.80, with resistance at approximately 75, and potential for a breakout that could lead to a target range of 82-85 [18][21] - A trade example includes buying the stock and selling a June 85 call to capture upside momentum while collecting premium [23] Applied Materials - Applied Materials has increased over 40% this year, benefiting from a strong quarter in the semiconductor sector [24][25] - The stock is maintaining an upward trend, with significant support at 285 and resistance around 375, indicating potential for further gains [27][29] - A trade example involves a call fly strategy to capture a range up to 400, defining risk while allowing for upside participation [31][33]

Core Insights - The Zacks Premium service offers various tools for investors to enhance their stock market strategies and confidence in investing [1] Zacks Style Scores - Zacks Style Scores provide a unique rating system for stocks based on value, growth, and momentum characteristics, serving as complementary indicators to the Zacks Rank [2] - Stocks are rated from A to F, with A indicating the highest potential for outperforming the market [3] Value Score - The Value Style Score focuses on identifying undervalued stocks by analyzing financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - The Growth Style Score evaluates stocks based on projected and historical earnings, sales, and cash flow to identify those with sustainable growth potential [4] Momentum Score - The Momentum Style Score helps investors capitalize on price trends by analyzing short-term price changes and earnings estimate revisions [5] VGM Score - The VGM Score combines the Value, Growth, and Momentum Scores to identify stocks with the best overall characteristics for investment [6] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +23.86% since 1988 [7] - There can be over 800 stocks rated 1 or 2, making it essential to utilize Style Scores for better stock selection [8] Investment Strategy - For optimal returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, while 3 ranked stocks should also have A or B Scores for maximum upside potential [9] Stock Analysis: Apple (AAPL) - Apple primarily generates revenue from its iPhone and a growing Services portfolio, which includes cloud services and other offerings [11] - AAPL holds a Zacks Rank of 3 (Hold) with a VGM Score of B and a Growth Style Score of A, indicating a forecasted year-over-year earnings growth of 12.7% for the current fiscal year [12] - Recent upward revisions in earnings estimates by nine analysts and an increase in the Zacks Consensus Estimate to $8.41 per share further support AAPL as a strong candidate for growth investors [12]

Company Overview - Avnet (AVT) is one of the world's largest distributors of electronic components and computer products, serving a diverse customer base that includes original equipment manufacturers (OEMs), electronic manufacturing services (EMS) providers, original design manufacturers (ODMs), and value-added resellers (VARs) [11] Investment Ratings - Avnet holds a Zacks Rank of 3 (Hold) and has a VGM Score of A, indicating a solid overall rating [12] - The company has a Value Style Score of A, supported by attractive valuation metrics such as a forward P/E ratio of 14.09, making it appealing to value investors [12] Earnings Estimates - In the last 60 days, three analysts have revised their earnings estimates higher for fiscal 2026, with the Zacks Consensus Estimate increasing by $0.25 to $4.62 per share [12] - Avnet has demonstrated an average earnings surprise of +10.9%, indicating a positive trend in earnings performance [12] Investment Consideration - With a strong Zacks Rank and top-tier Value and VGM Style Scores, Avnet is recommended for investors looking for potential opportunities in the market [13]

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market engagement and confidence, including daily updates, research reports, and stock screens [1] Zacks Style Scores - Zacks Style Scores are indicators that rate stocks based on value, growth, and momentum, helping investors identify stocks likely to outperform the market in the short term [2] - Stocks are rated from A to F, with A indicating the highest potential for outperformance [3] Value Score - The Value Score identifies attractive stocks using ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, appealing to value investors seeking undervalued stocks [3] Growth Score - The Growth Score focuses on a company's future prospects and financial health, analyzing earnings, sales, and cash flow to find stocks with sustainable growth [4] Momentum Score - The Momentum Score helps investors capitalize on price trends, using factors like short-term price changes and earnings estimate revisions to identify optimal entry points [5] VGM Score - The VGM Score combines Value, Growth, and Momentum Scores, providing a comprehensive rating to help investors find stocks with the best overall potential [6] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investors, with 1 (Strong Buy) stocks historically yielding an average annual return of +23.86% since 1988, outperforming the S&P 500 [7] - There can be over 800 stocks rated 1 or 2, making it essential for investors to utilize Style Scores to narrow down choices [8] Stock Example: AT&T Inc. - AT&T Inc. is the second largest wireless service provider in North America, offering a wide range of communication and business solutions [11] - AT&T holds a 3 (Hold) Zacks Rank with a VGM Score of B and a Value Style Score of A, supported by a forward P/E ratio of 12.54, making it attractive for value investors [12] - Recent upward revisions in earnings estimates for fiscal 2026 have increased the Zacks Consensus Estimate by $0.04 to $2.29 per share, with an average earnings surprise of +3.8% [12] - With a solid Zacks Rank and strong Value and VGM Style Scores, AT&T is recommended for investors' consideration [13]

Company Overview - Arrow Electronics Inc. is one of the world's largest distributors of electronic components and enterprise computing products, offering a broad product range and value-added services to enhance customer competitiveness [11]. Investment Ratings - Arrow Electronics holds a 1 (Strong Buy) rating on the Zacks Rank, indicating strong potential for investment [12]. - The company has a VGM Score of A, reflecting its overall attractiveness based on value, growth, and momentum [12]. Value Metrics - Arrow Electronics has a Value Style Score of B, supported by a forward P/E ratio of 11.93, making it appealing to value investors [12]. Earnings Estimates - In the last 60 days, three analysts have revised their earnings estimates for Arrow Electronics upwards, with the Zacks Consensus Estimate increasing by $1.22 to $13.08 per share for fiscal 2026 [12]. - The company has demonstrated an average earnings surprise of +17.9%, indicating strong performance relative to expectations [12]. Conclusion - With a solid Zacks Rank and top-tier Value and VGM Style Scores, Arrow Electronics is positioned as a strong candidate for investors [13].

Group 1 - As of February 11, 2026, two stocks in the consumer discretionary sector are signaling potential warnings for momentum-focused investors [1] - The Relative Strength Index (RSI) is highlighted as a key momentum indicator, with a threshold of 70 indicating that a stock may be overbought [2] - The two identified stocks are Hasbro Inc (NASDAQ:HAS) and Marriott International Inc (NASDAQ:MAR) [3]

Core Insights - Two stocks in the information technology sector are signaling potential warnings for momentum-focused investors as of February 4, 2026 [1] Group 1: Momentum Indicators - The Relative Strength Index (RSI) is a key momentum indicator that compares a stock's performance on days with price increases to days with price decreases [2] - An asset is generally considered overbought when the RSI exceeds 70, indicating potential caution for traders [2] Group 2: Overbought Stocks - SanDisk Corp (NASDAQ:SNDK) is identified as one of the major overbought stocks in the information technology sector [3] - Teradyne Inc (NASDAQ:TER) is also listed among the overbought players in this sector [3]

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