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5 Best Stocks With Relative Price Strength to Buy Right Now
ZACKS· 2025-08-08 14:15
Core Insights - U.S. stocks have experienced volatility due to tariff news and disappointing job growth, leading to a significant drop in the S&P 500 [1] - Despite the pullback, investor sentiment remains positive, with ongoing negotiations and expectations of lower interest rates supporting a potential recovery [2] Stock Recommendations - Recommended stocks based on relative price strength include Barrick Mining Corporation, LendingTree, Mercury General Corporation, Rigel Pharmaceuticals, and Levi Strauss & Co. [3] Relative Price Strength Strategy - The potential for considerable returns in stocks is primarily determined by earnings and valuation ratios, alongside their price performance relative to peers [4] - Stocks outperforming their industries or benchmarks should be included in investment portfolios for higher return potential [5] - Stocks that have outperformed the S&P 500 over 1 to 3 months and show solid fundamentals are ideal candidates for investment [6] Analyst Optimism - Positive estimate revisions for upcoming earnings are crucial, as upward revisions typically lead to price gains [7] Screening Parameters - Stocks must show positive relative price changes over 12 weeks, 4 weeks, and 1 week, alongside positive current-quarter estimate revisions [8] - Stocks like Barrick Mining, LendingTree, and Rigel Pharmaceuticals have outperformed the S&P 500 and show strong earnings revisions [8] Company Highlights - **Barrick Mining Corporation**: Expected EPS growth rate of 33.5%, with a 55.6% year-over-year growth estimate for 2025 [10][11] - **LendingTree**: 45.1% growth estimate for 2025, with a trailing four-quarter earnings surprise of approximately 70.8% [11][12] - **Mercury General Corporation**: 1,000% surge in earnings estimate over the past 60 days, with a trailing earnings surprise of about 166% [13][14] - **Rigel Pharmaceuticals**: 170.7% growth estimate for 2025, with an average earnings surprise of 1,840.5% [15][16] - **Levi Strauss & Co.**: 4% year-over-year growth estimate for fiscal 2025, with a 5.7% increase in earnings estimate over the past 60 days [17]
Want Outperformance? These 5 Stocks Show Relative Strength
ZACKS· 2025-06-05 18:55
Market Overview - Wall Street experienced a significant rebound in May, driven by optimism surrounding a potential U.S.-China trade deal, a delay in tariffs on the European Union, and positive developments in broader trade negotiations [1] - The cooling inflation environment, with the core PCE rising only 0.1% in April, is contributing to a more supportive monetary stance from the Federal Reserve, fostering bullish market sentiment [2] Investment Strategy - Investors are encouraged to focus on relative price strength as a strategy to identify outperforming stocks during market uptrends [3][4] - Stocks that have shown better performance than their peers or the industry average, despite strong earnings growth or valuation multiples, should be prioritized [5] Stock Recommendations - Five stocks identified with strong relative price performance over 1, 4, and 12-week periods include: - OppFi Inc. (OPFI) with a market cap of $1.1 billion and a 326% increase in shares over the past year [11][12] - Allient Inc. (ALNT) with a market cap of $534.5 million and a 25% increase in shares over the past year [13][14] - Pagaya Technologies Ltd. (PGY) with a market cap of $1.3 billion and a 43.3% increase in shares over the past year [15][16] - Great Lakes Dredge & Dock Corporation (GLDD) with a market cap of $789.3 million and a 26% increase in shares over the past year [17][18] - NetEase, Inc. (NTES) with a market cap of almost $80 billion and a 35% increase in shares over the past year [18][19] Earnings Estimates - Positive revisions in earnings estimates for Q1 have been noted for all five recommended stocks, indicating potential for further price gains [9][12][14][16][18]
Relative Price Strength: 4 Stocks Defying Market Weakness
ZACKS· 2025-05-05 12:05
Core Viewpoint - The U.S. stock market is experiencing volatility, with the S&P 500 declining 0.8% in April, marking its third consecutive monthly drop, while GDP shrank 0.3%, the first decline since early 2022. However, strong consumer spending and a stable job market indicate underlying confidence in the economy [1]. Group 1: Investment Strategy - In uncertain market conditions, a relative price strength strategy can help investors identify stocks that outperform their peers, thus staying aligned with market momentum [2]. - Stocks that show better performance than their industry or benchmark should be included in investment portfolios, as they are more likely to yield significant returns [4]. - It is essential to assess whether a stock has upside potential, particularly those that have outperformed the S&P 500 over the past 1 to 3 months and possess solid fundamentals [5]. Group 2: Screening Parameters - The screening criteria for identifying potential stocks include positive relative price changes over 12 weeks, 4 weeks, and 1 week, as well as positive current-quarter estimate revisions [7]. - Stocks must have a Zacks Rank of 1 (Strong Buy), a current price of at least $5, and an average 20-day trading volume of at least 50,000 to ensure adequate liquidity [8]. Group 3: Featured Stocks - **Kaiser Aluminum Corporation (KALU)**: Expected earnings growth of 66.1% for 2025, with a market cap of $1.1 billion. The Zacks Consensus Estimate for 2025 earnings has increased by 35.4% over the past 30 days, although shares have decreased by 29.3% in the past year [10][11]. - **Sprouts Farmers Market, Inc. (SFM)**: Anticipated earnings growth of 30.7% for 2025, with shares rising 131.9% in the past year. The company has consistently beaten earnings estimates, with a trailing four-quarter earnings surprise of approximately 16.5% [12][13]. - **BGC Group, Inc. (BGC)**: Projected EPS growth rate of 23.2% year-over-year for 2025, with a favorable expected growth rate of 24.7% over the next three to five years compared to the industry average of 13.8%. Shares have gained 7% in the past year [14][15]. - **ODDITY Tech Ltd. (ODD)**: Expected earnings growth of 3.1% for 2025, with shares increasing by 95.8% in the past year. The company has a trailing four-quarter earnings surprise of about 32.8% [16][17].
Volatile Markets? Try These Relative Price Strength Stocks
ZACKS· 2025-04-16 14:10
Core Viewpoint - The stock market is experiencing volatility due to U.S. tariffs and global trade tensions, with the S&P 500 down over 8% for the year [1] Group 1: Market Conditions - U.S. tariffs on imports from major partners like China have reached as high as 145%, while China has imposed 84% duties on U.S. products [1] - Ongoing inflation pressures and concerns about a potential recession or stagflation are contributing to market uncertainty [1] Group 2: Investment Strategy - Investors are encouraged to focus on relative price strength, identifying stocks that outperform their peers even in volatile conditions [2] - Stocks that have shown better performance than the S&P 500 over the last 1 to 3 months, combined with solid fundamentals, indicate potential for growth [6] Group 3: Recommended Stocks - IHS Holding Limited (IHS) is highlighted for its strong growth potential, with a Zacks Consensus Estimate indicating 114.7% growth for 2025 earnings and a market cap of $1.6 billion [10][11] - Atlanticus Holdings Corporation (ATLC) is noted for a 29.4% growth estimate for 2025 earnings and a significant share price increase of 110.5% over the past year [12][13] - REX American Resources Corporation (REX) has a market cap of $676.4 million and a 15.7% upward revision in earnings estimates for fiscal 2026, despite a 31.3% decline in share price over the past year [14][15] - Fresenius Medical Care AG (FMS) is recognized for a 27.1% growth estimate for 2025 earnings and a share price increase of 31.8% in the last year [16][17] Group 4: Screening Parameters - Stocks are screened based on relative price changes over 12 weeks, 4 weeks, and 1 week, as well as positive current-quarter estimate revisions [8] - Only Zacks Rank 1 (Strong Buy) stocks are considered, which have historically outperformed the S&P 500 [9]