Market Overview - The U.S. stock market has reached record highs following the Fed's first rate cut of the year, reducing rates by 25 basis points to 4-4.25% [1] - The Fed's indication of potential further cuts through 2026 and 2027 has bolstered investor confidence in supportive monetary policy despite slowing growth [1] Investment Strategy - Relative price strength is emphasized as a strategy to identify market leaders likely to outperform [2] - Stocks such as Tutor Perini Corporation (TPC), RF Industries, Ltd. (RFIL), and A-Mark Precious Metals, Inc. (AMRK) are recommended based on their relative price strength [2] Stock Performance Metrics - A stock's potential for returns is primarily assessed through earnings and valuation ratios, alongside its price performance relative to peers [3] - Stocks outperforming their industries or benchmarks should be included in investment portfolios for higher return potential [4] Earnings Estimates and Analyst Sentiment - Stocks that have outperformed the S&P 500 over the past 1 to 3 months and show solid fundamentals are considered optimal for investment [5] - Positive revisions in earnings estimates are crucial, as upward revisions typically lead to price gains [6] Screening Parameters - Stocks must show positive relative price changes over 12 weeks, 4 weeks, and 1 week, alongside positive current-quarter estimate revisions [7] - Only Zacks Rank 1 (Strong Buy) stocks, which have historically outperformed the S&P 500, are included in the screening process [8] Company-Specific Insights - Tutor Perini Corporation (TPC) has a 2025 earnings estimate indicating 220.8% growth, with shares up 153.1% over the past year [9][11] - RF Industries (RFIL) projects a 422.2% growth in 2025 earnings, with shares surging 132.2% in a year [9][13] - A-Mark Precious Metals (AMRK) has a 2026 earnings estimate showing 58.1% year-over-year growth, although shares have declined by 40.3% in the past year [9][15]

Core Insights - Wall Street has experienced a significant rally since early 2023, with the S&P 500 reaching record highs in 2025, driven by weak August payroll data that increased expectations for a Federal Reserve rate cut [1][2] - The easing inflation pressures and cooling employment data provide the Fed with the flexibility to act without raising recession fears, leading to a bullish market environment [2] - Investors are encouraged to focus on stocks with strong relative price strength, which are likely to continue outperforming during the ongoing bull run [2][4] Stock Recommendations - Recommended stocks based on relative price strength include Kimball Electronics, REV Group, Evercore, Visteon, and Zumiez, all of which show rising earnings outlooks and market-beating performance trends [3][10] - Kimball Electronics has a market capitalization of $725.6 million and has seen a 74.6% increase in shares over the past year, with a 20.2% upward revision in fiscal 2026 earnings estimates [11][12] - REV Group, with a market cap of $3 billion, has experienced a 138.1% increase in shares over the past year and a projected 60.4% growth in 2025 earnings [13][14] - Evercore, a global independent investment banking advisory firm, has a market cap of $3.5 billion and has seen a 43.6% increase in shares, with a projected 34.5% growth in 2025 earnings [15][16] - Visteon, specializing in automotive cockpit electronics, has a market cap of $3.5 billion and a 39.9% increase in shares, with a 14.5% upward revision in earnings estimates [16][17] - Zumiez, a global lifestyle retailer, has a market cap of $360 million, but its shares have decreased by 9.2% over the past year despite a projected 566.7% growth in fiscal 2026 earnings [18][17] Screening Parameters - Stocks are screened based on relative price changes over 1, 4, and 12 weeks, as well as positive current-quarter estimate revisions [8][9] - Only stocks with a Zacks Rank of 1 (Strong Buy) that have historically outperformed the S&P 500 are considered for investment [9]

Market Overview - The market received a boost from Fed Chair Jerome Powell's Jackson Hole speech, indicating potential rate cuts as early as September, leading to a 1.5% rally in the S&P 500 [1][10] - Powell's acknowledgment of persistent inflation, coupled with a focus on job growth, reassured investors about the Fed's readiness to intervene if economic momentum slows [1][10] - By the end of the week, traders raised their bets on a September rate cut, with odds exceeding 90% [1] Investor Sentiment - Investors interpreted Powell's remarks as a sign that tariff-related inflation is viewed as temporary, not a long-term concern, which has fueled optimism in equities [2][10] - With falling treasury yields and a returning risk appetite, equities are expected to continue gaining in the upcoming weeks [2] Stock Recommendations - Recommended stocks based on relative price strength include Pediatrix Medical Group (MD), Enova International (ENVA), Primoris Services Corporation (PRIM), SkyWest, Inc. (SKYW), and Agnico Eagle Mines Limited (AEM) [3][10] Stock Analysis Strategy - Investors should assess 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 outperforming their sectors in price should be prioritized for potential returns [5] - Stocks that have outperformed the S&P 500 over the past 1 to 3 months and have solid fundamentals are ideal candidates for investment [6] Earnings Estimates - Positive estimate revisions for upcoming earnings are crucial; upward revisions typically lead to additional price gains [7] - Screening parameters include relative price changes over various time frames and positive current-quarter estimate revisions [8] Zacks Rank and Stock Performance - Only Zacks Rank 1 (Strong Buy) stocks, which have historically outperformed the S&P 500, are considered for investment [9] - Specific stocks highlighted include: - **Pediatrix Medical Group (MD)**: Market cap of $1.5 billion, 51.8% share price increase over the past year, and a 9.3% upward revision in earnings estimates [11][12] - **Enova International (ENVA)**: Market cap of $2.9 billion, 37.4% share price increase, and a 32.4% growth estimate for 2025 earnings [13][14] - **Primoris Services Corporation (PRIM)**: Market cap not specified, 107.7% share price increase, and a 20.7% growth estimate for 2025 earnings [15] - **SkyWest, Inc. (SKYW)**: Market cap of $4.8 billion, 60.4% share price increase, and a 28.1% growth estimate for 2025 earnings [16] - **Agnico Eagle Mines Limited (AEM)**: Market cap of $69 billion, 66% share price increase, and a 62.2% growth estimate for 2025 earnings [17][18]

Market Overview - Wall Street's winning streak continues, driven by positive trade news and strong economic data, with the S&P 500 reaching a record high following a significant trade deal between the United States and Japan, which lowers tariffs and opens up $550 billion in new investments [1] - Retail sales exceeded expectations in June, and jobless claims decreased, indicating a robust labor market and steady consumer spending despite ongoing tariff concerns [1][9] Trade Negotiations and Economic Environment - Progress in trade negotiations with the U.K., Indonesia, and the Philippines, along with positive signals from China and the EU, creates an encouraging backdrop for equities [2] - The current earnings season is contributing to market momentum, suggesting that focusing on relative price strength can help investors identify leading stocks [2] Stock Recommendations - Recommended stocks based on relative price strength include Western Digital Corporation (WDC), Flowserve Corporation (FLS), OPENLANE, Inc. (KAR), AngloGold Ashanti plc (AU), and Jabil Inc. (JBL) [3][9] - These stocks are outperforming their peers, supported by strong relative price strength metrics [9] Relative Price Strength Strategy - Earnings growth and valuation multiples are crucial for assessing a stock's potential returns and its performance relative to peers [4] - Investors are advised to avoid underperforming stocks and focus on those that are outperforming their respective industries or benchmarks [5] 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] - Stocks that have shown better performance than the S&P 500 over the last 1 to 3 months and have solid fundamentals are considered for investment [6] Company Profiles - **Western Digital Corporation (WDC)**: Market cap of $23.4 billion, expected EPS growth of 2,465% year-over-year for fiscal 2025, with a trailing four-quarter earnings surprise of approximately 7.3% [11][12] - **Flowserve Corporation (FLS)**: Market cap not specified, expected EPS growth rate of 14.2% over three to five years, with a 22.1% year-over-year growth estimate for 2025 [13][14] - **OPENLANE, Inc. (KAR)**: Market cap of $2.7 billion, expected EPS growth of 17.7% year-over-year for 2025, shares up 44% in a year [14][15] - **AngloGold Ashanti plc (AU)**: Market cap of $21.8 billion, expected EPS growth of 125.8% year-over-year for 2025, shares up 89% in a year [16] - **Jabil Inc. (JBL)**: Market cap not specified, expected EPS growth rate of 16.6% over three to five years, with a 10.6% year-over-year growth estimate for 2025 [17][18]

Market Overview - The S&P 500 rose by 5% in June, driven by optimism regarding trade deals, a ceasefire in the Middle East, and potential interest rate cuts in 2025 [1] - Positive economic indicators, including strong manufacturing data, increased factory orders, and a favorable jobs report for June, alleviated recession fears [1] July Market Conditions - As July begins, the job market remains robust, inflation is cooling, and companies are set to announce earnings [2] - Trade disagreements may cause short-term market fluctuations, but new trade agreements could provide additional momentum [2] Stock Recommendations - Recommended stocks based on relative price strength include Dell Technologies Inc. (DELL), Jabil Inc. (JBL), Phibro Animal Health Corporation (PAHC), and Hudbay Minerals Inc. (HBM) [3][9] Relative Price Strength Strategy - Investors should assess stocks based on earnings growth and valuation multiples, while also considering their performance relative to industry peers [4] - Underperforming stocks should be avoided, while those outperforming their sectors in price should be prioritized for potential returns [5] Investment Criteria - Stocks that have outperformed the S&P 500 over the past 1, 4, and 12 weeks, along with positive earnings estimate revisions, indicate growth potential [6][8] - A focus on analyst optimism regarding upcoming earnings is crucial, as upward revisions can lead to price gains [7] Screening Parameters - Stocks must show positive relative price changes over 1, 4, and 12 weeks, and have positive current-quarter estimate revisions [8] - Stocks must have a minimum price of $5 and an average 20-day volume of at least 50,000 for adequate liquidity [10] Company Profiles - **Dell Technologies Inc. (DELL)**: Market cap of $84.7 billion, expected EPS growth of 16% year-over-year for fiscal 2026, with a trailing earnings surprise of 2.3% [11][12] - **Jabil Inc. (JBL)**: Expected EPS growth rate of 16.6% over three to five years, with a 102% share price increase in the past year [13][14] - **Phibro Animal Health Corporation (PAHC)**: Market cap of $1.2 billion, expected EPS growth of 71.4% for fiscal 2025, with a 75.7% share price increase in the past year [14][15] - **Hudbay Minerals Inc. (HBM)**: Expected EPS growth rate of 51.7% over three to five years, with a 43.8% year-over-year growth estimate for 2025 and a 17.6% share price increase in the past year [16][17]

Market Overview - The U.S. stock market remains strong despite concerns over credit downgrade and fiscal outlook, with major indexes finishing higher due to optimism from U.S.-China trade talks [1] - A temporary 90-day pause in tariffs and an agreement to lower mutual tariffs to 10% have positively influenced market sentiment [1] - The S&P 500 has closed higher in 16 of the past 19 trading days, indicating a strong performance [1] Inflation and Economic Indicators - Easing inflation indicators, with both CPI and PPI showing signs of cooling, have contributed to market buoyancy [2] - Despite Moody's downgrade raising long-term concerns about debt, the focus remains on near-term growth momentum and improving global trade relations [2] Investment Strategy - A relative price strength strategy is recommended, focusing on stocks that outperform the broader market [2][4] - Stocks that are underperforming on fundamental factors should be avoided, while those outperforming their sectors in price should be selected for better returns [5] Stock Recommendations - Recommended stocks based on relative price strength include Great Lakes Dredge & Dock Corporation (GLDD), Sprouts Farmers Market, Inc. (SFM), EverQuote, Inc. (EVER), and Encompass Health Corp. (EHC) [3] Screening Parameters - Stocks should be screened based on relative price change over 12 weeks, 4 weeks, and 1 week, as well as positive current-quarter estimate revisions [8] - Only Zacks Rank 1 (Strong Buy) stocks that have historically outperformed the S&P 500 are considered [9] Company Highlights - **Great Lakes Dredge & Dock Corporation (GLDD)**: Market cap of $760.8 million, with a 34.8% upward revision in 2025 earnings estimates and a 15.6% increase in shares over the past year [11][10] - **Sprouts Farmers Market, Inc. (SFM)**: Unique grocery model with a market cap of $1.5 billion, showing a 35.5% growth in 2025 earnings estimates and a 115.4% increase in shares over the past year [12][13] - **EverQuote, Inc. (EVER)**: Market cap of $867 million, with a 33% growth in 2025 earnings estimates, but shares have decreased by 3.5% in the past year [13][14] - **Encompass Health Corp. (EHC)**: Market cap not specified, with a 13.1% growth in 2025 earnings estimates and a 41.2% increase in shares over the past year [15]