Core Insights - Broader equity markets are reaching record highs despite a government shutdown and inflation concerns, with investors expecting the shutdown to be brief and anticipating interest rate cuts by the Fed in 2025 due to weak labor market conditions [1][8] Investment Strategies - Investors are looking to capitalize on the upward movement of stocks by creating portfolios that ensure healthy returns, although the abundance of stocks makes this challenging [2] - Following broker advice is suggested as a strategy, with broker-favored stocks such as Bread Financial (BFH), Delek US Holdings (DK), American Eagle Outfitters (AEO), Advance Auto Parts (AAP), and Archer Daniels Midland Company (ADM) recommended for monitoring [3][8] Stock Screening Methodology - A screening process has been developed to identify stocks based on improving broker recommendations and upward revisions in earnings estimates over the past four weeks, incorporating the price/sales ratio as a valuation metric [4][5] - Screening parameters include: - Top 75 companies with net upgrades in broker ratings over the last four weeks - Top 10 stocks with earnings estimate revisions for the upcoming quarter - Bottom 10% of stocks based on price-to-sales ratio [5][6] Featured Stocks - **Bread Financial (BFH)**: Benefits from data-driven marketing strategies and solid receivables growth in Card Services, with a Zacks Rank of 3 and an average earnings beat of 32% [7][8] - **Delek US Holdings (DK)**: Has a competitive edge in the oil and gas sector due to extensive downstream operations, with a Zacks Rank of 3 and an average earnings beat of 16.1% [9] - **American Eagle Outfitters (AEO)**: Focused on cost-reduction and brand progress, with strategic initiatives aimed at long-term growth and a Zacks Rank of 3 [10][11] - **Advance Auto Parts (AAP)**: Completed a store footprint optimization program and plans to open over 100 new stores, with a Zacks Rank of 3 [11] - **Archer Daniels Midland Company (ADM)**: Focused on global trends and investing in technological capabilities, with a Zacks Rank of 3 and an average earnings beat of 0.05% [12][13]

Investment Strategy - The market is experiencing record highs, prompting a search for safe investment opportunities [1] - A screen was conducted to identify S&P 500 stocks with above-average growth and below-average price multiples [2] - The screen initially identified 104 stocks meeting the criteria [3] - Energy and materials stocks were excluded due to wariness, narrowing the list to 86 stocks [3] Stock Analysis - T-Mobile was highlighted as a favorable stock, with a leadership transition announcement [3] - T-Mobile is projected to have 194% earnings growth next year [4] - T-Mobile's stock is selling for just over 18 times next year's numbers [4] Market Context - The S&P 500 is expected to have 125% earnings growth next year [2] - The S&P 500 is selling for just under 22 times next year's numbers [2]

Market Overview - U.S. stock markets are experiencing a continued upward trend in 2025, with major indexes like the Dow, S&P 500, and Nasdaq Composite near all-time highs [1] - Expectations for the Federal Reserve's first interest rate cut in 2025 have surged, with a 100% probability of a 25-basis-point cut anticipated in the upcoming September FOMC meeting [2] Stock Performance - Several stocks have shown significant price strength, particularly those on a bull run, indicating a high chance of maintaining momentum [2] - Five highlighted stocks include DRDGOLD Ltd. (DRD), Daktronics Inc. (DAKT), NCS Multistage Holdings Inc. (NCSM), Build-A-Bear Workshop Inc. (BBW), and Vishay Precision Group Inc. (VPG) [3] Stock Screening Criteria - Stocks must show a percentage change in price greater than zero over the last four weeks, indicating recent upward movement [5] - A percentage change in price greater than 10% over the last 12 weeks is required to ensure sustained momentum [5] - Stocks must have a Zacks Rank of 1 (Strong Buy) and an average broker rating of 1, indicating strong future performance expectations [6] - Current stock prices must be above $5 and trading near their 52-week highs, with a price/52-week high-low range greater than 85% [7] Individual Stock Highlights - **DRDGOLD Ltd. (DRD)**: Stock price increased by 49.9% in four weeks, with an expected earnings growth rate of 13.3% for the current year and an 80% improvement in earnings estimates [8][9] - **Daktronics Inc. (DAKT)**: Stock price rose by 39.1% in four weeks, with an expected earnings growth rate of 28.2% and a 6.9% increase in earnings forecasts [8][11] - **NCS Multistage Holdings Inc. (NCSM)**: Stock price climbed 38.4% in four weeks, with an expected earnings growth rate of 6.7% and a 62% improvement in earnings estimates [8][13] - **Build-A-Bear Workshop Inc. (BBW)**: Stock price surged 33.1% in four weeks, with an expected earnings growth rate of 6.9% and a 3.9% increase in earnings estimates [8][15] - **Vishay Precision Group Inc. (VPG)**: Stock price rallied 14.4% in four weeks, with an expected earnings growth rate of -27.4% and a 5.8% improvement in earnings estimates [8][18]

Core Insights - Stock screening is a valuable tool for investors to navigate numerous options and focus on preferred investment parameters [1][10] - Zacks offers a variety of pre-built screens tailored to different investment strategies, including growth, value, momentum, and income [11] Screening Parameters - Screening parameters serve as essential criteria for filtering stocks, akin to ingredients in a recipe, allowing investors to exclude irrelevant information [3] - Parameters can be customized for various investing styles, such as momentum, value, growth, or income-based strategies [2][3] Value Investing - Value investors can utilize parameters like Price-to-Earnings (P/E) ratio, Price-to-Sales (P/S) ratio, and Price-to-Book (P/B) ratio to identify high-quality stocks trading at a discount [4] Momentum Investing - Momentum investing focuses on stocks experiencing buying pressure, with parameters including percentage price change over the last month, average volume, and price as a percentage of the 52-week high-low range [5] Growth Investing - Growth-oriented strategies target companies expected to achieve above-average sales and earnings growth, with key parameters including last year's earnings and sales growth rates, expected growth rates for the current year, and long-term expected EPS growth rate [6][7] Income Investing - Income-focused investing emphasizes dividend-paying stocks, with parameters such as current dividend yield and 5-year historical dividend growth rate to identify stable investments [8]

Group 1 - Stock screening is a common tool used by investors to navigate the overwhelming number of options available, similar to creating a grocery list [1][9] - The screening process can be tailored to individual preferences, as there is no one-size-fits-all approach [2] - Parameters in stock screening can be fine-tuned for various investing styles, including momentum, value, growth, and income [3] Group 2 - Value investors can utilize parameters such as Price-to-Earnings (P/E) ratio, Price-to-Sales (P/S) ratio, and Price-to-Book (P/B) ratio to identify high-quality stocks trading at a discount [4] - Momentum investing focuses on stocks that have experienced buying pressure, with parameters like percentage price change over the last month and average volume [5] - Growth investing targets companies expected to grow sales and earnings at above-average levels, using parameters like last year's earnings growth rates and expected growth rates for the current year [6][7] Group 3 - Income-focused investing emphasizes dividend-paying stocks, which are often more stable and represent mature companies sharing profits with shareholders [8][10] - Parameters for searching dividend-paying stocks include current dividend yield and the 5-year historical dividend growth rate [10] - Zacks offers many pre-built custom screens for various investment strategies, making the screening process smoother for investors [9][11]

Market Overview - U.S. stock markets are experiencing a positive trend after recent volatility, with the S&P 500 near its all-time high, and both the Nasdaq Composite and Dow showing positive year-to-date performance [1] - Factors contributing to this market sentiment include ongoing U.S.-China trade negotiations, stability in the U.S. labor market, and a declining inflation rate, which have encouraged investment in equities [2] Stock Performance - A selection of stocks has demonstrated significant price strength, particularly those on a bull run, indicating potential for continued momentum [2][3] - Five highlighted stocks include Sezzle Inc. (SEZL), Dycom Industries Inc. (DY), Tutor Perini Corp. (TPC), Limbach Holdings Inc. (LMB), and Northrim BanCorp Inc. (NRIM) [3] Screening Parameters - Stocks were screened based on several criteria, including: - Percentage Change in Price (4 Weeks) greater than zero, indicating recent upward movement [5] - Percentage Change Price (12 Weeks) greater than 10%, suggesting sustained momentum over three months [5] - Zacks Rank 1, indicating a strong buy rating with historical outperformance [6] - Average Broker Rating of 1, reflecting positive broker sentiment [6] - Current Price above $5, ensuring stocks are trading at a reasonable level [6] - Current Price/52-Week High-Low Range greater than 85%, indicating strong price performance [7] Individual Stock Highlights - **Sezzle Inc. (SEZL)**: Stock price surged 35.7% in four weeks, with expected earnings growth of 76.1% for the current year [8][9] - **Dycom Industries Inc. (DY)**: Stock price increased 20.3% in four weeks, with a revenue outlook raised for fiscal 2026 after strong Q1 results, and expected earnings growth of 13.2% [10][12] - **Tutor Perini Corp. (TPC)**: Stock price rose 12.8% in four weeks, with expected earnings growth exceeding 100% for the current year [16] - **Limbach Holdings Inc. (LMB)**: Stock price advanced 10.8% in four weeks, with expected earnings growth of 21.9% [18] - **Northrim BanCorp Inc. (NRIM)**: Stock price increased 4.9% in four weeks, with expected earnings growth of 45.9% [20]