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The U.S. stock market had a bumpy start to 2025, with the S&P 500 falling 0.8% in April—its third straight monthly drop. GDP also shrank 0.3%, the first decline since early 2022. Still, strong consumer spending, a steady job market, and a late-day market rebound show there's confidence under the surface.
In uncertain times like these, investors need a smart approach. Relative price strength helps by highlighting stocks that are doing better than others. It’s a simple way to stay on the right side of market momentum.
At this stage, investors would be wise to consider stocks like Kaiser Aluminum Corporation (KALU - Free Report) , Sprouts Farmers Market, Inc. (SFM - Free Report) , BGC Group, Inc. (BGC - Free Report) and ODDITY Tech Ltd. (ODD - Free Report) based on their relative price strength.
Relative Price Strength Strategy
Whether a stock has the potential to offer considerable returns is determined primarily by its earnings and valuation ratios. Simultaneously, it is essential to check whether its price performance exceeds its peers or the industry average.
Upon such comparison, if we find that a stock is unable to match up to wider sectoral growth despite having impressive earnings momentum or valuation multiples, it may be better to avoid it.
However, those outperforming their respective industries or benchmarks should be included in your portfolio since they have a higher chance of securing significant returns. Picking a stock that outperforms its peers ensures a winning option on your hands.
Then again, it is imperative that you determine whether or not an investment has relevant upside potential when considering stocks with significant relative price strength. Stocks delivering better than the S&P 500 for 1 to 3 months, at least, and having solid fundamentals indicate room for growth and are the best ways to go about this strategy.
Finally, it is crucial to find out whether analysts are optimistic about the upcoming earnings of these companies. In order to do this, we have added positive estimate revisions for the current quarter’s (Q1) earnings to our screen. When a stock undergoes an upward revision, it leads to additional price gains.
Screening Parameters
Relative % Price change – 12 weeks greater than 0
Relative % Price change – 4 weeks greater than 0
Relative % Price change – 1 week greater than 0
(We have considered those stocks that have been outperforming the S&P 500 over the last 12 weeks, four weeks and one week.)
% Change (Q1) Est. over 4 Weeks greater than 0: Positive current-quarter estimate revisions over the last four weeks.
Zacks Rank equal to 1: Only Zacks Rank #1 (Strong Buy) stocks — that have returned more than 26% annually over the last 26 years and surpassed the S&P 500 in 23 of the last 26 years — can get through. You can see the complete list of today’s Zacks #1 Rank stocks here.
Current Price greater than or equal to $5 and Average 20-day Volume greater than or equal to 50,000: A minimum price of $5 is a good standard to screen low-priced stocks, while a high trading volume would imply adequate liquidity.
VGM Score less than or equal to B: Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 or 2 (Buy), offer the best upside potential.
Here are the four stocks that made it through the screen:
Kaiser Aluminum: Founded in 1946 and based in Franklin, TN, the company makes specialty aluminum products that serve global industries, such as aerospace and automotive. The Zacks Consensus Estimate for 2025 earnings of Kaiser Aluminium indicates 66.1% growth. The company has a VGM Score of A.
Over the past 30 days, the Zacks Consensus Estimate for Kaiser Aluminum’s 2025 earnings has moved up 35.4%. The company has a market capitalization of $1.1 billion. KALU shares have gone down 29.3% in a year.
Sprouts Farmers Market: Headquartered in Phoenix, AZ, the company operates in a highly fragmented grocery store industry, has a unique model that features fresh produce, foods section, and a vitamin department focused on overall wellness. The Zacks Consensus Estimate for 2025 earnings for Sprouts Farmers Market indicates 30.7% growth. It has a VGM Score of B.
Sprouts Farmers Market beat the Zacks Consensus Estimate for earnings in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 16.5%, on average. Sprouts Farmers Market shares have jumped 131.9% in a year.
BGC Group: Based in New York, it is a global marketplace and financial tech company serving major banks, funds, and trading firms. BGC Group offers brokerage services across asset classes, including the FMX Futures Exchange. The company’s expected EPS growth rate for three to five years is currently 24.7%, which compares favorably with the industry's growth rate of 13.8%. BGC Group has a VGM Score of A.
The Zacks Consensus Estimate for the company’s 2025 earnings per share indicates 23.2% year-over-year growth. Over the past 30 days, the Zacks Consensus Estimate for BGC Group’s 2025 earnings has moved up 5.2%. The firm’s shares have gained 7% in a year.
ODDITY Tech: Based in New York, ODDITY is a consumer tech company reshaping beauty and wellness. It uses AI and data science to serve over 60 million users. Brands include IL MAKIAGE, SpoiledChild, and upcoming launches. The Zacks Consensus Estimate for 2025 earnings of ODDITY Tech indicates 3.1% growth. It has a VGM Score of B.
ODDITY Tech beat the Zacks Consensus Estimate for earnings in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 32.8%, on average. ODD shares have risen 95.8% in a year.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Image: Bigstock
Relative Price Strength: 4 Stocks Defying Market Weakness
The U.S. stock market had a bumpy start to 2025, with the S&P 500 falling 0.8% in April—its third straight monthly drop. GDP also shrank 0.3%, the first decline since early 2022. Still, strong consumer spending, a steady job market, and a late-day market rebound show there's confidence under the surface.
In uncertain times like these, investors need a smart approach. Relative price strength helps by highlighting stocks that are doing better than others. It’s a simple way to stay on the right side of market momentum.
At this stage, investors would be wise to consider stocks like Kaiser Aluminum Corporation (KALU - Free Report) , Sprouts Farmers Market, Inc. (SFM - Free Report) , BGC Group, Inc. (BGC - Free Report) and ODDITY Tech Ltd. (ODD - Free Report) based on their relative price strength.
Relative Price Strength Strategy
Whether a stock has the potential to offer considerable returns is determined primarily by its earnings and valuation ratios. Simultaneously, it is essential to check whether its price performance exceeds its peers or the industry average.
Upon such comparison, if we find that a stock is unable to match up to wider sectoral growth despite having impressive earnings momentum or valuation multiples, it may be better to avoid it.
However, those outperforming their respective industries or benchmarks should be included in your portfolio since they have a higher chance of securing significant returns. Picking a stock that outperforms its peers ensures a winning option on your hands.
Then again, it is imperative that you determine whether or not an investment has relevant upside potential when considering stocks with significant relative price strength. Stocks delivering better than the S&P 500 for 1 to 3 months, at least, and having solid fundamentals indicate room for growth and are the best ways to go about this strategy.
Finally, it is crucial to find out whether analysts are optimistic about the upcoming earnings of these companies. In order to do this, we have added positive estimate revisions for the current quarter’s (Q1) earnings to our screen. When a stock undergoes an upward revision, it leads to additional price gains.
Screening Parameters
Relative % Price change – 12 weeks greater than 0
Relative % Price change – 4 weeks greater than 0
Relative % Price change – 1 week greater than 0
(We have considered those stocks that have been outperforming the S&P 500 over the last 12 weeks, four weeks and one week.)
% Change (Q1) Est. over 4 Weeks greater than 0: Positive current-quarter estimate revisions over the last four weeks.
Zacks Rank equal to 1: Only Zacks Rank #1 (Strong Buy) stocks — that have returned more than 26% annually over the last 26 years and surpassed the S&P 500 in 23 of the last 26 years — can get through. You can see the complete list of today’s Zacks #1 Rank stocks here.
Current Price greater than or equal to $5 and Average 20-day Volume greater than or equal to 50,000: A minimum price of $5 is a good standard to screen low-priced stocks, while a high trading volume would imply adequate liquidity.
VGM Score less than or equal to B: Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 or 2 (Buy), offer the best upside potential.
Here are the four stocks that made it through the screen:
Kaiser Aluminum: Founded in 1946 and based in Franklin, TN, the company makes specialty aluminum products that serve global industries, such as aerospace and automotive. The Zacks Consensus Estimate for 2025 earnings of Kaiser Aluminium indicates 66.1% growth. The company has a VGM Score of A.
Over the past 30 days, the Zacks Consensus Estimate for Kaiser Aluminum’s 2025 earnings has moved up 35.4%. The company has a market capitalization of $1.1 billion. KALU shares have gone down 29.3% in a year.
Sprouts Farmers Market: Headquartered in Phoenix, AZ, the company operates in a highly fragmented grocery store industry, has a unique model that features fresh produce, foods section, and a vitamin department focused on overall wellness. The Zacks Consensus Estimate for 2025 earnings for Sprouts Farmers Market indicates 30.7% growth. It has a VGM Score of B.
Sprouts Farmers Market beat the Zacks Consensus Estimate for earnings in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 16.5%, on average. Sprouts Farmers Market shares have jumped 131.9% in a year.
BGC Group: Based in New York, it is a global marketplace and financial tech company serving major banks, funds, and trading firms. BGC Group offers brokerage services across asset classes, including the FMX Futures Exchange. The company’s expected EPS growth rate for three to five years is currently 24.7%, which compares favorably with the industry's growth rate of 13.8%. BGC Group has a VGM Score of A.
The Zacks Consensus Estimate for the company’s 2025 earnings per share indicates 23.2% year-over-year growth. Over the past 30 days, the Zacks Consensus Estimate for BGC Group’s 2025 earnings has moved up 5.2%. The firm’s shares have gained 7% in a year.
ODDITY Tech: Based in New York, ODDITY is a consumer tech company reshaping beauty and wellness. It uses AI and data science to serve over 60 million users. Brands include IL MAKIAGE, SpoiledChild, and upcoming launches. The Zacks Consensus Estimate for 2025 earnings of ODDITY Tech indicates 3.1% growth. It has a VGM Score of B.
ODDITY Tech beat the Zacks Consensus Estimate for earnings in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 32.8%, on average. ODD shares have risen 95.8% in a year.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance.