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4 Stocks Showing Strong Relative Price Strength Right Now
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The U.S. stock market continues to show strength despite recent concerns over the nation's credit downgrade and fiscal outlook. Over the past few days, major indexes finished higher, driven by optimism surrounding the U.S.-China trade talks. A temporary 90-day pause in tariffs, along with the agreement to lower mutual tariffs to 10%, injected a wave of positive sentiment into Wall Street. The S&P 500, for example, extended its winning streak and has now closed higher in 16 of the past 19 trading days.
Markets were also buoyed by easing inflation indicators, with both CPI and PPI showing signs of cooling. While the Moody’s downgrade has raised long-term concerns about debt and borrowing costs, the focus remains on near-term growth momentum and improving global trade relations.
In this type of environment, using relative price strength as an investment strategy makes sense. Investors can benefit by focusing on stocks outperforming the broader market.
At this stage, investors would be wise to consider stocks such as Great Lakes Dredge & Dock Corporation (GLDD - Free Report) , Sprouts Farmers Market, Inc. (SFM - Free Report) , EverQuote, Inc. (EVER - Free Report) and Encompass Health Corp. (EHC - Free Report) based on their relative price strength.
Relative Price Strength Strategy
Investors generally gauge a stock’s potential returns by examining earnings growth and valuation multiples. At the same time, it’s essential to measure the performance of such a stock relative to its industry, peers, or an appropriate benchmark.
If you see that a stock is underperforming on fundamental factors, it would be prudent to move on and find a better alternative. However, those outperforming their respective sectors in terms of price should be selected because they stand a better chance of providing considerable returns.
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:
Great Lakes Dredge & Dock: It is America’s top dredging contractor. Headquartered in Houston, it operates a vast fleet of 200 vessels and is expanding into offshore energy. The company also has a strong record of global marine project execution. The Zacks Consensus Estimate for 2025 earnings of Great Lakes indicates 10.7% growth. The company has a VGM Score of A.
Over the past 30 days, the Zacks Consensus Estimate for Great Lakes’ 2025 earnings has moved up 34.8%. The company has a market capitalization of $760.8 million. GLDD shares have gone up 15.6% 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 35.5% growth. It has a VGM Score of A.
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 115.4% in a year.
EverQuote: Based in Cambridge, MA, EverQuote operates an online marketplace for consumers shopping for auto, home and renters and life insurance. The company has a market capitalization of $867 million. EverQuote has a VGM Score of B.
The Zacks Consensus Estimate for the company’s 2025 earnings per share indicates 33% year-over-year growth. EverQuote beat the Zacks Consensus Estimate for earnings in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 122.6%, on average. The firm’s shares have lost 3.5% in a year.
Encompass Health: Based in Birmingham, AL, Encompass Health offers facility-based patient care through its network of inpatient rehabilitation hospitals. The Zacks Consensus Estimate for 2025 earnings of Encompass Health indicates 13.1% growth. It has a VGM Score of A.
Encompass Health beat the Zacks Consensus Estimate for earnings in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 312.3%, on average. EHC shares have risen 41.2% 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.
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4 Stocks Showing Strong Relative Price Strength Right Now
The U.S. stock market continues to show strength despite recent concerns over the nation's credit downgrade and fiscal outlook. Over the past few days, major indexes finished higher, driven by optimism surrounding the U.S.-China trade talks. A temporary 90-day pause in tariffs, along with the agreement to lower mutual tariffs to 10%, injected a wave of positive sentiment into Wall Street. The S&P 500, for example, extended its winning streak and has now closed higher in 16 of the past 19 trading days.
Markets were also buoyed by easing inflation indicators, with both CPI and PPI showing signs of cooling. While the Moody’s downgrade has raised long-term concerns about debt and borrowing costs, the focus remains on near-term growth momentum and improving global trade relations.
In this type of environment, using relative price strength as an investment strategy makes sense. Investors can benefit by focusing on stocks outperforming the broader market.
At this stage, investors would be wise to consider stocks such as Great Lakes Dredge & Dock Corporation (GLDD - Free Report) , Sprouts Farmers Market, Inc. (SFM - Free Report) , EverQuote, Inc. (EVER - Free Report) and Encompass Health Corp. (EHC - Free Report) based on their relative price strength.
Relative Price Strength Strategy
Investors generally gauge a stock’s potential returns by examining earnings growth and valuation multiples. At the same time, it’s essential to measure the performance of such a stock relative to its industry, peers, or an appropriate benchmark.
If you see that a stock is underperforming on fundamental factors, it would be prudent to move on and find a better alternative. However, those outperforming their respective sectors in terms of price should be selected because they stand a better chance of providing considerable returns.
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:
Great Lakes Dredge & Dock: It is America’s top dredging contractor. Headquartered in Houston, it operates a vast fleet of 200 vessels and is expanding into offshore energy. The company also has a strong record of global marine project execution. The Zacks Consensus Estimate for 2025 earnings of Great Lakes indicates 10.7% growth. The company has a VGM Score of A.
Over the past 30 days, the Zacks Consensus Estimate for Great Lakes’ 2025 earnings has moved up 34.8%. The company has a market capitalization of $760.8 million. GLDD shares have gone up 15.6% 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 35.5% growth. It has a VGM Score of A.
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 115.4% in a year.
EverQuote: Based in Cambridge, MA, EverQuote operates an online marketplace for consumers shopping for auto, home and renters and life insurance. The company has a market capitalization of $867 million. EverQuote has a VGM Score of B.
The Zacks Consensus Estimate for the company’s 2025 earnings per share indicates 33% year-over-year growth. EverQuote beat the Zacks Consensus Estimate for earnings in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 122.6%, on average. The firm’s shares have lost 3.5% in a year.
Encompass Health: Based in Birmingham, AL, Encompass Health offers facility-based patient care through its network of inpatient rehabilitation hospitals. The Zacks Consensus Estimate for 2025 earnings of Encompass Health indicates 13.1% growth. It has a VGM Score of A.
Encompass Health beat the Zacks Consensus Estimate for earnings in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 312.3%, on average. EHC shares have risen 41.2% 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.