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Looking for Leaders? 5 Stocks With Relative Price Strength
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Key Takeaways
Market volatility has pushed investors toward stocks with relative price strength.
A screening strategy highlights companies outperforming the S&P 500 across 12-, 4- and 1-week periods.
AROC, LUV, F, STX and TCBI passed all screens.
Investor mood has turned cautious recently as worries about stretched valuations hit technology and healthcare stocks, sparking a sharp sell-off led by software names. Concerns grew that heavy AI spending was no longer matching near-term returns, especially with interest rates staying higher for longer. Still, many felt the pullback became excessive by the close, opening the door for selective dip buying.
Despite the turbulence, the broader market has held up well. Major indexes remain close to record levels, with the S&P 500 touching a new high earlier in the week. The AI story is far from over, but investors are increasingly looking beyond tech, rotating into areas tied to a strengthening economy and more reasonable valuations. A newly announced U.S.–India trade agreement, which lowers tariffs on both sides, added a modest positive undertone.
With rate cuts likely on hold for now, leadership matters. Focusing on stocks showing relative price strength can help investors stay aligned with winning trends while avoiding weaker pockets of the market.
Earnings growth and valuation multiples are indeed important for investors to determine a stock's ability to offer considerable returns. However, these are also essential for determining whether a stock’s price performance is better than its peers or the industry average.
If a stock’s performance is lacking that of the broader groups, despite impressive earnings growth or valuation multiples, then something must be wrong.
It’s always advisable to stay away from these stocks and bet on those that are outperforming their respective industry or benchmark. This is because betting on a winner always proves to be lucrative.
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 the best way 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 five of the 15 stocks that made it through the screen:
Archrock: Houston, TX-based Archrock is a U.S. energy infrastructure company focused on midstream natural gas compression. The Zacks Consensus Estimate for 2026 earnings of the company indicate 21.5% growth. AROC has a VGM Score of A.
The firm has a market capitalization of over $5 billion. Notably, over the past 60 days, the Zacks Consensus Estimate for Archrock’s 2026 earnings has gone up 69%. AROC’s shares have gained 6.8% in a year.
Southwest Airlines: Based in Dallas, TX, it is a passenger airline that provides scheduled air transportation in the United States and 'ten near-international' markets. Southwest Airlines’ expected EPS growth rate for three to five years is currently 32.8%, which compares favorably with the industry's growth rate of 19.8%. The company has a VGM Score of B.
The Zacks Consensus Estimate for Southwest Airlines’ 2026 earnings per share indicates 336.6% year-over-year growth. Over the past 60 days, the Zacks Consensus Estimate for its 2026 earnings has moved up from $2.77 per share to $4.06. LUV shares have increased 69.1% in a year.
Ford Motor Company: Ford is one of the leading automakers in the world. It manufactures, markets and services cars, trucks, sport utility vehicles, electrified vehicles and Lincoln luxury vehicles. The company beat the Zacks Consensus Estimate for earnings in each of the last four quarters, with the average being 14%. Headquartered in Dearborn, MI, Ford has a VGM Score of A.
The firm has a market capitalization of nearly $55 billion. Notably, over the past 60 days, the Zacks Consensus Estimate for Ford’s 2026 earnings has moved up 9.3%. F’s shares have increased 49.2% in a year.
Seagate Technology Holdings: Headquartered in Dublin, Ireland, the company is a leading provider of data storage technology and infrastructure solutions. Seagate Technology has a market capitalization of nearly $100 billion. It has a VGM Score of B.
Notably, over the past 60 days, the Zacks Consensus Estimate for STX’s fiscal 2026 earnings has moved up 11.8%. Seagate Technology beat the Zacks Consensus Estimate for earnings in each of the last four quarters, with the average being 8.4%. STX stock has surged 333.6% in a year.
Texas Capital Bancshares: A financial holding company, the firm is the parent company of Texas Capital Bank. Texas Capital Bancshares’ expected EPS growth rate for three to five years is currently 27.2%, which compares favorably with the industry's growth rate of 13.6%. The company has a VGM Score of A.
The Zacks Consensus Estimate for Texas Capital Bancshares’ 2026 earnings per share indicates 12.1% year-over-year growth. Over the past 60 days, the Zacks Consensus Estimate for its 2026 earnings has moved up from $7.21 per share to $7.62. TCBI shares have gained 25.7% in a year.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
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Looking for Leaders? 5 Stocks With Relative Price Strength
Key Takeaways
Investor mood has turned cautious recently as worries about stretched valuations hit technology and healthcare stocks, sparking a sharp sell-off led by software names. Concerns grew that heavy AI spending was no longer matching near-term returns, especially with interest rates staying higher for longer. Still, many felt the pullback became excessive by the close, opening the door for selective dip buying.
Despite the turbulence, the broader market has held up well. Major indexes remain close to record levels, with the S&P 500 touching a new high earlier in the week. The AI story is far from over, but investors are increasingly looking beyond tech, rotating into areas tied to a strengthening economy and more reasonable valuations. A newly announced U.S.–India trade agreement, which lowers tariffs on both sides, added a modest positive undertone.
With rate cuts likely on hold for now, leadership matters. Focusing on stocks showing relative price strength can help investors stay aligned with winning trends while avoiding weaker pockets of the market.
At this stage, investors would be wise to consider companies such as Archrock (AROC - Free Report) , Southwest Airlines (LUV - Free Report) , Ford Motor Company (F - Free Report) , Seagate Technology Holdings (STX - Free Report) and Texas Capital Bancshares (TCBI - Free Report) (STX - Free Report) .
Relative Price Strength Strategy
Earnings growth and valuation multiples are indeed important for investors to determine a stock's ability to offer considerable returns. However, these are also essential for determining whether a stock’s price performance is better than its peers or the industry average.
If a stock’s performance is lacking that of the broader groups, despite impressive earnings growth or valuation multiples, then something must be wrong.
It’s always advisable to stay away from these stocks and bet on those that are outperforming their respective industry or benchmark. This is because betting on a winner always proves to be lucrative.
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 the best way 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 five of the 15 stocks that made it through the screen:
Archrock: Houston, TX-based Archrock is a U.S. energy infrastructure company focused on midstream natural gas compression. The Zacks Consensus Estimate for 2026 earnings of the company indicate 21.5% growth. AROC has a VGM Score of A.
The firm has a market capitalization of over $5 billion. Notably, over the past 60 days, the Zacks Consensus Estimate for Archrock’s 2026 earnings has gone up 69%. AROC’s shares have gained 6.8% in a year.
Southwest Airlines: Based in Dallas, TX, it is a passenger airline that provides scheduled air transportation in the United States and 'ten near-international' markets. Southwest Airlines’ expected EPS growth rate for three to five years is currently 32.8%, which compares favorably with the industry's growth rate of 19.8%. The company has a VGM Score of B.
The Zacks Consensus Estimate for Southwest Airlines’ 2026 earnings per share indicates 336.6% year-over-year growth. Over the past 60 days, the Zacks Consensus Estimate for its 2026 earnings has moved up from $2.77 per share to $4.06. LUV shares have increased 69.1% in a year.
Ford Motor Company: Ford is one of the leading automakers in the world. It manufactures, markets and services cars, trucks, sport utility vehicles, electrified vehicles and Lincoln luxury vehicles. The company beat the Zacks Consensus Estimate for earnings in each of the last four quarters, with the average being 14%. Headquartered in Dearborn, MI, Ford has a VGM Score of A.
The firm has a market capitalization of nearly $55 billion. Notably, over the past 60 days, the Zacks Consensus Estimate for Ford’s 2026 earnings has moved up 9.3%. F’s shares have increased 49.2% in a year.
Seagate Technology Holdings: Headquartered in Dublin, Ireland, the company is a leading provider of data storage technology and infrastructure solutions. Seagate Technology has a market capitalization of nearly $100 billion. It has a VGM Score of B.
Notably, over the past 60 days, the Zacks Consensus Estimate for STX’s fiscal 2026 earnings has moved up 11.8%. Seagate Technology beat the Zacks Consensus Estimate for earnings in each of the last four quarters, with the average being 8.4%. STX stock has surged 333.6% in a year.
Texas Capital Bancshares: A financial holding company, the firm is the parent company of Texas Capital Bank. Texas Capital Bancshares’ expected EPS growth rate for three to five years is currently 27.2%, which compares favorably with the industry's growth rate of 13.6%. The company has a VGM Score of A.
The Zacks Consensus Estimate for Texas Capital Bancshares’ 2026 earnings per share indicates 12.1% year-over-year growth. Over the past 60 days, the Zacks Consensus Estimate for its 2026 earnings has moved up from $7.21 per share to $7.62. TCBI shares have gained 25.7% in a year.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.