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Looking for Leaders? 5 Stocks with Relative Price Strength
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, Southwest Airlines, Ford Motor Co., Seagate Technology Holdings and Texas Capital Bancshares.
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.
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.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
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.
About Screen of the Week
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
See More Zacks Research for These Tickers
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Zacks.com featured highlights include Archrock, Southwest Airlines, Ford Motor, Seagate Technology and Texas Capital Bancshares
For Immediate Release
Chicago, IL – February 6, 2026 – Stocks in this week’s article are Archrock (AROC - Free Report) , Southwest Airlines (LUV - Free Report) , Ford Motor Co. (F - Free Report) , Seagate Technology Holdings (STX - Free Report) and Texas Capital Bancshares (TCBI - Free Report) .
Looking for Leaders? 5 Stocks with Relative Price Strength
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, Southwest Airlines, Ford Motor Co., Seagate Technology Holdings and Texas Capital Bancshares.
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.
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.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2829608/looking-for-leaders-5-stocks-with-relative-price-strength
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.
About Screen of the Week
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
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Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Contact: Jim Giaquinto
Company: Zacks.com
Phone: 312-265-9268
Email: pr@zacks.com
Visit: https://www.zacks.com/
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.