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5 Relative Price Strength Winners Investors Should Buy Now
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Key Takeaways
U.S. stocks are set for a firmer start as hopes of a U.S.-Iran peace deal lift market sentiment.
The screen targets stocks beating the S&P 500 over 12 weeks, four weeks and one week.
PLGO, GCO, DAVE, NUE and ARW passed the screen with positive estimate revisions and strong price gains.
U.S. stocks look set to begin the week on a firmer note as hopes of a U.S.-Iran peace deal ease a major source of market anxiety. Stock futures moved higher, oil prices fell, and markets rallied following reports of progress in reopening the Strait of Hormuz. Lower crude prices could help cool inflation worries, giving investors more confidence ahead of the Federal Reserve’s policy decision.
The tone is not risk-free, since details of the agreement still need to be signed, and energy flows may take time to normalize. Even so, the backdrop has turned mildly bullish. Stronger interest in technology and innovation-led names also points to improving confidence. In this setting, relative price strength remains a useful strategy. Stocks already outperforming may attract fresh buying as sentiment improves.
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 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 14 stocks that made it through the screen:
Pelagos Insurance Capital: Pelagos Insurance Capital is a specialty insurance and reinsurance company focused on strategic capital allocation and careful risk selection. Backed by strong ratings, diversified underwriting partners and solid capital, it aims to build long-term value. Over the past 60 days, the Zacks Consensus Estimate for the company’s 2026 earnings has moved up 14.9%. PLGO has a VGM Score of B.
Pelagos Insurance Capital beat the Zacks Consensus Estimate for earnings in three of the last four quarters and missed in the other. It has a trailing four-quarter earnings surprise of roughly 53.6%, on average. PLGO shares have gained 41.5% in a year.
Genesco: Genesco is a footwear-focused retailer bringing style-led brands like Journeys, Schuh, Johnston & Murphy and Little Burgundy to customers. It blends curated products, distinct brand stories, digital growth and strong teams to build loyalty. The Zacks Consensus Estimate for Genesco’s fiscal 2027 earnings indicates 55.2% growth. GCO has a VGM Score of B.
The firm has a market capitalization of around $472 million. Over the past 60 days, the Zacks Consensus Estimate for Genesco’s fiscal 2027 earnings has gone up 4.7%. GCO’s shares have surged 93.6% in a year.
Dave: It is a digital banking platform helping underserved users manage money with ease. DAVE’s tools include budgeting support, interest-free cash advances, side income opportunities, and a modern checking account — all designed to boost financial health. The Zacks Consensus Estimate for 2026 earnings of the company indicates 22.7% growth. DAVE has a VGM Score of B.
Over the past 60 days, the Zacks Consensus Estimate for DAVE’s 2026 earnings has moved up 11.1%. The company has a market capitalization of $3.7 billion. DAVE shares have gone up 32.4% in a year.
Nucor: Nucor is a leading producer of structural steel, steel bars, steel joists, steel deck and cold finished bars in the United States. The Zacks Consensus Estimate for 2026 earnings of Nucor indicates 103.8% growth. NUE has a VGM Score of B.
Over the past 60 days, the Zacks Consensus Estimate for Nucor’s 2026 earnings has moved up 33.4%. The company has a market capitalization of $69.7 billion. NUE shares have gone up 119% in a year.
Arrow Electronics: The company is one of the world’s largest distributors of electronic components and enterprise computing products. Over the past 60 days, the Zacks Consensus Estimate for Arrow Electronics’ 2026 earnings has moved up 40.9%. ARW has a VGM Score of B.
Arrow Electronics beat the Zacks Consensus Estimate for earnings in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 33.7%, on average. ARW shares have gained 81.7% in a year.
View the Zacks #1 Rank List
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5 Relative Price Strength Winners Investors Should Buy Now
Key Takeaways
U.S. stocks look set to begin the week on a firmer note as hopes of a U.S.-Iran peace deal ease a major source of market anxiety. Stock futures moved higher, oil prices fell, and markets rallied following reports of progress in reopening the Strait of Hormuz. Lower crude prices could help cool inflation worries, giving investors more confidence ahead of the Federal Reserve’s policy decision.
The tone is not risk-free, since details of the agreement still need to be signed, and energy flows may take time to normalize. Even so, the backdrop has turned mildly bullish. Stronger interest in technology and innovation-led names also points to improving confidence. In this setting, relative price strength remains a useful strategy. Stocks already outperforming may attract fresh buying as sentiment improves.
At this stage, investors would be wise to consider companies such as Pelagos Insurance Capital Limited (PLGO - Free Report) , Genesco Inc. (GCO - Free Report) , Dave Inc. (DAVE - Free Report) , Nucor Corporation (NUE - Free Report) and Arrow Electronics (ARW - Free Report) .
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 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 14 stocks that made it through the screen:
Pelagos Insurance Capital: Pelagos Insurance Capital is a specialty insurance and reinsurance company focused on strategic capital allocation and careful risk selection. Backed by strong ratings, diversified underwriting partners and solid capital, it aims to build long-term value. Over the past 60 days, the Zacks Consensus Estimate for the company’s 2026 earnings has moved up 14.9%. PLGO has a VGM Score of B.
Pelagos Insurance Capital beat the Zacks Consensus Estimate for earnings in three of the last four quarters and missed in the other. It has a trailing four-quarter earnings surprise of roughly 53.6%, on average. PLGO shares have gained 41.5% in a year.
Genesco: Genesco is a footwear-focused retailer bringing style-led brands like Journeys, Schuh, Johnston & Murphy and Little Burgundy to customers. It blends curated products, distinct brand stories, digital growth and strong teams to build loyalty. The Zacks Consensus Estimate for Genesco’s fiscal 2027 earnings indicates 55.2% growth. GCO has a VGM Score of B.
The firm has a market capitalization of around $472 million. Over the past 60 days, the Zacks Consensus Estimate for Genesco’s fiscal 2027 earnings has gone up 4.7%. GCO’s shares have surged 93.6% in a year.
Dave: It is a digital banking platform helping underserved users manage money with ease. DAVE’s tools include budgeting support, interest-free cash advances, side income opportunities, and a modern checking account — all designed to boost financial health. The Zacks Consensus Estimate for 2026 earnings of the company indicates 22.7% growth. DAVE has a VGM Score of B.
Over the past 60 days, the Zacks Consensus Estimate for DAVE’s 2026 earnings has moved up 11.1%. The company has a market capitalization of $3.7 billion. DAVE shares have gone up 32.4% in a year.
Nucor: Nucor is a leading producer of structural steel, steel bars, steel joists, steel deck and cold finished bars in the United States. The Zacks Consensus Estimate for 2026 earnings of Nucor indicates 103.8% growth. NUE has a VGM Score of B.
Over the past 60 days, the Zacks Consensus Estimate for Nucor’s 2026 earnings has moved up 33.4%. The company has a market capitalization of $69.7 billion. NUE shares have gone up 119% in a year.
Arrow Electronics: The company is one of the world’s largest distributors of electronic components and enterprise computing products. Over the past 60 days, the Zacks Consensus Estimate for Arrow Electronics’ 2026 earnings has moved up 40.9%. ARW has a VGM Score of B.
Arrow Electronics beat the Zacks Consensus Estimate for earnings in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 33.7%, on average. ARW shares have gained 81.7% in a year.