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5 Relative Price Strength Stocks With Momentum on Their Side
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Key Takeaways
Five stocks passed the screen for S&P 500 outperformance, positive estimate revisions and solid fundamentals.
VLO leads one-year gains at 132.6%, followed by RCMT at 54.7%, IVZ at 51.4% and RELY at 41.3%.
All five saw 2026 earnings estimates rise over 60 days, led by VLO's 37.1% increase.
U.S. stocks ended August on a softer note as renewed U.S.-Iran tensions lifted oil prices and kept Treasury yields elevated. Still, the broader market picture remains encouraging. The S&P 500 gained 2.6% in August and stayed close to its recent record high, suggesting that the underlying uptrend remains intact despite geopolitical uncertainty and inflation concerns.
The rally could also become more broad-based, with cyclical areas potentially joining AI-related stocks if economic growth remains steady. Expectations of continued business investment provide further support, while possible policy measures aimed at easing financial conditions could create a better backdrop for equities.
With market momentum still positive but volatility likely to persist, investors may benefit from focusing on stocks already showing stronger performance than their peers. Relative price strength therefore appears to be a useful strategy in the current market.
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 in 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 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 16 stocks that made it through the screen:
Paycom Software: It provides cloud-based human capital management software that helps businesses manage employees from hiring through retirement. The Zacks Consensus Estimate for 2026 earnings of Paycom Software indicates 28.8% growth. PAYC has a VGM Score of B.
Over the past 60 days, the Zacks Consensus Estimate for Paycom Software’s 2026 earnings has moved up 10.9%. The company has a market capitalization of $10.8 billion. PAYC shares have gone up 8.7% in a year.
Invesco: Founded in 1935, Invesco is an independent investment manager serving clients in more than 120 countries with $2.5 trillion in assets under management as of June 30, 2026. The Zacks Consensus Estimate for 2026 earnings of Invesco indicates 38.9% growth. IVZ has a VGM Score of B.
Over the past 60 days, the Zacks Consensus Estimate for Invesco’s 2026 earnings has moved up 8.9%. The company has a market capitalization of $14.6 billion. IVZ shares have gone up 51.4% in a year.
RCM Technologies:The company provides business and technology services in healthcare, engineering, aerospace, defense, industrial, life sciences, and data, helping companies modernize operations and infrastructure. RCM Technologies has a market capitalization of $295.8 million. It has a VGM Score of A.
Notably, over the past 60 days, the Zacks Consensus Estimate for RCM Technologies’ 2026 earnings has gone up 13.3%. The Zacks Consensus Estimate for 2026 earnings of RCMT indicates 22.8% growth. RCM Technologies shares have gained 54.7% in a year.
Remitly Global: Seattle, WA-based Remitly Global is a mobile-first platform that helps immigrants send money across borders. Operating in more than 175 countries, it supports millions of customers and is expanding beyond remittances into broader cross-border financial services for individuals and businesses. The Zacks Consensus Estimate for 2026 earnings of the company indicates 390.6% growth. RELY has a VGM Score of B.
The firm has a market capitalization of around $5.7 billion. Notably, over the past 60 days, the Zacks Consensus Estimate for Remitly Global’s 2026 earnings has gone up 13.8%. RELY’s shares have gained 41.3% in a year.
Valero Energy: It is one of the largest independent refiners and marketers of petroleum products in the United States. Valero Energy’s expected EPS growth rate for three to five years is currently 37.3%, which compares favorably with the industry's growth rate of 33%. VLO has a VGM Score of A.
Over the past 60 days, the Zacks Consensus Estimate for Valero Energy’s 2026 earnings has moved up 37.1%. The Zacks Consensus Estimate for 2026 earnings indicates 283.6% growth. VLO shares have gained 132.6% in a year.
View the Zacks #1 Rank List
Image: Bigstock
5 Relative Price Strength Stocks With Momentum on Their Side
Key Takeaways
U.S. stocks ended August on a softer note as renewed U.S.-Iran tensions lifted oil prices and kept Treasury yields elevated. Still, the broader market picture remains encouraging. The S&P 500 gained 2.6% in August and stayed close to its recent record high, suggesting that the underlying uptrend remains intact despite geopolitical uncertainty and inflation concerns.
The rally could also become more broad-based, with cyclical areas potentially joining AI-related stocks if economic growth remains steady. Expectations of continued business investment provide further support, while possible policy measures aimed at easing financial conditions could create a better backdrop for equities.
With market momentum still positive but volatility likely to persist, investors may benefit from focusing on stocks already showing stronger performance than their peers. Relative price strength therefore appears to be a useful strategy in the current market.
At this stage, investors would be wise to consider companies such as Paycom Software (PAYC - Free Report) , Invesco Ltd. (IVZ - Free Report) , RCM Technologies (RCMT - Free Report) , Remitly Global (RELY - Free Report) and Valero Energy (VLO - Free Report) .
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 in 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 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 16 stocks that made it through the screen:
Paycom Software: It provides cloud-based human capital management software that helps businesses manage employees from hiring through retirement. The Zacks Consensus Estimate for 2026 earnings of Paycom Software indicates 28.8% growth. PAYC has a VGM Score of B.
Over the past 60 days, the Zacks Consensus Estimate for Paycom Software’s 2026 earnings has moved up 10.9%. The company has a market capitalization of $10.8 billion. PAYC shares have gone up 8.7% in a year.
Invesco: Founded in 1935, Invesco is an independent investment manager serving clients in more than 120 countries with $2.5 trillion in assets under management as of June 30, 2026. The Zacks Consensus Estimate for 2026 earnings of Invesco indicates 38.9% growth. IVZ has a VGM Score of B.
Over the past 60 days, the Zacks Consensus Estimate for Invesco’s 2026 earnings has moved up 8.9%. The company has a market capitalization of $14.6 billion. IVZ shares have gone up 51.4% in a year.
RCM Technologies:The company provides business and technology services in healthcare, engineering, aerospace, defense, industrial, life sciences, and data, helping companies modernize operations and infrastructure. RCM Technologies has a market capitalization of $295.8 million. It has a VGM Score of A.
Notably, over the past 60 days, the Zacks Consensus Estimate for RCM Technologies’ 2026 earnings has gone up 13.3%. The Zacks Consensus Estimate for 2026 earnings of RCMT indicates 22.8% growth. RCM Technologies shares have gained 54.7% in a year.
Remitly Global: Seattle, WA-based Remitly Global is a mobile-first platform that helps immigrants send money across borders. Operating in more than 175 countries, it supports millions of customers and is expanding beyond remittances into broader cross-border financial services for individuals and businesses. The Zacks Consensus Estimate for 2026 earnings of the company indicates 390.6% growth. RELY has a VGM Score of B.
The firm has a market capitalization of around $5.7 billion. Notably, over the past 60 days, the Zacks Consensus Estimate for Remitly Global’s 2026 earnings has gone up 13.8%. RELY’s shares have gained 41.3% in a year.
Valero Energy: It is one of the largest independent refiners and marketers of petroleum products in the United States. Valero Energy’s expected EPS growth rate for three to five years is currently 37.3%, which compares favorably with the industry's growth rate of 33%. VLO has a VGM Score of A.
Over the past 60 days, the Zacks Consensus Estimate for Valero Energy’s 2026 earnings has moved up 37.1%. The Zacks Consensus Estimate for 2026 earnings indicates 283.6% growth. VLO shares have gained 132.6% in a year.