September is historically known as the worst-performing month for U.S. equities. This year multiple concerns have unnerved market participants. A spike in crude oil prices, a sticky inflation rate, soaring yields on U.S. Treasury Notes and the Fed’s reinitiation of an interest rate hike regime are the near-term headwinds. Consequently, month to date, the Dow, the S&P 500 and the Nasdaq Composite are down 3.2%, 1.8% and 1.5%, respectively.

As a result, a few stocks have shown price strength. We have primarily targeted stocks that have recently been on a bull run. These stocks have a high chance of carrying the momentum forward.

Five such stocks are — EuroDry Ltd. (EDRY Quick QuoteEDRY - Free Report) , Vince Holding Corp. (VNCE Quick QuoteVNCE - Free Report) , Nutex Health Inc. (NUTX Quick QuoteNUTX - Free Report) , TXO Partners L.P. (TXO Quick QuoteTXO - Free Report) and KB Financial Group Inc. (KB Quick QuoteKB - Free Report) .

If a stock is continuously witnessing an uptrend, there must be a solid reason, or it would probably have crashed. So, looking at stocks capable of beating the benchmark that they have set for themselves seems rational.

However, recent price strength alone cannot create magic. Therefore, other relevant parameters are needed to create a successful investment strategy.

Here’s how you should create the screen to shortlist the current as well as the potential winners.

Screening Parameters:

Percentage Change in Price (4 Weeks) greater than zero: This criterion shows that the stock has moved higher in the last four weeks. 

Percentage Change Price (12 Weeks) greater than 10: This indicates that the stock has seen momentum over the last three months. This lowers the risk of choosing stocks that may have drawn attention due to the overwhelming performance of the overall market in a very short period. 

Zacks Rank 1: No matter whether market conditions are good or bad, stocks with a Zacks Rank #1 (Strong Buy) have a proven history of outperformance. You can see the complete list of today’s Zacks #1 Rank stocks here.

Average Broker Rating 1: This indicates that brokers are also highly hopeful about the stock’s future performance. 

Current Price greater than 5: The stocks must all be trading at a minimum of $5.

Current Price/ 52-Week High-Low Range more than 85%: This criterion filters stocks that are trading near their respective 52-week highs. It indicates that these are strong enough in terms of price.

Just these few criteria narrowed down the search from over 7,700 stocks to eight.

Let’s discuss five out of those eight stocks here:

EuroDry is an owner and operator of drybulk vessels and provider of seaborne transportation for drybulk cargoes. EDRY owns and operates drybulk carriers that transport major bulks, such as iron ore, coal, and grains, and minor bulks, including bauxite, phosphate, and fertilizers.

The stock price of EDRY has soared 62.2% in the past four weeks. It has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 49.1% over the last 30 days.

Vince Holding offers a broad range of women's and men's ready-to-wear including its signature cashmere sweaters, leather jackets, luxe leggings, dresses, silk and woven tops, denim and footwear. 

VNCE operates in two segments, Vince Wholesale and Vince Direct-to-Consumer. VNCE sells its products through its branded specialty retail stores, outlet stores, department stores, and specialty stores, as well as through its vince.com e-commerce platform.

The stock price of Vince Holding has jumped 40.2% over the past four weeks. The company has an expected earnings growth rate of more than 100% for the current year (ending January 2027). The Zacks Consensus Estimate for the current year’s earnings has improved more than 100% over the last 30 days.

Nutex Health is a physician-led, technology-enabled healthcare services company. NUTX’s  operating divisions include the Hospital division and the Population Health Management division. Hospital division implements and operates different health care models, including micro hospitals, specialty hospitals and hospital outpatient departments. NUTX’s Population Health Management division owns and operates provider networks such as Independent Physician Associations. 

The stock price of Nutex Health has appreciated 14.8% in the past four weeks. It has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 21.4% over the last 60 days.

TXO Partners is an oil and natural gas company that focuses on the acquisition, development, optimization, and exploitation of conventional oil, natural gas, and natural gas liquid reserves in North America. TXO’s acreage positions are concentrated in the Permian Basin of West Texas and New Mexico, the San Juan Basin of New Mexico and Colorado, and the Williston Basin of Montana and North Dakota.

The stock price of TXO Partners has advanced 10.6% in the past four weeks. It has an expected earnings growth rate of 13.8% for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 13.8% over the last seven days.

KB Financial Group provides financial products and services in South Korea, the United States, New Zealand, China, Cambodia, the United Kingdom, Indonesia, and internationally. On the asset side, KB provides credit and related financial services to individuals and small and medium-sized enterprises and, to a lesser extent, to large corporate customers. On the deposit side, KB provides a range of deposit products and related services to both individuals and enterprises of all sizes. 

The stock price of KB Financial Group has gained 10.1% in the past four weeks. It has an expected earnings growth rate of 20.3% for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 7.5% over the last 60 days.