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Midterm Election Volatility: 5 Relative Price Strength Stocks to Buy
Wall Street staged a strong comeback following the U.S. midterm elections, with the S&P 500 joining other major indexes in a broad market rally. Investors welcomed the prospect of divided government, which may reduce the likelihood of sweeping policy changes. Meanwhile, declining oil prices helped ease inflation concerns, further improving market sentiment.
Encouragingly, the S&P 500's gains extended beyond technology stocks, as consumer discretionary, communication services and financial companies attracted buying interest. Resilient private-sector hiring also reinforced confidence in the economy. Historically, U.S. equities have performed well following midterm elections, providing grounds for a cautiously bullish market outlook.
Nevertheless, uncertainty surrounding interest rates, corporate earnings and artificial intelligence investments calls for a selective approach. In this environment, relative price strength remains an attractive investment strategy, allowing investors to focus on stocks demonstrating stronger performance than the broader market.
At this stage, investors would be wise to consider companies such as Repsol, S.A., Bausch + Lomb, DMC Global, Universal Logistics Holdings and Methanex.
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 are 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 11 stocks that made it through the screen:
Repsol: Repsol is an integrated energy company engaged in oil and gas exploration, production, refining, trading, petrochemicals, fuel retailing and renewable power generation. The company's expected EPS growth rate for three to five years is currently 21.3%, which compares favorably with the industry's growth rate of 15.9%. Repsol has a VGM Score of A.
Over the past 60 days, the Zacks Consensus Estimate for Repsol's 2026 earnings has moved up 39.9%. The Zacks Consensus Estimate for 2026 earnings indicates 198.4% growth. REPYY shares have gained 76.2% in a year.
Bausch + Lomb: Bausch + Lomb develops, manufactures and markets products used across eye care, including contact lenses, intraocular lenses, surgical systems and devices, vitamin and mineral supplements, lens care products, prescription eye medications and other consumer eye health products. The Zacks Consensus Estimate for BLCO's 2026 earnings indicates 118.6% growth. Bausch + Lomb has a VGM Score of A.
BLCO beat the Zacks Consensus Estimate for earnings in three of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 21.7%, on average. Bausch + Lomb shares have gained 32.6% in a year.
DMC Global: It operates three manufacturing businesses specializing in architectural building products, oilfield well-completion solutions and composite metals for industrial and transportation applications. The Zacks Consensus Estimate for 2026 earnings of DMC Global indicates 200% growth. The company has a VGM Score of A.
BOOM has a trailing four-quarter earnings surprise of roughly 29.5%, on average. Over the past 60 days, the Zacks Consensus Estimate for the company's 2026 bottom line has moved up from a loss of 21 cents per share to a profit of 35 cents. DMC Global's shares have gone up 27.6% in a year.
Universal Logistics Holdings: Headquartered in Warren, MI, the company provides tailored transportation and logistics solutions across the United States, Mexico and Canada. The Zacks Consensus Estimate for 2026 earnings of the company indicates 933.3% growth. ULH has a VGM Score of A.
Universal Logistics Holdings has a market capitalization of $862.8 million. ULH has a trailing four-quarter earnings surprise of roughly 68.6%, on average. Universal Logistics Holdings shares have gained 113.6% in a year.
Methanex: Headquartered in Vancouver, Canada, it is the world's largest supplier of methanol to North America, Asia-Pacific, Europe and Latin America. Methanex has a market capitalization of around $5.4 billion. It has a VGM Score of A.
Notably, over the past 60 days, the Zacks Consensus Estimate for MEOH's 2026 earnings has gone up 6.6%. The Zacks Consensus Estimate for 2026 earnings of Methanex indicates 376.9% growth. MEOH shares have gained 81.2% in a year.
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.
View the Zacks #1 Rank List
Image: Bigstock
Zacks.com featured highlights include Repsol, Bausch + Lomb, DMC Global, Universal Logistics and Methanex
For Immediate Release
Chicago, IL – November 6, 2026 – Stocks in this week’s article are Repsol, S.A. (REPYY - Free Report) , Bausch + Lomb (BLCO - Free Report) , DMC Global (BOOM - Free Report) , Universal Logistics Holdings (ULH - Free Report) and Methanex (MEOH - Free Report) .
Midterm Election Volatility: 5 Relative Price Strength Stocks to Buy
Wall Street staged a strong comeback following the U.S. midterm elections, with the S&P 500 joining other major indexes in a broad market rally. Investors welcomed the prospect of divided government, which may reduce the likelihood of sweeping policy changes. Meanwhile, declining oil prices helped ease inflation concerns, further improving market sentiment.
Encouragingly, the S&P 500's gains extended beyond technology stocks, as consumer discretionary, communication services and financial companies attracted buying interest. Resilient private-sector hiring also reinforced confidence in the economy. Historically, U.S. equities have performed well following midterm elections, providing grounds for a cautiously bullish market outlook.
Nevertheless, uncertainty surrounding interest rates, corporate earnings and artificial intelligence investments calls for a selective approach. In this environment, relative price strength remains an attractive investment strategy, allowing investors to focus on stocks demonstrating stronger performance than the broader market.
At this stage, investors would be wise to consider companies such as Repsol, S.A., Bausch + Lomb, DMC Global, Universal Logistics Holdings and Methanex.
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 are 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 11 stocks that made it through the screen:
Repsol: Repsol is an integrated energy company engaged in oil and gas exploration, production, refining, trading, petrochemicals, fuel retailing and renewable power generation. The company's expected EPS growth rate for three to five years is currently 21.3%, which compares favorably with the industry's growth rate of 15.9%. Repsol has a VGM Score of A.
Over the past 60 days, the Zacks Consensus Estimate for Repsol's 2026 earnings has moved up 39.9%. The Zacks Consensus Estimate for 2026 earnings indicates 198.4% growth. REPYY shares have gained 76.2% in a year.
Bausch + Lomb: Bausch + Lomb develops, manufactures and markets products used across eye care, including contact lenses, intraocular lenses, surgical systems and devices, vitamin and mineral supplements, lens care products, prescription eye medications and other consumer eye health products. The Zacks Consensus Estimate for BLCO's 2026 earnings indicates 118.6% growth. Bausch + Lomb has a VGM Score of A.
BLCO beat the Zacks Consensus Estimate for earnings in three of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 21.7%, on average. Bausch + Lomb shares have gained 32.6% in a year.
DMC Global: It operates three manufacturing businesses specializing in architectural building products, oilfield well-completion solutions and composite metals for industrial and transportation applications. The Zacks Consensus Estimate for 2026 earnings of DMC Global indicates 200% growth. The company has a VGM Score of A.
BOOM has a trailing four-quarter earnings surprise of roughly 29.5%, on average. Over the past 60 days, the Zacks Consensus Estimate for the company's 2026 bottom line has moved up from a loss of 21 cents per share to a profit of 35 cents. DMC Global's shares have gone up 27.6% in a year.
Universal Logistics Holdings: Headquartered in Warren, MI, the company provides tailored transportation and logistics solutions across the United States, Mexico and Canada. The Zacks Consensus Estimate for 2026 earnings of the company indicates 933.3% growth. ULH has a VGM Score of A.
Universal Logistics Holdings has a market capitalization of $862.8 million. ULH has a trailing four-quarter earnings surprise of roughly 68.6%, on average. Universal Logistics Holdings shares have gained 113.6% in a year.
Methanex: Headquartered in Vancouver, Canada, it is the world's largest supplier of methanol to North America, Asia-Pacific, Europe and Latin America. Methanex has a market capitalization of around $5.4 billion. It has a VGM Score of A.
Notably, over the past 60 days, the Zacks Consensus Estimate for MEOH's 2026 earnings has gone up 6.6%. The Zacks Consensus Estimate for 2026 earnings of Methanex indicates 376.9% growth. MEOH shares have gained 81.2% in a year.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/3024347/midterm-election-rally-5-relative-price-strength-stocks-to-buy
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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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.