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Top 5 Stocks with Exciting Relative Price Strength

When investors evaluate the potential for a stock to provide returns, they primarily consider earnings and valuation multiples. At the same time, measuring the performance of such a stock relative to its industry or peers assumes significance.

On such comparison, if we find that a stock is unable to match up to wider sectoral growth, it may be better to avoid it. On the other hand, outperformers should be incorporated into your portfolio, since they have a higher chance of securing significant returns. Picking a stock which outperforms peers ensures you have a winning option on your hands.

Additionally, it is important to gauge whether the stock has room to move even higher when considering stocks which exhibit relative price strength. This is why selecting stocks which have outperformed the S&P 500 over at least 1 to 3 months and which have fundamentals showing further upside potential is an excellent option.

In order to ensure that the strategy has met its objectives, positive estimate revisions for the current quarter’s (Q1) earnings have been included in the screen. An upward revision to estimate is an indication of analyst optimism about the stock. This in turn naturally leads to further price gains for the stock.

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, 4 weeks and 1 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 26 years – can get through.

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 out the low priced stocks, while a high trading volume would imply adequate liquidity.

VGM Scoreless 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 5 of the 21 stocks that made it through the screen:

Masimo Corp. (MASI)

Silicon Motion Technology Corp. (SIMO)

AMN Healthcare Services Inc. (AHS)

Rogers Corp. (ROG)

Fresh Del Monte Produce Inc. (FDP)

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.

The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.

Click here to sign up for a free trial to the Research Wizard today

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.

Disclosure: Performance information for Zacks’ portfolios and strategies are available at:

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FRESH DEL MONTE (FDP): Free Stock Analysis Report
SILICON MOTION (SIMO): Free Stock Analysis Report
ROGERS CORP (ROG): Free Stock Analysis Report
MASIMO CORP (MASI): Free Stock Analysis Report
AMN HLTHCR SVCS (AHS): Free Stock Analysis Report
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