5 Names With Relative Price Strength to Ride the Rally Now

Wall Street extended its winning streak as upbeat trade news and solid economic data fueled investor confidence. The S&P 500 hit another record high after the United States and Japan struck a major trade deal, lowering tariffs and unlocking $550 billion in new investments. Retail sales rose more than expected in June, while jobless claims fell, reflecting a strong labor market and steady consumer spending despite ongoing tariff concerns.With trade negotiations progressing — including deals with the U.K., Indonesia, and the Philippines, and positive signals from China and the EU — the backdrop for equities remains encouraging. The earnings season is also adding momentum. In this environment, focusing on relative price strength makes sense. It helps investors spot the stocks leading the market higher — an effective strategy when optimism is building and strong names are pulling ahead.At this stage, investors would be wise to consider stocks such as Western Digital Corporation WDC, Flowserve Corporation FLS, OPENLANE, Inc. KAR, AngloGold Ashanti plc AU and Jabil Inc. JBL based on their relative price strength.Relative Price Strength StrategyEarnings growth and valuation multiples are indeed important for investors to determine a stock's ability to offer considerable returns. However, these are also essential for determining whether a stock’s price performance is better than its peers or the industry average.If a stock’s performance is lacking that of the broader groups, despite impressive earnings growth or valuation multiples, then something must be wrong.It’s always advisable to stay away from these stocks and bet on those that are outperforming their respective industry or benchmark. This is because betting on a winner always proves to be lucrative.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 ways 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 ParametersRelative % Price change – 12 weeks greater than 0Relative % Price change – 4 weeks greater than 0Relative % 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 10 stocks that made it through the screen:Western Digital: Based in San Jose, CA, Western Digital is a leading developer and manufacturer of data storage devices and solutions based on NAND flash and hard disk drive technologies. The company has a market capitalization of $23.4 billion. Western Digital has a VGM Score of B.The Zacks Consensus Estimate for the company’s fiscal 2025 earnings per share indicates 2,465% year-over-year growth. Western Digital beat the Zacks Consensus Estimate for earnings in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 7.3%, on average. The firm’s shares are up 4% in a year.Flowserve: Based in Irving, TX, is a leading manufacturer and aftermarket service provider of comprehensive flow control systems globally. Flowserve’s expected EPS growth rate for three to five years is currently 14.2%, which compares favorably with the industry's growth rate of 10.3%. The company has a VGM Score of B.The Zacks Consensus Estimate for Flowserve’s 2025 earnings per share indicates 22.1% year-over-year growth. Over the past 60 days, the Zacks Consensus Estimate for its 2025 earnings has moved up from $3.19 per share to $3.21. FLS shares have gained 10% in a year.OPENLANE: Based in Carmel, IN, OPENLANE provides sellers and buyers across the wholesale used vehicle industry with technology-driven remarketing solutions. The company has a market capitalization of $2.7 billion. OPENLANE has a VGM Score of A.The Zacks Consensus Estimate for the company’s 2025 earnings per share indicates 17.7% year-over-year growth. OPENLANE beat the Zacks Consensus Estimate for earnings in two of the last four quarters, met in one and missed in the other. It has a trailing four-quarter earnings surprise of roughly 12%, on average. The firm’s shares are up 44% in a year.AngloGold Ashanti: It is a Colorado-headquartered gold mining company. AngloGold Ashanti has a market capitalization of $21.8 billion. The company has a VGM Score of A.The Zacks Consensus Estimate for AngloGold Ashanti’s 2025 earnings per share indicates 125.8% year-over-year growth. Over the past 60 days, the Zacks Consensus Estimate for its 2025 earnings has moved up 15.8%. AU shares have gained 89% in a year.Jabil: Based in Saint Petersburg, FL, it is one of the largest global suppliers of electronic manufacturing services. Jabil’s expected EPS growth rate for three to five years is currently 16.6%, which compares favorably with the industry's growth rate of 14.8%. The company has a VGM Score of A.The Zacks Consensus Estimate for Jabil’s fiscal 2025 earnings per share indicates 10.6% year-over-year growth. Over the past 60 days, the Zacks Consensus Estimate for its fiscal 2025 earnings has moved up 5.2%. JBL shares have surged 108% in a year.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 todayDisclosure: 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: https://www.zacks.com/performance.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Western Digital Corporation (WDC): Free Stock Analysis Report Flowserve Corporation (FLS): Free Stock Analysis Report Jabil, Inc. (JBL): Free Stock Analysis Report AngloGold Ashanti PLC (AU): Free Stock Analysis Report OPENLANE, Inc. (KAR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks