This story originally appeared on Zack
Most of us have heard the saying “the trend is your friend”. And this is undeniably the key to success when it comes to investing or trading in the short term. But it is not easy to ensure the sustainability of a trend and to profit from it.
The trend is often reversed before exiting the trade resulting in short term capital loss for investors. So, for a profitable trade, factors like strong fundamentals, positive revisions to earnings estimates, etc. need to be confirmed. that could keep the momentum going.
Investors looking to profit from currently moving stocks may find our Recent Price Strength screen very useful. This preset screen is handy for spotting stocks that are on an uptrend supported by the strength of their fundamentals and trading in the upper part of their 52 week high-low range, which is typically an indicator of an uptrend.
There are several actions that have crossed the screen and PDF Solutions (PDFS) is one of them. Here are the main reasons why this stock is a solid choice for a “trendy” investment.
A solid price increase over a 12-week period reflects the continued willingness of investors to pay more for a stock’s potential rise. PDFS is quite well suited in this regard, gaining 36% over this period.
However, it is not enough to just watch the price development for about three months, as it does not reflect any trend reversals that could have occurred in a shorter period of time. It is important for a potential winner to maintain the price trend. A price increase of 0.9% over the past four weeks ensures that the trend is still in place for this supplier’s stock of software and services to semiconductor manufacturers.
Additionally, PDFS is currently trading at 85.9% of its 52 week high-low range, suggesting that it may be on the verge of a breakout.
Looking at the fundamentals, the stock currently has a Zacks Rank # 2 (Buy), meaning it is in the top 20% of the 4,000 stocks we rank based on trends in earnings estimate revisions and earnings estimates. BPA surprises – the key factors that impact short-term price movements of a stock.
The Zacks Rank stock rating system, which uses four factors related to earnings estimates to rank stocks into five groups, ranging from Zacks Rank # 1 (Strong Buy) to Zacks Rank # 5 (Strong Sell), has an impressive track record. externally audited. record, with Zacks Rank # 1 stocks generating an average annual return of + 25% since 1988. You can see the full list of today’s Zacks Rank # 1 (strong buy) stocks here >>>>
Another factor that confirms the fundamental strength of the business is its average broker recommendation # 1 (strong buy). This indicates that the brokerage community is very optimistic about the short-term price performance of the stock.
So the price trend in PDFS might not be reversing anytime soon.
In addition to PDFS, several other actions are currently going through our “Recent Price Strength” screen. You can consider investing in them and start looking for the most recent stocks that match these criteria.
This isn’t the only screen that might help you find your next winning stock pick. Depending on your personal investing style, you can choose from over 45 Zacks Premium Displays which are strategically created to beat the market.
However, keep in mind that the key to a successful stock selection strategy is to ensure that it has produced profitable results in the past. You can easily do this with the help of Zacks’ research assistant. In addition to allowing you to check the effectiveness of your strategy, the program contains some of our most successful stock selection strategies.
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