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Wall Street’s rally has been hard to ignore. Since early 2023, stocks have powered higher, with the S&P 500 repeatedly hitting record highs in 2025. Momentum gained further after weak August payroll data — just 22,000 jobs added — reinforced expectations that the Fed will cut rates at its September meeting. There is a high probability of a 25-basis-point cut, with talk that a larger move could even be on the table.
The backdrop is shifting — inflation pressures are easing while employment data is cooling — giving the Fed room to act without triggering recession fears. Investors cheered this setup, pushing markets to fresh highs. In this kind of environment, strategies that focus on relative price strength stand out. They help pinpoint the stocks leading the charge — the ones most likely to keep outperforming as the bull run continues.
At this stage, investors would be wise to consider stocks such as Kimball Electronics (KE), REV Group (REVG), Evercore (EVR), Visteon (VC) and Zumiez (ZUMZ) based on their relative price strength.
Earnings 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.
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, 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 eight stocks that made it through the screen:
Kimball Electronics: Based in Jasper, IN, it is a global contract manufacturer delivering Electronics Manufacturing Services and tailored solutions across industries. Kimball Electronics supports diverse sectors with durable, high-quality electronic products. The company’s current market capitalization is $725.6 million. It has a VGM Score of A.
Notably, over the past 60 days, the Zacks Consensus Estimate for Kimball Electronics’ fiscal 2026 earnings has moved up 20.2%. It beat the Zacks Consensus Estimate for earnings in three of the last four quarters and met in the other, with the average being 23.7%. KE’s shares have gone up 74.6% in a year.
REV Group: It designs and manufactures specialty and recreational vehicles, serving municipalities, government agencies, contractors and consumers. Its portfolio spans ambulances, fire apparatus, motorhomes and aftermarket services across trusted, long-standing brands. The Zacks Consensus Estimate for 2025 earnings of REV Group indicates 60.4% growth. Headquartered in Brookfield, WI, REVG has a VGM Score of A.
The firm has a market capitalization of $3 billion. REV Group beat the Zacks Consensus Estimate for earnings in each of the last four quarters, with the average being 21%. REVG’s shares have surged 138.1% in a year.
Evercore: Based in New York, Evercore is a premier global independent investment banking advisory firm. The Zacks Consensus Estimate for 2025 earnings of EVR indicates 34.5% growth. It has a VGM Score of B.
Notably, over the past 60 days, the Zacks Consensus Estimate for EVR’s 2025 earnings has moved up 11%. It beat the Zacks Consensus Estimate for earnings in each of the last four quarters, with the average being 44.1%. Evercore’s shares have soared 43.6% in a year.
Visteon: It is a global leader in automotive cockpit electronics, offering advanced displays, infotainment, telematics and connected car solutions. Over the past 60 days, the Zacks Consensus Estimate for Visteon’s 2025 earnings has moved up 14.5%. Headquartered in Van Buren, MI, it has a VGM Score of A.
The firm has a market capitalization of $3.5 billion. Visteon beat the Zacks Consensus Estimate for earnings in each of the last four quarters, with the average being 54.2%. VC’s shares have gained 39.9% in a year.
Zumiez: It is one of the leading global lifestyle retailers operating under the banners of Zumiez, Fast Times and Blue Tomato. Headquartered in Lynnwood, WA, Zumiez has a market capitalization of $360 million. The company has a VGM Score of A.
The Zacks Consensus Estimate for ZUMZ’s fiscal 2026 earnings per share indicates 566.7% year-over-year growth. Over the past 60 days, the Zacks Consensus Estimate for its fiscal 2026 earnings has moved up 162.5%. Zumiez’s shares have lost 9.2% 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.
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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: https://www.zacks.com/performance.
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This article originally published on Zacks Investment Research (zacks.com).
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