3 Relative Price Strength Leaders That Investors Can't Ignore

The U.S. stock market has been on a remarkable run, with major indexes hitting fresh record highs last week after the Fed delivered its first rate cut of the year. The 25-basis-point reduction, which brought rates down to 4-4.25%, was widely anticipated, but what really fueled optimism was the Fed’s signal of more cuts ahead through 2026 and 2027. That outlook has provided investors with confidence that the monetary policy will remain supportive even as growth slows.

In this kind of environment, relative price strength is a valuable strategy. It helps investors identify the true market leaders — the stocks most likely to continue outpacing the pack.

At this stage, investors would be wise to consider stocks such as Tutor Perini Corporation (TPC), RF Industries, Ltd. (RFIL) and A-Mark Precious Metals, Inc. (AMRK) based on their relative price strength.

Relative Price Strength Strategy

Whether a stock has the potential to offer considerable returns is determined primarily by its earnings and valuation ratios. Simultaneously, it is essential to check whether its price performance exceeds its peers or the industry average.

Upon such comparison, if we find that a stock is unable to match up to wider sectoral growth despite having impressive earnings momentum or valuation multiples, it may be better to avoid it.

However, those outperforming their respective industries or benchmarks should be included in your portfolio since they have a higher chance of securing significant returns. Picking a stock that outperforms its peers ensures a winning option on your hands.

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 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, 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 the three stocks that made it through the screen:

Tutor Perini: It delivers civil, building, and specialty construction services worldwide. Known for handling complex projects, the company provides contracting, design-build, and management solutions for public agencies and private clients. The Zacks Consensus Estimate for 2025 earnings of Tutor Perini indicates 220.8% growth. Headquartered in Los Angeles, CA, TPC has a VGM Score of B.

The firm has a market capitalization of $3.5 billion. Notably, over the past 60 days, the Zacks Consensus Estimate for Tutor Perini’s 2025 earnings has moved up 106.6%. TPC’s shares have surged 153.1% in a year.

RF Industries: Based in San Diego, CA, RF Industries designs and manufactures interconnect products, from coaxial connectors to fiber assemblies, serving telecom, data communications, and industrial markets. The Zacks Consensus Estimate for fiscal 2025 earnings of RFIL indicates 422.2% growth. It has a VGM Score of B.

Notably, over the past 60 days, the Zacks Consensus Estimate for RF Industries’ fiscal 2025 earnings has moved up 20.8%. It beat the Zacks Consensus Estimate for earnings in three of the last four quarters and missed in the other, with the average being 35.4%. RF industries’ shares have soared 132.2% in a year.

A-Mark Precious Metals: It is a full-service trading company dealing in gold, silver, platinum, and palladium. Its offerings span coins, bars, wafers, and customized financial solutions. Headquartered in El Segundo, CA, A-Mark has a market capitalization of $666.3 million. The company has a VGM Score of A.

The Zacks Consensus Estimate for AMRK’s fiscal 2026 earnings per share indicates 58.1% year-over-year growth. Over the past 60 days, the Zacks Consensus Estimate for its fiscal 2026 earnings has moved up 26.1%. A-Mark’s shares have lost 40.3% in a year.

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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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