Can These 5 Relative Price Strength Stocks Lead in 2026?

U.S. stocks are heading toward the end of the year with clear momentum, as the major indexes continue to hover near record levels. While short-term pauses have appeared, they have been shallow, suggesting that investors are positioning for a constructive finish to the year and a positive handoff into the new one. Leadership from innovation-led names and steady participation across sectors have kept the broader trend firmly intact.

Recent labor and economic updates have given a mixed but reassuring picture. Jobs growth has cooled in parts of the economy, while revisions point to a gradual slowdown rather than a sharp break. That combination strengthens the view that policymakers may lean more toward supporting employment as the calendar turns, which markets typically welcome during year-end and early-year transitions.

As investors look ahead to the new year, relative price strength stands out as a practical strategy. Stocks already outperforming during the year-end often become next year’s leaders, making strength a reliable signal in this phase.

At this stage, investors would be wise to consider stocks such as Commercial Metals Company CMC, Illumina ILMN, Kinross Gold KGC, Las Vegas Sands LVS and Hamilton Insurance Group HG based on their relative price strength.

Relative Price Strength Strategy

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.

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 five of the 17 stocks that made it through the screen:

Commercial Metals Company: It manufactures, recycles and markets steel and metal products, related materials and services. The Zacks Consensus Estimate for fiscal 2026 earnings of the company indicates 95.9% growth. Headquartered in Irving, TX, CMC has a VGM Score of A.

The firm has a market capitalization of $7.9 billion. Notably, over the past 60 days, the Zacks Consensus Estimate for Commercial Metals’ fiscal 2026 earnings has moved up 24.3%. CMC’s shares have gained 38.7% in a year.

Illumina: It provides sequencing and array-based solutions for genetic and genomic analysis across a wide range of markets. The Zacks Consensus Estimate for 2025 earnings of Illumina indicates 92.2% growth. The company has a VGM Score of B.

Over the past 60 days, the Zacks Consensus Estimate for Illumina’s 2025 earnings has moved up 4.7%. The company has a market capitalization of $20.6 billion. ILMN shares have edged down 1.8% in a year.

Kinross Gold: Based in Canada, is involved in the exploration and operation of gold mines. Kinross Gold’s expected EPS growth rate for three to five years is currently 40.8%, which compares favorably with the industry's growth rate of 37.2%. The company has a VGM Score of A.

The Zacks Consensus Estimate for Kinross Gold’s 2025 earnings per share indicates 147.1% year-over-year growth. Over the past 60 days, the Zacks Consensus Estimate for its 2025 earnings has moved up from $1.41 per share to $1.68. KGC shares have gone up 208% in a year.

Las Vegas Sands: Based in Las Vegas, NV, it is a leading international developer of multi-use integrated resorts primarily operating in the United States and Asia. Las Vegas Sands has a market capitalization of $45.3 billion. It has a VGM Score of B.

Notably, over the past 60 days, the Zacks Consensus Estimate for Las Vegas Sands’ 2025 earnings have moved up 10.1%. The Zacks Consensus Estimate for 2025 earnings of LVS indicates 30% growth. Las Vegas Sands shares have gained 32% in a year.

Hamilton Insurance Group: Based in Pembroke, Bermuda, the company is a specialty insurer and reinsurer operating worldwide through wholly owned units. Hamilton Insurance Group has a market capitalization of $2.8 billion. It has a VGM Score of A.

Notably, over the past 60 days, the Zacks Consensus Estimate for HG’s 2025 earnings has moved up 18.5%. It beat the Zacks Consensus Estimate for earnings in three of the last four quarters and missed in the other, with the average being 289.1%. Hamilton Insurance Group’s shares have gone up 50.9% 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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