U.S. stock markets have started 2026 on a positive note. All three major stock indexes are trading in positive territory. The fourth-quarter 2025 earnings season has been projected to remain strong. The Fed is likely to keep the current lending rate range intact in January.
At this stage, a handful of stocks have shown price strength. We have primarily targeted stocks that have recently been on a bull run. These stocks have a high chance of carrying the momentum forward.
Five such stocks are — RF Industries Ltd. RFIL, Betterware de México S.A.P.I. de C.V. BWMX, Forum Energy Technologies Inc. FET, Krystal Biotech Inc. KRYS and Mama's Creations Inc. MAMA.
If a stock is continuously witnessing an uptrend, there must be a solid reason or it would have probably crashed. So, looking at stocks capable of beating the benchmark that they have set for themselves seems rational.
However, recent price strength alone cannot create magic. Therefore, other relevant parameters are needed to create a successful investment strategy.
Here’s how you should create the screen to shortlist the current as well as the potential winners.
Screening Parameters:
Percentage Change in Price (4 Weeks) greater than zero: This criterion shows that the stock has moved higher in the last four weeks.
Percentage Change Price (12 Weeks) greater than 10: This indicates that the stock has seen momentum over the last three months. This lowers the risk of choosing stocks that may have drawn attention due to the overwhelming performance of the overall market in a very short period.
Zacks Rank 1: No matter whether market conditions are good or bad, stocks with a Zacks Rank #1 (Strong Buy) have a proven history of outperformance. You can see the complete list of today’s Zacks #1 Rank stocks here.
Average Broker Rating 1: This indicates that brokers are also highly hopeful about the stock’s future performance.
Current Price greater than 5: The stocks must all be trading at a minimum of $5.
Current Price/ 52-Week High-Low Range more than 85%: This criterion filters stocks that are trading near their respective 52-week highs. It indicates that these are strong enough in terms of price.
Just these few criteria narrowed down the search from over 7,700 stocks to 11.
Let’s discuss five out of those 11 stocks here:
RF Industries is engaged in the design, manufacture and distribution of coaxial connectors used in radio communications applications as well as in computers, test instruments, PC LANs and antenna devices.
The stock price of RFIL has soared 79.6% over the past four weeks. It has an expected earnings growth rate of 7.5% for the current year (ending October 2026). The Zacks Consensus Estimate for current-year earnings has improved 22.9% over the last 30 days.
Betterware de México is a direct-to-consumer selling company principally in Mexico. BWMX is primarily focused on the home organization and solutions segment. BWMX’s product portfolio includes home organization, kitchen preparation, food containers, smart furniture, technology and mobility, as well as other minor categories.
The stock price of BWMX has jumped 32.7% over the past four weeks. It has an expected earnings growth rate of 44.4% for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 0.6% over the last seven days.
Forum Energy Technologies is a global oilfield products company, serving the subsea, drilling, completion, production and infrastructure sectors of the oil and natural gas industry. FET designs and manufactures products, and engages in aftermarket services, parts supply and related services that complement the company's product offering.
The stock price of FET has climbed 17.9% over the past four weeks. It has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 10.8% over the last 60 days.
Krystal Biotech’s lead drug, Vyjuvek — the first-ever gene therapy for treating patients aged six months or older with dystrophic epidermolysis bullosa — has witnessed strong uptake since its launch. The recent approval in additional geographies (the EU and Japan) should boost sales.
Additionally, KRYS is advancing a robust pipeline of investigational genetic medicines in the fields of respiratory, oncology, dermatology, ophthalmology and aesthetics. The recent pipeline progress is encouraging and the successful development of any of these pipeline candidates will diversify the revenue stream.
The stock price of KRYS has surged 10.5% over the past four weeks. The company has expected earnings growth of 31.6% for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 1.8% over the last 30 days.
Mama's Creations is a marketer and manufacturer of fresh deli prepared foods that serves grocery, mass, club and convenience stores. MAMA sells its products directly to supermarkets, club chains, mass-market retailers, food retailers and distributors, as well as through its website.
The stock price of MAMA has advanced 9.5% over the past four weeks. The company has expected earnings growth of 84.6% for the current year (ending January 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 4.3% over the last 60 days.
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Forum Energy Technologies, Inc. (FET): Free Stock Analysis Report Krystal Biotech, Inc. (KRYS): Free Stock Analysis Report RF Industries, Ltd. (RFIL): Free Stock Analysis Report Betterware de Mexico SAPI de C (BWMX): Free Stock Analysis Report Mama's Creations, Inc. (MAMA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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