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5 Best Stocks With Relative Price Strength to Buy Right Now
Read MoreHide Full Article
Key Takeaways
{\"0\":\"Stocks like B, TREE, and RIGL are outperforming the S&P 500 across 1, 4, and 12-week periods.\",\"1\":\"These picks also show upward earnings revisions and strong VGM Scores of A or B.\",\"2\":\"Standouts include RIGL,with 198.1% stock gain and TREE\'s 70.8% average earnings surprise.\"}
After a strong run last month, U.S. stocks have hit a patch of turbulence. Tariff headlines, including sweeping new levies on key partners and chip imports, spooked markets and pushed the S&P 500 to its biggest loss in months. Job growth in July fell far short of expectations, and that of previous months was revised sharply lower. Yet, the weakness is fueling rate-cut hopes, with traders now pricing in a 92% chance of a Fed cut in September—a move that could support equity markets.
Despite the recent pullback, investor sentiment hasn't turned bearish. Negotiations with major trading partners are still underway, and potential breakthroughs could calm tariff jitters. Lower interest rates, coupled with easing inflation fears, set the stage for a recovery. In this uncertain but promising environment, focusing on relative price strength is a smart move — helping investors find the stocks best positioned to lead the next leg higher.
At this stage, investors would be wise to consider stocks such as Barrick Mining Corporation (B - Free Report) (B - Free Report) , LendingTree (TREE - Free Report) , Mercury General Corporation (MCY - Free Report) , Rigel Pharmaceuticals (RIGL - Free Report) and Levi Strauss & Co. (LEVI - Free Report) 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 five of the 22 stocks that made it through the screen:
Barrick Mining Corporation: Based in Toronto, Canada, it is among the largest gold mining companies in the world. Barrick’s expected EPS growth rate for three to five years is currently 33.5%, which compares favorably with the industry's growth rate of 28.4%. The company has a VGM Score of A.
The Zacks Consensus Estimate for Barrick’s 2025 earnings per share indicates 55.6% year-over-year growth. Over the past 60 days, the Zacks Consensus Estimate for its 2025 earnings has moved up from $1.76 per share to $1.96. B shares have gained 32.5% in a year.
LendingTree: Based in Charlotte, NC, it is an online platform that connects borrowers and lenders. The Zacks Consensus Estimate for 2025 earnings of LendingTree indicates 45.1% growth. The company has a VGM Score of B.
LendingTree beat the Zacks Consensus Estimate for earnings in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 70.8%, on average. The company has a market capitalization of $742.6 million. LendingTree’s shares have gone up 25.5% in a year.
Mercury General Corporation: Based in Los Angeles, CA and founded in 1961, Mercury General is a leading provider of personal automobile insurance. The company has a market capitalization of $4 billion. Mercury General has a VGM Score of A.
Over the past 60 days, the Zacks Consensus Estimate for the company’s 2025 earnings has surged 1,000%. Mercury General beat the Zacks Consensus Estimate for earnings in three of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 166%, on average. The firm’s shares are up 16.4% in a year.
Rigel Pharmaceuticals: It is a clinical-stage company dedicated to discovering and developing innovative small-molecule drugs. RIGL’s focus spans inflammatory diseases, cancer and viral infections. The Zacks Consensus Estimate for 2025 earnings of Rigel Pharmaceuticals indicates 170.7% growth. Headquartered in South San Francisco, CA, RIGL has a VGM Score of A.
The firm has a market capitalization of $532.8 million. Rigel Pharmaceuticals beat the Zacks Consensus Estimate for earnings in each of the last four quarters, with the average being 1,840.5%. RIGL shares have increased 198.1% in a year.
Levi Strauss & Co.: It is a global apparel company that designs, sources and markets a range of products. Headquartered in San Francisco, CA, Levi Strauss has a market capitalization of $8.1 billion. The company has a VGM Score of A.
The Zacks Consensus Estimate for Levi Strauss’ fiscal 2025 earnings per share indicates 4% year-over-year growth. Over the past 60 days, the Zacks Consensus Estimate for its fiscal 2025 earnings has moved up 5.7%. Levi Strauss’ shares have gained 15% 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.
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.
Image: Bigstock
5 Best Stocks With Relative Price Strength to Buy Right Now
Key Takeaways
After a strong run last month, U.S. stocks have hit a patch of turbulence. Tariff headlines, including sweeping new levies on key partners and chip imports, spooked markets and pushed the S&P 500 to its biggest loss in months. Job growth in July fell far short of expectations, and that of previous months was revised sharply lower. Yet, the weakness is fueling rate-cut hopes, with traders now pricing in a 92% chance of a Fed cut in September—a move that could support equity markets.
Despite the recent pullback, investor sentiment hasn't turned bearish. Negotiations with major trading partners are still underway, and potential breakthroughs could calm tariff jitters. Lower interest rates, coupled with easing inflation fears, set the stage for a recovery. In this uncertain but promising environment, focusing on relative price strength is a smart move — helping investors find the stocks best positioned to lead the next leg higher.
At this stage, investors would be wise to consider stocks such as Barrick Mining Corporation (B - Free Report) (B - Free Report) , LendingTree (TREE - Free Report) , Mercury General Corporation (MCY - Free Report) , Rigel Pharmaceuticals (RIGL - Free Report) and Levi Strauss & Co. (LEVI - Free Report) 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 five of the 22 stocks that made it through the screen:
Barrick Mining Corporation: Based in Toronto, Canada, it is among the largest gold mining companies in the world. Barrick’s expected EPS growth rate for three to five years is currently 33.5%, which compares favorably with the industry's growth rate of 28.4%. The company has a VGM Score of A.
The Zacks Consensus Estimate for Barrick’s 2025 earnings per share indicates 55.6% year-over-year growth. Over the past 60 days, the Zacks Consensus Estimate for its 2025 earnings has moved up from $1.76 per share to $1.96. B shares have gained 32.5% in a year.
LendingTree: Based in Charlotte, NC, it is an online platform that connects borrowers and lenders. The Zacks Consensus Estimate for 2025 earnings of LendingTree indicates 45.1% growth. The company has a VGM Score of B.
LendingTree beat the Zacks Consensus Estimate for earnings in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 70.8%, on average. The company has a market capitalization of $742.6 million. LendingTree’s shares have gone up 25.5% in a year.
Mercury General Corporation: Based in Los Angeles, CA and founded in 1961, Mercury General is a leading provider of personal automobile insurance. The company has a market capitalization of $4 billion. Mercury General has a VGM Score of A.
Over the past 60 days, the Zacks Consensus Estimate for the company’s 2025 earnings has surged 1,000%. Mercury General beat the Zacks Consensus Estimate for earnings in three of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 166%, on average. The firm’s shares are up 16.4% in a year.
Rigel Pharmaceuticals: It is a clinical-stage company dedicated to discovering and developing innovative small-molecule drugs. RIGL’s focus spans inflammatory diseases, cancer and viral infections. The Zacks Consensus Estimate for 2025 earnings of Rigel Pharmaceuticals indicates 170.7% growth. Headquartered in South San Francisco, CA, RIGL has a VGM Score of A.
The firm has a market capitalization of $532.8 million. Rigel Pharmaceuticals beat the Zacks Consensus Estimate for earnings in each of the last four quarters, with the average being 1,840.5%. RIGL shares have increased 198.1% in a year.
Levi Strauss & Co.: It is a global apparel company that designs, sources and markets a range of products. Headquartered in San Francisco, CA, Levi Strauss has a market capitalization of $8.1 billion. The company has a VGM Score of A.
The Zacks Consensus Estimate for Levi Strauss’ fiscal 2025 earnings per share indicates 4% year-over-year growth. Over the past 60 days, the Zacks Consensus Estimate for its fiscal 2025 earnings has moved up 5.7%. Levi Strauss’ shares have gained 15% 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.
Click here to sign up for a free trial to the Research Wizard today
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.