While “the trend is your friend” in short-term investing, identifying the right time to jump on board is crucial. Ensuring a trend’s sustainability isn’t always easy, as reversals can occur, leading to losses. To make a profitable trade, investors should look for strong fundamentals, positive earnings estimates, and other factors that fuel momentum.
For investors looking to capitalize on stocks experiencing upward movement, Zacks’ “Recent Price Strength” screen can be a valuable tool. This screen identifies stocks on an uptrend, supported by strong fundamentals, and trading near the upper end of their 52-week high-low range – a common indicator of bullish sentiment.
Advantest Corp. (ATEYY) is one such stock that meets these criteria. Here’s why it stands out as a strong choice for trend investing:
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Impressive Price Performance:
ATEYY has witnessed a solid 25.5% price increase over the past 12 weeks, demonstrating investor confidence in its potential.*
Sustained Momentum:
The stock’s recent performance isn’t just a short-term blip. It has also gained 2.5% in the last four weeks, confirming the persistence of the upward trend.*
Breakout Potential:
Currently trading at 82.4% of its 52-week high-low range, ATEYY is positioned for a potential breakout.*
Strong Fundamentals:
ATEYY boasts a Zacks Rank #2 (Buy), placing it among the top 20% of over 4,000 stocks ranked based on earnings estimate revisions and EPS surprises – key factors influencing near-term price movements.*
Positive Broker Sentiment:
The stock’s Average Broker Recommendation of #1 (Strong Buy) highlights the brokerage community’s optimism about its near-term performance.This combination of strong price momentum and robust fundamentals suggests that the trend in ATEYY may continue.
