When it comes to short-term investing, identifying and timing entries into strong trends is crucial for success. But ensuring the sustainability of a trend isn’t always straightforward. Often, stock prices can reverse quickly after taking a position, leading to losses. Therefore, investors must consider multiple factors – including sound fundamentals, positive earnings estimates, and other indicators – to determine if a trend is likely to continue.
For investors looking for stocks on the rise, the “Recent Price Strength” screen is a valuable tool. This screen identifies stocks demonstrating upward momentum with strong fundamentals and trading near their 52-week highs. These signals often point to bullish sentiment. Ezcorp (EZPW) is one such stock that has passed this screen, making it a potential candidate for “trend” investing.
Here’s why EZPW stands out:
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Consistent Price Gains:
EZPW has exhibited a solid price increase over the past 12 weeks, indicating continued investor confidence in the stock’s potential upside. Over this period, it has gained 16.7%.*
Sustained Momentum:
A price increase of 4.7% over the past four weeks confirms that the upward trend is still in place for EZPW. This suggests a continued willingness of investors to buy into the stock.*
High Trading Range:
Currently, EZPW is trading at 92.1% of its 52-week High-Low Range, hinting at a potential breakout. This further supports the notion of a strong upward trend.*
Strong Fundamentals:
EZPW boasts a Zacks Rank #2 (Buy), placing it within the top 20% of over 4,000 stocks ranked based on earnings estimate revisions and EPS surprises. These factors are key drivers of near-term price movements. The Zacks Rank system, which categorizes stocks based on earnings estimates, has a proven track record, with Zacks Rank #1 stocks averaging a 25% annual return since 1988.*
Bullish Analyst Sentiment:
Adding to the positive picture, EZPW has an Average Broker Recommendation of #1 (Strong Buy). This indicates a high degree of optimism among the brokerage community regarding the stock’s near-term performance.These combined factors suggest that the upward trend in EZPW may persist for the foreseeable future, making it an attractive option for investors seeking to capitalize on momentum.
