In the world of short-term trading, identifying and capitalizing on trends is crucial for success. However, timing entries and ensuring the sustainability of a trend are key challenges. Often, trends reverse unexpectedly, leading to short-term losses for investors. To mitigate this risk, investors must look beyond simple price action and delve into the fundamentals driving a stock’s momentum.
Our ‘Recent Price Strength’ screen, based on a unique short-term trading strategy, identifies stocks exhibiting strong fundamentals and maintaining recent uptrends. This screen filters for stocks with a solid track record of price increases, trading within the upper portion of their 52-week high-low range, indicating bullish sentiment.
One stock that passed this screen is Great Lakes Dredge & Dock (GLDD), a provider of dredging and dock-contracting services. Here’s why GLDD stands out as a promising ‘trend’ investment:
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Sustained Price Growth:
Over the past 12 weeks, GLDD has experienced a consistent price increase, reflecting investor confidence in its potential upside. The stock has gained 11.6% during this period, demonstrating a clear upward trajectory.*
Recent Momentum:
Looking at the more recent timeframe, GLDD has gained 7.9% over the past four weeks, indicating the trend remains strong. This suggests the stock’s upward momentum hasn’t faltered, making it a promising candidate for continued growth.*
Bullish Price Position:
GLDD is currently trading at 84% of its 52-week high-low range, signifying a potential breakout. The stock’s proximity to its high suggests a strong bullish bias, hinting at potential for further price appreciation.*
Solid Fundamentals:
GLDD currently carries 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. This ranking indicates strong fundamentals and suggests potential for positive near-term price movements. The Zacks Rank system, known for its impressive track record, has a proven history of identifying stocks with high growth potential.*
Broker Optimism:
The brokerage community is highly optimistic about GLDD’s future performance, evidenced by an Average Broker Recommendation of #1 (Strong Buy). This collective positive sentiment further reinforces the strong fundamentals and bullish outlook for the stock.The combination of strong price trends, solid fundamentals, and positive broker recommendations suggests that GLDD’s upward momentum may continue. This makes it a compelling option for investors seeking to capitalize on the current trend.
