When it comes to short-term investing or trading, the adage ‘the trend is your friend’ holds true. However, timing your entry into the trend is crucial for success. Increasing your odds of success requires careful consideration of the trend’s sustainability, which is not always easy. Stock prices can reverse quickly after taking a position, leading to short-term losses. To mitigate this risk, it’s essential to identify stocks with strong fundamentals, such as positive earnings estimate revisions, that can sustain momentum.
For investors seeking to profit from stocks on the move, the ‘Recent Price Strength’ screen can be a valuable tool. This screen helps identify stocks that are trending upwards, backed by strong fundamentals and trading near the upper end of their 52-week high-low range – a bullish indicator. One such candidate that meets these criteria is Great Lakes Dredge & Dock (GLDD).
Here’s why GLDD stands out as a potential profitable bet for trend investors:
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Consistent Price Increase:
GLDD has shown consistent price appreciation, gaining 8.3% over the past 12 weeks. This reflects investors’ continued confidence in the stock’s potential for growth.*
Sustained Uptrend:
While a three-month price change is important, it’s equally crucial to assess if the trend has held in the short term. GLDD has shown a 7% price increase over the past four weeks, confirming a sustained uptrend.*
Approaching Breakout:
GLDD is currently trading at 97.6% of its 52-week high-low range, indicating it’s approaching a breakout point. This suggests strong potential for further price gains.*
Strong Fundamentals:
GLDD 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. This ranking reflects its strong fundamental position and suggests positive near-term price performance. The Zacks Rank system has a proven track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988.*
Broker Confidence:
GLDD also receives an Average Broker Recommendation of #1 (Strong Buy), indicating high optimism from the brokerage community regarding its near-term price performance.The combination of a strong price trend, positive fundamentals, and a favorable outlook from analysts suggests that GLDD’s uptrend is likely to continue. These factors make it a compelling opportunity for trend investors looking to capitalize on momentum.
