The saying “the trend is your friend” is a key principle in short-term investing and trading. However, ensuring the sustainability of a trend and profiting from it can be challenging. Often, stock prices reverse quickly after taking a position, leading to short-term losses. Therefore, it’s crucial to identify stocks with solid fundamentals and positive indicators to sustain their upward momentum.
Zacks’ “Recent Price Strength” screen, designed for short-term trading strategies, helps identify stocks with the potential to maintain their recent uptrend. This screen filters stocks based on fundamental strength and those trading in the upper portion of their 52-week high-low range, a sign of bullishness.
One stock that has passed this screen is Northrim BanCorp (NRIM), a holding company for Northrim Bank. Here’s why NRIM stands out as a promising choice for trend investors:
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Strong Price Performance:
NRIM has seen a significant price increase of 24.9% over the past 12 weeks, demonstrating investors’ continued confidence in its potential.*
Sustained Upward Trend:
The stock has maintained its upward momentum, with a 3.5% price increase over the past four weeks, indicating a strong trend.*
High Trading Range:
NRIM currently trades at 81.7% of its 52-week high-low range, suggesting it may be nearing a breakout.*
Solid Fundamentals:
NRIM holds a Zacks Rank #2 (Buy), placing it within the top 20% of over 4,000 stocks based on earnings estimate revisions and EPS surprises. The Zacks Rank system, which classifies stocks into five groups based on earnings estimates, has a proven track record, with Zacks Rank #1 stocks averaging a 25% annual return since 1988.*
Brokerage Confidence:
NRIM has an Average Broker Recommendation of #1 (Strong Buy), indicating high optimism from the brokerage community about the stock’s near-term price performance.These factors collectively suggest that NRIM’s upward price trend is likely to continue. With its strong price performance, positive fundamentals, and optimistic outlook, NRIM stands as a compelling choice for investors looking to capitalize on the current market trends.
