When it comes to short-term investing or trading, the phrase “the trend is your friend” rings true. However, timing your entry into a trend is crucial for success. Identifying sustainable trends that won’t reverse prematurely is the key to maximizing your returns.
To make a profitable trade, you should look for factors that signal continued momentum, such as strong fundamentals, positive earnings estimate revisions, and other indicators of bullish sentiment. For investors seeking stocks on the move, our “Recent Price Strength” screen can be invaluable. This screen helps you spot stocks that are trending upward, supported by strong fundamentals and trading near the upper end of their 52-week high-low range, a classic sign of bullishness.
Northrim BanCorp (NRIM) is one such stock that has passed our screening process. Let’s examine why it’s a compelling choice for trend-following investors.
NRIM’s price has exhibited consistent upward momentum over the past 12 weeks, increasing by 26.4%. This sustained price increase reflects investors’ confidence in the stock’s future potential. However, looking at a longer timeframe alone isn’t enough. It’s essential to ensure the trend hasn’t reversed in the shorter term. NRIM maintains its upward trajectory, as evidenced by a 5.7% price increase in the past four weeks. Moreover, it’s currently trading at 85.2% of its 52-week High-Low Range, suggesting it could be on the cusp of a breakout.
Beyond the price trend, NRIM’s fundamentals offer further reassurance. It 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 short-term price movements. The Zacks Rank system has a proven track record, with Zacks Rank #1 stocks delivering an average annual return of +25% since 1988.
Adding to NRIM’s attractiveness, the stock has an Average Broker Recommendation of #1 (Strong Buy), indicating that the brokerage community holds high optimism about its near-term price performance. This further supports the notion that the current price trend in NRIM is unlikely to reverse anytime soon.
With its strong price momentum, robust fundamentals, and positive analyst sentiment, Northrim BanCorp (NRIM) presents an intriguing opportunity for investors looking to capitalize on trending stocks.
