When it comes to short-term investing or trading, the adage “the trend is your friend” holds true. Identifying and capitalizing on trends is a highly effective strategy for generating profits. However, ensuring the sustainability of a trend can be challenging, as reversals often occur before investors can exit their positions, leading to short-term losses. To mitigate this risk, investors should focus on stocks with sound fundamentals, positive earnings estimates, and other factors that support the momentum.
For investors seeking stocks on the move, Zacks’ “Recent Price Strength” screen is a valuable tool. This screen identifies stocks exhibiting an uptrend backed by solid fundamentals, and trading within the upper portion of their 52-week high-low range, a strong indicator of bullishness. Sensus Healthcare, Inc. (SRTS) is one such stock that has passed this screen.
Here are the key reasons why SRTS is a compelling choice for trend-focused investors:
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Consistent Price Increase:
SRTS has experienced a steady price increase over the past 12 weeks, demonstrating continued investor demand. The stock has gained 6.6% during this period. This positive trend, however, should be considered in conjunction with shorter-term price movements to assess the potential for reversal.*
Sustained Trend:
SRTS has maintained its upward trend over the past four weeks, with a price increase of 3.4%, further indicating a positive momentum. This recent performance is crucial for confirming the stock’s upward trajectory.*
Breakout Potential:
SRTS is currently trading at 86.6% of its 52-week High-Low Range, suggesting a potential breakout in the near future. This proximity to its high point indicates a strong demand for the stock.*
Solid Fundamentals:
SRTS carries a Zacks Rank #2 (Buy), signifying its position among 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, with its impressive track record, utilizes four factors related to earnings estimates to categorize stocks into five groups, from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell). Historically, Zacks Rank #1 stocks have generated an average annual return of +25% since 1988.*
Strong Analyst Sentiment:
SRTS boasts an Average Broker Recommendation of #1 (Strong Buy), reflecting a high level of optimism among analysts regarding the stock’s near-term price performance. This positive sentiment adds further weight to the bullish outlook for SRTS.The combination of strong price momentum, solid fundamentals, and favorable analyst sentiment suggests that the price trend in SRTS may continue for the foreseeable future. This makes SRTS a compelling opportunity for investors seeking to capitalize on current market trends.
