When it comes to short-term investing, the saying “the trend is your friend” holds true. Identifying sustainable trends is key to profiting in this arena, but it’s not always easy. Trends can reverse unexpectedly, leading to losses. To ensure profitable trades, investors should look beyond just price action and consider fundamental factors like strong earnings estimates and positive company news.
Our “Recent Price Strength” screen, based on a unique short-term trading strategy, can help investors identify stocks with the potential to maintain their upward momentum. This screen filters for stocks with strong fundamentals and those trading in the upper portion of their 52-week range, a bullish indicator.
StoneX Group Inc. (SNEX) is one such stock that passed through this screen. Here’s a closer look at why SNEX presents an attractive opportunity for trend-following investors:
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Sustained Price Momentum:
SNEX has exhibited a solid price increase over the past 12 weeks, indicating sustained investor interest and a belief in its potential upside. The stock has gained 7.5% during this period.*
Recent Price Strength:
More importantly, SNEX has shown a 1.8% price increase over the past four weeks, confirming that the upward trend remains intact.*
Breakout Potential:
SNEX is currently trading at 85.8% of its 52-week high-low range, suggesting a potential breakout.*
Strong Fundamentals:
SNEX boasts a Zacks Rank #2 (Buy), placing it in the top 20% of over 4,000 stocks. The Zacks Rank system, based on earnings estimate revisions and earnings per share (EPS) surprises, is a reliable indicator of a stock’s short-term price movements. The Zacks Rank #2 rating signals strong fundamental strength.*
Positive Broker Sentiment:
The stock also enjoys an Average Broker Recommendation of #1 (Strong Buy), indicating high optimism from the brokerage community regarding its near-term performance.The combination of SNEX’s positive price trend and strong fundamentals suggests that its upward momentum could continue. Investors looking to capitalize on short-term trends should consider adding SNEX to their watchlist.
