In the world of short-term investing and trading, “the trend is your friend.” However, timing your entry into a trend is crucial for success. Making sure the trend has staying power is equally important, as trends can reverse unexpectedly, leading to short-term losses. To ensure a profitable trade, it’s vital to consider fundamental factors like solid earnings estimates and positive revisions that can fuel momentum in a stock.
For investors seeking to capitalize on stocks on the move, Zacks’ “Recent Price Strength” screen is a valuable tool. This pre-defined screen identifies stocks that exhibit an uptrend backed by strong fundamentals. These stocks often trade in the upper portion of their 52-week high-low range, signaling bullish sentiment.
One such stock that has passed this screen is Tecnoglass (TGLS). Here’s why TGLS is a compelling choice for trend-focused investors:
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Strong Price Performance:
TGLS has experienced a remarkable 56.6% price increase over the past 12 weeks, reflecting continued investor confidence in the stock’s upside potential. This strong price movement demonstrates a clear upward trend.*
Sustained Momentum:
The price gains haven’t been a flash in the pan. Over the past four weeks, TGLS has surged another 13.4%, indicating that the upward trend remains intact.*
Breakout Potential:
Currently, TGLS trades at 97.1% of its 52-week high-low range. This proximity to the top of its range suggests a potential breakout, which could further fuel the stock’s upward momentum.*
Solid Fundamentals:
TGLS boasts a Zacks Rank #2 (Buy). This ranking places it within the top 20% of over 4,000 stocks evaluated by Zacks. The Zacks Rank system is based on trends in earnings estimate revisions and EPS surprises, key factors that influence a stock’s near-term price movements. The system has a proven track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988.*
Analyst Optimism:
TGLS also receives an Average Broker Recommendation of #1 (Strong Buy). This indicates a high level of optimism from the brokerage community about the stock’s near-term performance.The combination of strong price momentum, fundamental strength, and analyst bullishness suggests that the upward trend in TGLS is likely to continue. This makes TGLS a compelling option for investors looking to capitalize on a strong trend.
