U.S. stock markets have been facing severe volatility since the beginning of 2025. Market participants are concerned about the forward trajectory of both inflation and interest rates. Moreover, treasury yields remain elevated.
The Fed reduced the benchmark lending rate by a significant 1% in 2024. In September, the Fed indicated of another 1% rate cut in 2025. However, a strong U.S. economy, a resilient labor market and sticky inflation have raised concerns about rate cut this year.
Consequently, a few stocks have shown price strength. We have primarily targeted stocks that have recently been on a bull run. Such stocks have a high chance of carrying the momentum forward.
Five such stocks are — OppFi Inc. OPFI, DXP Enterprises Inc. DXPE, Carpenter Technology Corp. CRS, United Airlines Holdings Inc. UAL and Gulfport Energy Corp. GPOR.
If a stock is continuously witnessing an uptrend, there must be a solid reason or it would have probably crashed. So, looking at stocks capable of beating the benchmark that they have set for themselves seems rational.
However, recent price strength alone cannot create magic. Therefore, other relevant parameters are needed to create a successful investment strategy.
Here’s how you should create the screen to shortlist the current as well as the potential winners.
Screening Parameters:
Percentage Change in Price (4 Weeks) greater than zero: This criterion shows that the stock has moved higher in the last four weeks.
Percentage Change Price (12 Weeks) greater than 10: This indicates that the stock has seen momentum over the last three months. This lowers the risk of choosing stocks that may have drawn attention due to the overwhelming performance of the overall market in a very short period.
Zacks Rank 1: No matter whether market conditions are good or bad, stocks with a Zacks Rank #1 (Strong Buy) have a proven history of outperformance. You can see the complete list of today’s Zacks #1 Rank stocks here.
Average Broker Rating 1 or 2: This indicates that brokers are also highly hopeful about the stock’s future performance.
Current Price greater than 5: The stocks must all be trading at a minimum of $5.
Current Price/ 52-Week High-Low Range more than 85%: This criterion filters stocks that are trading near their respective 52-week highs. It indicates that these are strong enough in terms of price.
Just these few criteria narrowed down the search from over 7,700 stocks to 14.
Let’s discuss five out of these 14 stocks:
OppFi Inc. is a tech-enabled specialty finance platform that broadens the reach of community banks to extend credit access to everyday Americans. OPFI supports consumers, who are turned away by mainstream options, to build financial health, through transparency, responsible lending, financial inclusion, and a better customer experience.
The stock price of OppFi has jumped 28.5% in the past four weeks. The company has expected earnings growth of 16.3% for the current year. The Zacks Consensus Estimate for the current year has improved 16.3% over the last 30 days.
DXP Enterprises Inc. is a leading products and service distributor that adds value and total cost savings solutions to industrial customers throughout the United States, Canada, Mexico and Dubai.
DXPE provides innovative pumping solutions, supply chain services and maintenance, repair, operating and production (MROP) services. DXPE's breadth of MROP products and service solutions allows it to be flexible and customer-driven, creating competitive advantages for our customers.
The stock price of DXP Enterprises has climbed 13.6% in the past four weeks. The company has expected earnings growth of 5.9% for the current year. The Zacks Consensus Estimate for the current year has improved 12.2% over the last 60 days.
Carpenter Technology Corp. is engaged in the manufacture, fabrication, and distribution of specialty metals in the United States, Europe, the Asia Pacific, Mexico, Canada, and internationally. CRS operates in two segments, Specialty Alloys Operations and Performance Engineered Products.
CRS offers specialty alloys, including titanium alloys, powder metals, stainless steels, alloy steels, and tool steels, as well as additives, and metal powders and parts. CRS serves the aerospace, defense, medical, transportation, energy, industrial, and consumer markets.
The stock price of Carpenter Technology has surged 10.1% in the past four weeks. It has an expected earnings growth rate of 42.8% for the current year (ending June 2025). The Zacks Consensus Estimate for current-year earnings has improved 0.4% over the last 30 days.
United Airlines Holdings Inc. has been benefiting from swelling passenger volumes in the post-pandemic period. UAL's ability to capitalize on strong corporate travel volumes and premium leisure demand is supporting growth. Low fuel costs are aiding UAL’s bottom line. The announcement of the $1.5 billion share buyback plan highlights the carrier's shareholder-friendly approach. This is UAL’s first buyback program since the pandemic.
The stock price of United Airlines Holdings has advanced 9.7% in the past four weeks. It has an expected earnings growth rate of 20.3% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 4.5% over the last seven days.
Gulfport Energy Corp. is engaged in the acquisition, exploration, development, and production of natural gas, crude oil, and natural gas liquids in the United States. GPOR principal properties include Utica and Marcellus in eastern Ohio, and the SCOOP Woodford and Springer formations in central Oklahoma.
The stock price of Gulfport Energy has gained 6.8% in the past four weeks. The company has expected earnings growth of 51% for the current year. The Zacks Consensus Estimate for the current year has improved 3.9% over the last seven days.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance.
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