U.S. stock markets have witnessed an impressive rally since the beginning of 2023 barring some minor hurdles. Year to date, the three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — have advanced 13.8%, 26%, and 33.9%, respectively.
However, Wall Street is facing volatility in the second half of December. These disturbances occurred after the Fed indicated two rate cuts in 2025 instead of four expected in September. 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 — Private Bancorp of America, Inc. PBAM, DXP Enterprises Inc. DXPE, Qifu Technology Inc. QFIN, Carriage Services Inc. CSV and Universal Technical Institute Inc. UTI.
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: 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 just 5.
Let’s discuss five out of these 5 stocks:
Private Bancorp of America Inc. provides banking products and services to individuals and businesses in California. PBAM offers checking and savings, money market, certificate of deposit, sweep, zero balance, and individual retirement accounts, unsecured lines of credit, personal credit lines, and term loans, additional services, such as direct deposits, online banking, ATM and debit cards, credit cards, savings/line of credit overdraft protection, and safe deposit boxes, and certificate of deposit account registry services.
The stock price of Private Bancorp of America has surged 15% in the past four weeks. The company has expected earnings growth of 5.6% for next year. The Zacks Consensus Estimate for next-year earnings has improved 5.4% over the last 60 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). DXPE's breadth of MROP products and service solutions allows it to be flexible and customer-driven, creating competitive advantages for our customers. DXPE's business segments include Service Centers, Innovative Pumping Solutions and Supply Chain Services.
The stock price of DXPE has appreciated 12% in the past four weeks. The company has expected earnings growth of 5.9% for next year. The Zacks Consensus Estimate for next- year earnings has improved 11.7% over the last 30 days.
Qifu Technology Inc. operates as a credit-tech platform under the 360 Jietiao brand in the People's Republic of China. QFIN provides credit-driven services that match borrowers with financial institutions to conduct customer acquisition, initial and credit screening, advanced risk assessment, credit assessment, fund matching, and other post-facilitation services and platform services. QFIN also offers e-commerce loans, enterprise loans, and invoice loans to SME owners. QFIN serves financial institutions, consumers, and small- and micro-enterprises.
The stock price of Qifu Technology has advanced 10.6% in the past four weeks. The company has expected earnings growth of 12% for next year. The Zacks Consensus Estimate for next- year earnings has improved 11.3% over the last 30 days.
Carriage Services Inc. is a leading provider of death care services and products in the United States. CSV provides a complete range of services relating to funerals, burials and cremations, including the use of funeral homes and motor vehicles, the performance of cemetery interment services and the management and maintenance of cemetery grounds. CSV also sells related products and merchandise including caskets, burial vaults, garments, cemetery interment rights, stone and bronze memorials, as well as other items.
The stock price of CSV has gained 2.3% in the past four weeks. The company has expected earnings growth of 12.9% for next year. The Zacks Consensus Estimate for next-year earnings has improved 4.4% over the last 60 days.
Universal Technical Institute Inc. provides transportation, skilled trades, and healthcare education programs in the United States. UTI operates in two segments, UTI and Concorde. UTI offers certificate, diploma, or degree programs under various brands, such as Universal Technical Institute, Motorcycle Mechanics Institute, Marine Mechanics Institute, NASCAR Technical Institute, and MIAT College of Technology.
UTI also provides manufacturer-specific advanced training programs, including student-paid electives at its campuses, and manufacturer or dealer-sponsored training at various campuses and dedicated training centers. UTI serves students, partners and communities by providing education and support services in various fields.
The stock price of Universal Technical Institute was up 0.2% in the past four weeks. It has an expected earnings growth rate of 29.3% for the current year (ending September 2025). The Zacks Consensus Estimate for current-year earnings has improved 5.4% over the last 30 days.
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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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