The most critical stretch of third-quarter earnings season is in the rearview. Through the bulk of the Q3 reporting cycle (476 S&P 500 members) total earnings jumped 8.1% on 5.5% higher sales, blowing away Q3 estimates of roughly 3.3% growth.
Looking ahead, Q4 earnings are projected to pop 7.7% on 4.9% higher revenue, based on the most recent Zacks estimates.
The overall market and plenty of big tech stocks such as Nvidia have cooled off following their post-Trump election rally. Yet, the S&P 500 and the Nasdaq are trading near their all-time highs to close November.
This backdrop is bullish for stocks heading into a historically strong period for the market in December and January.
Today we explore a screen that helps investors find soaring stocks trading near fresh highs that are also experiencing impressive upward earnings revisions, helping them earn Zacks Rank #1 (Strong Buys).
The stocks we learn to search for today might be worth buying heading into December and 2025.
Screen Basics
The screen we are looking into today comes loaded with the Research Wizard. The screen helps investors dig through all of the Zacks Rank #1 (Strong Buy) stocks, of which there are over 200 at any given time, to find some of the top momentum names.
The screen narrows down the list of Zacks Rank #1 (Strong Buy) stocksto those with upward price momentum that are also trading within 20% of their 52-week highs.
The screen then uses the PEG ratio and the Price to Sales ratio to help make sure investors are getting value as well. The screen then makes your life a little easier and narrows it down to just seven stock picks.
The screen basics are listed below…
· Zacks Rank = #1 (Strong Buy)
· Current Price/52-week High >= 0.8
· PEG Ratio: P/E F(1)/EPS Growth <= 1
· Price/Sales <= 3
· Percentage Change Price -12 Weeks = Top # 7
This strategy comes loaded with the Research Wizard and it is called bt_sow_momentum_method1 It can be found in the SoW (Screen of the Week) folder.
The screen is pretty simple, yet powerful. Here is one of the seven stocks that made it through this week's screen…
Is Soaring Raymond James Financial Stock a Great Buy and Hold Investment?
Raymond James Financial, Inc. RJFis a diversified financial services firm. RJF’s portfolio spans private client group, capital markets, asset management, banking, and other offerings, with options for individuals, corporations, and municipalities.
Raymond James Financial’s Private Client Group segment contributed 66% of net revenues in fiscal 2024, while Capital Markets made up 11%, Banking accounted for around 13%, and Asset Management pulled in roughly 8%.
Raymond James Financial’s PCG segment remains one of its best performers, with net revenues posting a compound annual growth rate of 12.7% over the last three fiscal years (2021-2024).
Raymond James has completed several deals over the past few years, helping the financial services giant expand into Europe and Canada.
Zacks Investment Research
Image Source: Zacks Investment Research
Raymond James Financial crushed our Q4 FY24 earnings estimate in late October. The financial services company’s improved earnings outlook helps it earn a Zacks Rank #1 (Strong Buy).
RJF is projected to grow its adjusted EPS by 8% in FY25 and 6% in FY26, boosted by 10% and 6%, respective sales expansion. RJF’s growth outlook extends its impressive run of top and bottom-line expansion.
RJF stock has ripped 60% higher in the past 12 months to nearly double the Zacks Finance sector. The recent success is part of a stellar 940% surge during the last 15 years to below away its sector’s 150% and the S&P 500’s 460%.
Despite crushing its sector, Raymond James Financial trades at a 14% discount at 15.3X forward 12-month earnings. RJF’s 1.1% dividend yield is a bonus for the market and sector-topping stock.
Get the rest of the stocks on this list and start looking for the newest companies that fit these criteria. It's easy to do. And it could help you find your next big winner. Start screening for these companies today with a free trial to the Research Wizard. You can do it.
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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: www.zacks.com/performance_disclosure
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