April has been a rough ride for the stock market, shaken by broad U.S. tariffs and escalating global trade tensions. With tariffs climbing as high as 145% on imports from major partners like China—and China responding with 84% duties on U.S. products—investors are understandably nervous. Ongoing inflation pressures and worries about a possible recession or stagflation are adding to the uncertainty. As a result, the S&P 500 has slipped into correction territory, down more than 8% for the year.
Investors looking to stay ahead in this environment may want to consider the power of relative price strength. Even during volatile stretches, certain stocks continue to outperform their peers. This strategy—focusing on names that hold up better than the broader market—can help investors stay aligned with underlying momentum. In a choppy market like today’s, that relative strength can be a key to navigating the turbulence and capturing long-term gains.
At this stage, investors would be wise to consider stocks like IHS Holding Limited IHS, Atlanticus Holdings Corporation ATLC, REX American Resources Corporation REX and Fresenius Medical Care AG FMS based on their relative price strength.
Relative Price Strength Strategy
Earnings growth and valuation multiples are indeed important for investors to determine a stock's ability to offer considerable returns. However, these are also essential for determining whether a stock’s price performance is better than its peers or the industry average.
If a stock’s performance is lacking that of the broader groups, despite impressive earnings growth or valuation multiples, then something must be wrong.
It’s always advisable to stay away from these stocks and bet on those that are outperforming their respective industry or benchmark. This is because betting on a winner always proves to be lucrative.
Then again, it is imperative that you determine whether or not an investment has relevant upside potential when considering stocks with significant relative price strength. Stocks delivering better than the S&P 500 for 1 to 3 months, at least, and having solid fundamentals indicate room for growth and are the best ways to go about this strategy.
Finally, it is crucial to find out whether analysts are optimistic about the upcoming earnings of these companies. In order to do this, we have added positive estimate revisions for the current quarter’s (Q1) earnings to our screen. When a stock undergoes an upward revision, it leads to additional price gains.
Screening Parameters
Relative % Price change – 12 weeks greater than 0
Relative % Price change – 4 weeks greater than 0
Relative % Price change – 1 week greater than 0
(We have considered those stocks that have been outperforming the S&P 500 over the last 12 weeks, four weeks and one week.)
% Change (Q1) Est. over 4 Weeks greater than 0: Positive current-quarter estimate revisions over the last four weeks.
Zacks Rank equal to 1: Only Zacks Rank #1 (Strong Buy) stocks — that have returned more than 26% annually over the last 26 years and surpassed the S&P 500 in 23 of the last 26 years — can get through. You can see the complete list of today’s Zacks #1 Rank stocks here.
Current Price greater than or equal to $5 and Average 20-day Volume greater than or equal to 50,000: A minimum price of $5 is a good standard to screen low-priced stocks, while a high trading volume would imply adequate liquidity.
VGM Score less than or equal to B: Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 or 2 (Buy), offer the best upside potential.
Here are the four stocks that made it through the screen:
IHS Holding Limited: Based in London, it is one of the largest independent owners, operators, and developers of shared telecommunications infrastructure globally. The Zacks Consensus Estimate for 2025 earnings of IHS Holding indicates 114.7% growth. The company has a VGM Score of A.
Over the past 60 days, the Zacks Consensus Estimate for IHS Holdings 2025 earnings has moved up 30.9%. The company has a market capitalization of $1.6 billion. IHS shares have gone up 62.7% in a year.
Atlanticus Holdings: Headquartered in Atlanta, GA, this is a fintech company offering credit cards, auto loans, and banking solutions, leveraging data and tech to serve U.S. consumers through its CaaS and Auto Finance segments. The Zacks Consensus Estimate for 2025 earnings for ATLC indicates 29.4% growth. It has a VGM Score of B.
Atlanticus Holdings beat the Zacks Consensus Estimate for earnings in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 11.4%, on average. Atlanticus Holdings shares have jumped 110.5% in a year.
REX American Resources: Based in Dayton, OH, REX American Resources is a Midwest-based ethanol producer with stakes in six plants. It focuses on high-efficiency output and growth, including potential carbon capture initiatives. The company’s current market capitalization is $676.4 million. REX American Resources has a VGM Score of B.
Notably, over the past 60 days, the Zacks Consensus Estimate for REX American Resources’ fiscal 2026 earnings has moved up 15.7%. It beat the Zacks Consensus Estimate for earnings in each of the last four quarters, with the average being 92.8%. REX shares have gone down 31.3% in a year.
Fresenius Medical Care AG: Based in Bad Homburg, Germany, it is one of the largest integrated providers of products and services for individuals undergoing dialysis following chronic kidney failure. The Zacks Consensus Estimate for 2025 earnings of Fresenius Medical Care indicates 27.1% growth. It has a VGM Score of A.
Fresenius Medical Care beat the Zacks Consensus Estimate for earnings in three of the last four quarters and met in the other. It has a trailing four-quarter earnings surprise of roughly 15.7%, on average. FMS shares have risen 31.8% in a year.
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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
