4 Relative Price Strength Picks for Today's Stock Market
The U.S. stock market seems to be heading in a positive direction, but it’s likely to be a bumpy ride. The Federal Reserve’s decision to leave interest rates as they are suggests that inflation is still a worry, especially with oil prices going up because of tensions between countries. However, investors aren’t getting overly cautious just yet. The S&P 500 has bounced back strongly from its low point in late March, and people are feeling more optimistic, but not to the point where the market is getting too hot.
One important thing that’s helping stocks right now is how well companies are doing with their earnings, especially when it comes to spending on artificial intelligence (AI). The big tech companies are still doing a great job of making money, and AI is becoming a really important area for growth in the market. But even with all this, it’s possible that the market will start to favor picking and choosing specific stocks to invest in, rather than just investing in everything and hoping for the best.
Against this backdrop, relative price strength looks like a sensible strategy. Investors can focus on stocks and sectors already showing leadership, backed by stronger earnings trends and resilient demand.
At this stage, investors would be wise to consider companies such as Kaiser Aluminum Corporation KALU, Seanergy Maritime Holdings Corp. SHIP, Monarch Casino & Resort, Inc. MCRI and Universal Logistics Holdings, Inc. ULH.
Relative Price Strength Strategy
Investors generally gauge a stock’s potential returns by examining earnings growth and valuation multiples. At the same time, it’s essential to measure the performance of such a stock relative to its industry, peers, or an appropriate benchmark.
If you see that a stock is underperforming on fundamental factors, it would be prudent to move on and find a better alternative. However, those outperforming their respective sectors in terms of price should be selected because they stand a better chance of providing considerable returns.
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 the best way 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 four of the seven stocks that made it through the screen:
Kaiser Aluminum Corporation: Based in Franklin, TN, it is a leading North American specialty aluminum products maker, serving aerospace, packaging, general engineering and automotive markets with 13 facilities, strong customer ties and a focus on sustainable, profitable growth. Over the past 60 days, the Zacks Consensus Estimate for Kaiser Aluminum’s 2026 earnings has moved up 7.1%. The company has a VGM Score of B.
Kaiser Aluminum beat the Zacks Consensus Estimate for earnings in three of the last four quarters and missed in the other. It has a trailing four-quarter earnings surprise of roughly 93.9%, on average. KALU shares have risen 159% in a year.
Seanergy Maritime Holdings: It is a Nasdaq-listed pure-play Capesize shipping company with a 3.5-million-DWT fleet, strong charterer ties, experienced leadership, and a focus on fleet efficiency, ESG discipline, and shareholder returns. The Zacks Consensus Estimate for 2026 earnings of Seanergy Maritime Holdings indicates 63.3% growth. SHIP has a VGM Score of A.
The firm has a market capitalization of around $310 million. Over the past 60 days, the Zacks Consensus Estimate for Seanergy Maritime Holdings’ 2026 earnings has gone up 11.8%. SHIP’s shares have gained 161.8% in a year.
Monarch Casino & Resort: It operates premium gaming and hospitality properties in Reno and Black Hawk. With strong assets, a debt-free balance sheet, steady investments, and market growth, it is positioned for continued expansion. The Zacks Consensus Estimate for 2026 earnings of Monarch Casino & Resort indicates 19.3% growth. MCRI has a VGM Score of B.
Over the past 60 days, the Zacks Consensus Estimate for Monarch Casino & Resort’s 2026 earnings has moved up 8.9%. The company has a market capitalization of $2.1 billion. MCRI shares have gone up 52.6% in a year.
Universal Logistics Holdings: Headquartered in Warren, MI, the company provides tailored transportation and logistics solutions across the United States, Mexico and Canada. Universal Logistics Holdings’ subsidiaries support supply chains with contract logistics, intermodal, trucking and dedicated services, helping customers scale, cut costs and improve operations. The Zacks Consensus Estimate for 2026 earnings of the company indicates 1,866.7% growth. ULH has a VGM Score of B.
Universal Logistics Holdings has a market capitalization of $641.1 million. Over the past 60 days, the Zacks Consensus Estimate for ULH’s 2026 earnings has moved up 15.2%. Universal Logistics Holdings shares have gained 7.7% in a year.
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Monarch Casino & Resort, Inc. (MCRI) : Free Stock Analysis Report
Kaiser Aluminum Corporation (KALU) : Free Stock Analysis Report
Seanergy Maritime Holdings Corp (SHIP) : Free Stock Analysis Report
Universal Logistics Holdings, Inc. (ULH) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).