Yahoo Finance Zacks.com featured highlights include Vital, Sprouts Farmers, Royal Caribbean, Agnico and Organon
For Immediate Release
Chicago, IL – May 23, 2024 – Stocks in this week’s article are Vital Farms VITL, Sprouts Farmers Market SFM, Royal Caribbean Cruises RCL, Agnico Eagle Mines Limited AEM and Organon & Co. OGN.
5 Relative Price Strength Stocks with Strong Return Potential
The U.S. economy has been showing remarkable resilience despite interest rates being at a 23-year high. Wall Street rebounded in early May after a sharp decline in April job additions, a significant slowdown in U.S. GDP growth for the first quarter of 2024, last month’s contraction in manufacturing and services PMI, and a less hawkish statement by Fed Chairman Jerome Powell after the May FOMC meeting. The rally gained further momentum after the Department of Labor reported a 0.3% month-over-month increase in the consumer price index (CPI) for April.
Amid these favorable economic indicators, savvy investors are now focusing on relative price performance, strategically identifying and investing in the opportunities for accelerated returns.
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 or 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 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.
Here are five of the 13 stocks that made it through the screen:
Vital Farms: The company collaborates with family farms and specializes in the distribution of pasture-raised eggs, butter, and other related products across the United States. The Zacks Consensus Estimate for 2024 earnings of Vital Farms indicates 59.3% growth. Headquartered in Austin, TX, VITL has a VGM Score of B.
Over the past 30 days, the Zacks Consensus Estimate for 2024 earnings has moved up 22.1%. Vital Farms has a trailing four-quarter earnings surprise of roughly 102.1%, on average. VITL shares have increased 170.7% in a year.
Sprouts Farmers Market: Sprouts Farmers Market operates in the grocery store industry with a unique model that features fresh produce, a foods section, and a vitamin department focused on overall wellness. Over the past 30 days, this Phoenix, AZ-based firm saw the Zacks Consensus Estimate for 2024 move up 5.4%. SFM has a VGM Score of B.
The Zacks Consensus Estimate for 2024 earnings of Sprouts Farmers Market indicates 9.5% growth. The company has a trailing four-quarter earnings surprise of roughly 9.2%, on average. SFM shares have surged 118.2% in a year.
Royal Caribbean Cruises: It is a cruise company whose brands primarily serve the contemporary, premium and deluxe segments. The 2024 Zacks Consensus Estimate for Miami, FL-based RCL indicates 61.9% year-over-year earnings per share growth. Royal Caribbean Group has a VGM Score of A.
Over the past 30 days, RCL saw the Zacks Consensus Estimate for 2024 move up 9.7%. It beat the Zacks Consensus Estimate for earnings in each of the last four quarters, the average being 18.3%. Royal Caribbean Cruises shares have moved up 87.7% in a year.
Agnico Eagle Mines Limited: Based in Toronto, Canada, the company is a gold producer. AEM’s expected EPS growth rate for three to five years is currently 26.6%, which compares favorably with the industry's growth rate of 14.3%. The company has a VGM Score of B.
Notably, the Zacks Consensus Estimate for Agnico Eagle Mines’ 2024 earnings per share indicates 42.2% year-over-year growth. The firm has a market capitalization of $35.4 billion. AEM shares have gone up 31.1% in a year.
Organon & Co.: Based in Jersey City, NJ, the pharmaceutical company offers a portfolio of prescription therapies in the fields of women's health, biosimilars and established medicines. Over the past 30 days, the Zacks Consensus Estimate for 2024 earnings has moved up 4.7%. OGN has a VGM Score of B.
Organon 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 13.6%, on average. OGN shares have gained 5.4% in a year.
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For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2277185/5-relative-price-strength-stocks-with-strong-return-potential
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Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report
Agnico Eagle Mines Limited (AEM) : Free Stock Analysis Report
Sprouts Farmers Market, Inc. (SFM) : Free Stock Analysis Report
Vital Farms, Inc. (VITL) : Free Stock Analysis Report
Organon & Co. (OGN) : Free Stock Analysis Report
