Wall Street is coming off its best back-to-back years since 1997 and 1998. The outlook for impressive earnings growth and more Fed rate cuts in 2025 offers another bullish backdrop for investors.
Every S&P 500 sector is projected to post earnings growth in 2025 for the first time since 2018.
The bulls held their ground to start January, with buyers stepping up at the Nasdaq’s 50-day moving average.
Given this backdrop, investors likely want to add to their portfolios to start 2025.
Today we explore a screen that helps investors find soaring stocks trading near 52-week highs in early January.
The stocks the screen puts on your radar are also experiencing strong upward earnings revisions activity, earning them Zacks Rank #1 (Strong Buys).
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…
Buy ALK Stock Before It Breaks Out to All-Time Highs After Soaring 75% in 12 Months?
Alaska Air Group ((ALK – Free Report) ) is a Seattle-based airline powerhouse that expanded through its recent acquisition of Hawaiian Airlines. ALK’s Hawaiian Airlines closed in September and helps Alaska Air serve more than 140 destinations throughout North America, Central America, Asia, and across the Pacific.
All in, the company is comprised of Alaska Airlines, Hawaiian Holdings, Inc., Horizon Air, and McGee Air Services.
ALK stock surged 75% in the past 12 months to crush its sector’s 2% decline and double its highly-ranked Transportation – Airline industry. Alaska Air stock is up 740% in the last 15 years even though it has moved roughly sideways for the past decade.
Image Source: Zacks Investment Research
ALK is trading above its 50-month moving average again and it looks ready to possibly fly up to its 2017 peaks. Despite the run and outperformance, Alaska Air trades at a 35% discount to its three-year highs and 30% below its industry at 10.9X forward 12-month earnings.
Alaska Air’s solid value is supported by the fact that it is projected to grow its earnings by 33% in 2025 on the back of 24% higher revenue (following 13% projected sales expansion in 2024).
Alaska Air announced in December that its Hawaiian Airlines deal will “unlock significant short- and long-term value creation to drive double digit margins of 11-13% and EPS to at least $10 by 2027.”
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.
Click here to sign up for a free trial to the Research Wizard today.
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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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