Success in the stock market is less about reinventing the wheel and more about repeating what works. There's no formula out there that is going to work 100% of the time, but there are time-tested strategies that outperform the market year over year. Just by using the Zacks Rank we know that we have consistently outperformed the broad market over an extended period of time.
But now we can tweak the Zacks Rank to add a couple of other wrinkles into the equation that will help us find stocks in the short run that may be ready to burst out to new 52-week or all-time highs. These stocks have had recent earnings estimate revisions, have price strength relative to their industry peers, and are bumping up against 52-week highs.
These stocks are not only Zacks Rank #1(Strong Buy) or Zacks Rank #2 (Buy) stocks. They also carry a Zacks Momentum Style Score of “A.” That means that of all the stocks we rank, these stocks are showing the strongest momentum characteristics we believe will lead to short term winners in this market.
By using the Zacks site, you can quickly and easily use our stock screener in order to uncover these gems. You need to search for:
This way, you'll be able to put together a list of the top momentum stocks with the highest likelihood of success over the next few weeks. I ran this screen today and come up with a few fantastic stock ideas for you.
Cheesecake Factory (CAKE – Analyst Report)
The Cheesecake Factory operates many upscale, high volume, casual dining restaurants. They offer over 200 menu items including appetizers, pizza, seafood, steaks, chicken, burgers, pasta, salads, sandwiches, omelets and signature desserts including over 40 varieties of cheesecake.
Shares of Cheesecake factory were stuck in consolidation throughout March and April of this year. A solid earnings report saw shares jump to $54 but it appears that was mostly just short covering as the stock trickled back down below $50. From there buyers stepped in and retested the 2015 highs. With the latest earnings report with CAKE beating the street and upping its dividend, the stock leapfrogged the highs and now looks to be breaking out.
