Here's Why DRDGOLD (DRD) Is Likely to Maintain Its Upward Trend

Mastering Trend Investing: How to Identify Stocks with Lasting Momentum

Although following prevailing market trends can benefit short-term traders and investors, accurately timing your entry is crucial for maximizing gains. Ensuring a trend’s durability is challenging, and many investors experience losses when trends reverse unexpectedly before they exit their positions.

To increase your chances of success, it’s important to verify that a stock has strong underlying fundamentals and positive shifts in earnings estimates—factors that can help sustain its momentum.

Spotting Stocks with Strong Price Action

The "Recent Price Strength" screening tool, built on a specialized short-term trading approach, is particularly helpful for identifying stocks with the potential to maintain their upward trajectory. This tool highlights companies with robust fundamentals that are also trading near the top of their 52-week price range, a common sign of bullish sentiment.

Why DRDGOLD (DRD) Stands Out

One standout from this screen is DRDGOLD (DRD). Here’s why it may appeal to trend-focused investors:

• Over the past 12 weeks, DRD’s share price has climbed 29.7%, indicating sustained investor confidence in its growth prospects.
• In the last month alone, DRD has advanced 4.5%, suggesting the positive trend remains intact.
• Currently, DRD trades at 92% of its 52-week high-low range, signaling a possible breakout ahead.

Strong Fundamentals and Analyst Support

On the fundamentals side, DRD holds a Zacks Rank #1 (Strong Buy), placing it among the top 5% of over 4,000 stocks ranked by factors like earnings estimate revisions and earnings surprises—key drivers of short-term price movements.

The Zacks Rank system, which sorts stocks into five categories from #1 (Strong Buy) to #5 (Strong Sell) based on earnings-related metrics, has a proven track record. Since 1988, Zacks Rank #1 stocks have delivered an average annual return of 25%.

Additionally, DRD boasts an Average Broker Recommendation of #1 (Strong Buy), reflecting widespread optimism among analysts about its near-term outlook.

Given these factors, DRD’s upward trend appears likely to continue for the foreseeable future.

Other Stocks with Strong Momentum

Besides DRD, several other stocks currently meet the criteria of the "Recent Price Strength" screen. Exploring these options could help you discover additional opportunities with similar momentum.

Expand Your Search with Zacks Premium Screens

The "Recent Price Strength" screen is just one of over 45 Zacks Premium Screens designed to help investors outperform the market. You can select the screen that best matches your investment approach.

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For any stock-picking method, it’s essential to confirm its historical profitability. The Zacks Research Wizard allows you to backtest strategies and access some of the firm’s most successful stock selection models.

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