Here's Why the Upward Trend in Betterware de Mexico SAPI de C (BWMX) Is Likely to Continue
How to Capitalize on Short-Term Stock Trends
In the realm of short-term trading, the saying "the trend is your friend" often rings true, as following prevailing market directions can be highly rewarding. However, identifying trends that are likely to persist and turning them into profits can be challenging.
Frequently, trends reverse before investors can exit their positions, resulting in short-term losses. To increase the chances of a successful trade, it's essential to confirm that a stock has strong fundamentals, positive changes in earnings forecasts, and other supportive factors that can help sustain its momentum.
Spotting Stocks with Upward Momentum
For those seeking to benefit from stocks experiencing upward movement, the "Recent Price Strength" screening tool can be invaluable. This tool helps identify stocks that are not only trending higher but also have robust underlying fundamentals and are trading near the top of their 52-week price range—a common sign of bullish sentiment.
Among the stocks highlighted by this screen is Betterware de Mexico SAPI de C (BWMX). Below are several reasons why BWMX stands out as a compelling choice for trend-focused investors.
- Over the past 12 weeks, BWMX has climbed 26.7%, indicating ongoing investor confidence in its potential for further gains.
- Short-term momentum remains intact, as the stock has advanced 0.4% in the last four weeks, suggesting the uptrend is still in place.
- BWMX is currently trading at 87.3% of its 52-week high-low range, which could signal an impending breakout.
Strong Fundamentals Back the Trend
From a fundamental perspective, BWMX holds a Zacks Rank #1 (Strong Buy), placing it among the top 5% of over 4,000 stocks ranked based on earnings estimate revisions and earnings surprises—key drivers of short-term price movements.
The Zacks Rank system, which evaluates stocks using four earnings-related factors and classifies them from #1 (Strong Buy) to #5 (Strong Sell), has a proven track record. Since 1988, stocks rated #1 have delivered an average annual return of 25%.
Additionally, BWMX has received an Average Broker Recommendation of #1 (Strong Buy), reflecting strong confidence among analysts regarding its near-term prospects.
Given these factors, BWMX's upward trend appears likely to continue in the near future.
Explore More Stocks with Positive Momentum
BWMX is just one of several stocks currently meeting the criteria of the "Recent Price Strength" screen. Investors may want to explore other candidates and stay alert for new opportunities that fit this profile.
Beyond this screen, there are more than 45 Zacks Premium Screens designed to help investors outperform the market, allowing you to tailor your search to your unique investment style.
Remember, the foundation of any successful stock selection strategy is a proven track record of profitability. The Zacks Research Wizard enables you to backtest strategies and access some of the firm's most effective stock-picking methods.
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Get More Investment Insights
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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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