Recent Price Trend in Deluxe (DLX) is Your Friend, Here's Why

Core Viewpoint - The article emphasizes the importance of confirming the sustainability of stock trends for profitable short-term investing, highlighting the use of a specific screening strategy to identify stocks with strong fundamentals and positive price momentum [1][2]. Group 1: Stock Screening Strategy - The "Recent Price Strength" screen is designed to identify stocks with sufficient fundamental strength to maintain their recent uptrend, focusing on those trading in the upper portion of their 52-week high-low range, indicating bullishness [3]. - Deluxe (DLX) is identified as a suitable candidate that passed through this screening process, showing a solid price increase of 26.2% over the past 12 weeks, reflecting investor confidence [4]. - In addition to the 12-week price increase, DLX has also seen a 26.6% price increase over the past four weeks, confirming that the upward trend is still intact [5]. Group 2: Fundamental Strength - DLX holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, which are critical for near-term price movements [6]. - The Zacks Rank system has a strong track record, with Zacks Rank 1 stocks generating an average annual return of +25% since 1988, indicating the effectiveness of this ranking system [7]. - The Average Broker Recommendation for DLX is 1 (Strong Buy), suggesting high optimism from the brokerage community regarding the stock's near-term performance [7]. Group 3: Investment Opportunities - The article suggests that the price trend for DLX is unlikely to reverse soon, and there are several other stocks that also meet the criteria of the "Recent Price Strength" screen, presenting additional investment opportunities [8]. - Investors are encouraged to explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stock picks [8].