What Makes Limbach (LMB) a Good Fit for 'Trend Investing'

Core Viewpoint - The sustainability of a trend is crucial for successful short-term investing, and confirming fundamental factors is essential to maintain momentum in stocks [1][2]. Group 1: Trend Analysis - Timing entries into a trend significantly impacts investment success, as trends can reverse before exiting a trade, leading to potential losses [1][2]. - A predefined "Recent Price Strength" screen helps identify stocks with strong fundamentals that can sustain their upward trends, focusing on those trading in the upper portion of their 52-week high-low range [3]. Group 2: Company Spotlight - Limbach (LMB) - Limbach (LMB) has shown a solid price increase of 33.4% over the past 12 weeks, indicating strong investor interest [4]. - The stock has also increased by 18.9% over the last four weeks, suggesting that the upward trend is still intact, and it is currently trading at 96.6% of its 52-week high-low range, indicating a potential breakout [5]. - Limbach 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 [6]. Group 3: Market Sentiment - The Zacks Rank system, which categorizes stocks based on earnings estimates, shows that Zacks Rank 1 stocks have historically generated an average annual return of +25% since 1988, indicating strong market performance [7]. - Limbach also has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [7]. Group 4: Investment Strategy - In addition to Limbach, there are other stocks that meet the criteria of the "Recent Price Strength" screen, suggesting further investment opportunities [8]. - The effectiveness of stock-picking strategies can be backtested using tools like the Zacks Research Wizard, which provides access to successful stock-picking strategies [9].