Dolby Laboratories (DLB) Is a Great Choice for 'Trend' Investors, Here's Why

Core Viewpoint - The sustainability of a trend is crucial for successful short-term investing, and confirming the fundamentals behind a stock's momentum is essential for profitability [1][2]. Group 1: Investment Strategy - Investors should utilize tools like the "Recent Price Strength" screen to identify stocks that are trending upwards and supported by strong fundamentals [3]. - A solid price increase over 12 weeks, such as Dolby Laboratories (DLB) gaining 15.1%, indicates investor confidence in the stock's potential [4]. - A recent price increase of 12.3% over the past four weeks further confirms that the upward trend for DLB is intact [5]. Group 2: Company Fundamentals - DLB is currently trading at 90% of its 52-week high-low range, suggesting it may be on the verge of a breakout [6]. - The stock 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]. - An Average Broker Recommendation of 1 (Strong Buy) indicates high optimism from the brokerage community regarding DLB's near-term price performance [7]. Group 3: Market Context - The Zacks Rank stock-rating system has a strong historical performance, with Zacks Rank 1 stocks averaging a +25% annual return since 1988 [7]. - In addition to DLB, there are other stocks that meet the criteria of the "Recent Price Strength" screen, providing additional investment opportunities [8].