What Mitie Group PLC does. (MITFY) eligible for “Trend Investing” – December 26, 2023

Most of us have heard the phrase “the trend is your friend.” And this is undoubtedly the key to success when it comes to short-term investing or trading. But it is not easy to ensure the sustainability of a trend and to profit from it.

The trend often reverses before exiting the trade, resulting in short-term capital loss for investors. So, for a profitable trade, one needs to confirm factors like solid fundamentals, positive earnings forecast revisions, etc., which could sustain the stock’s momentum.

Investors looking to profit from stocks that are currently moving may find our Last Price Strength screen quite useful. This predefined screen is useful for spotting stocks that are in an uptrend, supported by the strength of their fundamentals, and are trading at the top of their 52-week range low, which is usually a bullish indicator.

Mitie Group PLC. (MYTHS Free Report) is one of several suitable candidates that passed through the screen. Here are the main reasons why this could be a profitable bet for “trend” investors.

A solid 12-week price increase reflects investors’ continued willingness to pay more for the stock’s potential upside. MITFY is quite relevant in this regard, gaining 7.6% during this period.

However, it is not enough to look at the price change over three months or so, as it does not reflect any trend reversal that may have occurred in a shorter period of time. It is important for a potential winner to maintain the price trend. The 1.9% price increase over the past four weeks ensures that the trend is still in place for this company’s stock.

Additionally, MITFY is currently trading at 85.3% of its 52-week High-Low Range, hinting that it may be on the verge of a breakout.

Looking at the fundamentals, the stock currently carries a Zacks Rank #2 (Buy), meaning it is in the top 20% of more than 4,000 stocks we rank based on trends in earnings estimate revisions and EPS surprises—the key factors that affect the movement of share prices in the short term.

The Zacks Rank stock rating system, which uses four factors related to earnings estimates to classify stocks into five groups ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive external audited track record, the Zacks #1 Rank stock has generated an average annual return of +25% since 1988. You can see the full list of today’s Zacks #1 Rank (Strong Buy) stocks here >>>>

Another factor that confirms the company’s fundamental strength is its average #1 Broker Recommendation (Strong Buy). This indicates that the brokerage community is very optimistic about the short-term price performance of the stock.

So the price trend in MITFY may not reverse anytime soon.

In addition to MITFY, there are several other stocks that are currently passing through our Last Strength Price screen. You might consider investing in them and start looking for the latest stocks that meet these criteria.

This isn’t the only screen that can help you find your next winning stock pick. Based on your personal investing style, you can choose from over 45 Zacks Premium Screens that are strategically designed to beat the market.

Keep in mind, however, that the key to a successful stock-picking strategy is to ensure that it has produced profitable results in the past. You can easily do this using the Zacks Research Advisor. In addition to allowing you to test the effectiveness of your strategy, the program comes with some of our most successful stock picking strategies.

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