5 Stocks to Buy Using the Relative Price Strength Strategy Nilanjan Choudhury Fri, October 16, 2026 at 1:08 PM EDT 6 min read ^GSPC -1.21% CVX +2.19% HALO -0.56% LIND -3.24% GCT -3.02% Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
U.S. equities continue to show resilience despite a volatile backdrop. The S&P 500 has faced pressure from weakness in AI-linked technology stocks, but rotation into other sectors suggests the market's underlying strength is broader than a handful of major names. Investor interest also remains supported by expectations for continued corporate growth.
Risks have not disappeared. Sticky inflation, elevated energy prices, uncertainty around interest rates and concerns over debt-funded AI investment could keep markets unsettled. Even so, easing Treasury yields and signs of recovery across global equities offer support for a mildly bullish U.S. market outlook. Demand tied to AI and cloud investment also remains an important long-term driver.
With market leadership shifting, investors may benefit from focusing on stocks that consistently outperform the S&P 500. Relative price strength therefore appears to be a useful strategy for identifying stronger opportunities in the current market.
At this stage, investors would be wise to consider companies such as Halozyme Therapeutics HALO, GigaCloud Technology GCT, Lindblad Expeditions Holdings LIND, Permian Resources PR and Chevron Corporation CVX.
Whether a stock has the potential to offer considerable returns is determined primarily by its earnings and valuation ratios. Simultaneously, it is essential to check whether its price performance exceeds its peers or the industry average.
Upon such comparison, if we find that a stock is unable to match up to wider sectoral growth despite having impressive earnings momentum or valuation multiples, it may be better to avoid it.
However, those outperforming their respective industries or benchmarks should be included in your portfolio since they have a higher chance of securing significant returns. Picking a stock that outperforms its peers ensures a winning option in your hands.
Then again, it is imperative that you determine whether or not an investment has relevant upside potential when considering stocks with significant relative price strength. Stocks delivering better than the S&P 500 for 1 to 3 months, at least, and having solid fundamentals, indicate room for growth and are the best way to go about this strategy.
Finally, it is crucial to find out whether analysts are optimistic about the upcoming earnings of these companies. In order to do this, we have added positive estimate revisions for the current quarter's (Q1) earnings to our screen. When a stock undergoes an upward revision, it leads to additional price gains.
Relative % Price change – 12 weeks greater than 0
Relative % Price change – 4 weeks greater than 0
Relative % Price change – 1 week greater than 0
(We have considered those stocks that have been outperforming the S&P 500 over the last 12 weeks, four weeks and one week.)
% Change (Q1) Est. over 4 Weeks greater than 0: Positive current-quarter estimate revisions over the last four weeks.
Zacks Rank equal to 1: Only Zacks Rank #1 (Strong Buy) stocks — that have returned more than 26% annually over the last 26 years and surpassed the S&P 500 in 23 of the last 26 years — can get through. You can see the complete list of today's Zacks #1 Rank stocks here.
Current Price greater than or equal to $5 and Average 20-day Volume greater than or equal to 50,000: A minimum price of $5 is a good standard to screen low-priced stocks, while a high trading volume would imply adequate liquidity.
VGM Score less than or equal to B:Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 or 2 (Buy), offer the best upside potential.
Here are five of the 20 stocks that made it through the screen:
Halozyme Therapeutics: Halozyme Therapeutics is a biopharmaceutical company focused on the development and commercialization of novel treatments for oncology indications by targeting the tumor microenvironment. The company's expected EPS growth rate for three to five years is currently 32%, which compares favorably with the industry's growth rate of 21.9%. Halozyme Therapeutics has a VGM Score of A.
Over the past 60 days, the Zacks Consensus Estimate for Halozyme Therapeutics' 2026 earnings has moved up 5.1%. The Zacks Consensus Estimate for 2026 earnings indicates 112.1% growth. HALO shares have gained 81.7% in a year.
GigaCloud Technology: GigaCloud Technology operates a global B2B ecommerce platform connecting mainly Asian manufacturers with resellers in the United States, Europe and Japan through an integrated marketplace for product discovery, payments and logistics. The Zacks Consensus Estimate for GCT's 2026 earnings indicates 37.1% growth. GigaCloud Technology has a VGM Score of B.
GCT beat the Zacks Consensus Estimate for earnings in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 42.1%, on average. GigaCloud Technology shares have gained 119.4% in a year.
Lindblad Expeditions Holdings: It is an adventure travel company focused on immersive trips by sea and land. The Zacks Consensus Estimate for 2026 earnings of Lindblad Expeditions indicates 175.9% growth. The company has a VGM Score of B.
LIND has a trailing four-quarter earnings surprise of roughly 222.3%, on average. Over the past 60 days, the Zacks Consensus Estimate for the expedition voyage operator's 2026 earnings has moved up from 17 cents per share to 22 cents. Lindblad Expeditions's shares have nearly tripled in a year.
Permian Resources: Headquartered in Midland, TX, it is an independent oil and gas producer focused on the Permian Basin. Permian Resources has a market capitalization of more than $20 billion. It has a VGM Score of A.
Notably, over the past 60 days, the Zacks Consensus Estimate for PR's 2026 earnings has gone up 8.4%. The Zacks Consensus Estimate for 2026 earnings of Permian Resources indicates 62.2% growth. PR shares have gained 95.3% in a year.
Chevron: Chevron is one of the largest publicly traded oil and gas companies in the world with operations that span almost every corner of the globe. The company's expected EPS growth rate for three to five years is currently 20.7%, which compares favorably with the industry's growth rate of 16.4%. CVX has a VGM Score of A.
Over the past 60 days, the Zacks Consensus Estimate for Chevron's 2026 earnings has moved up 10.5%. The Zacks Consensus Estimate for 2026 earnings indicates 140.5% growth. CVX shares have gained 44.6% in a year.
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Chevron Corporation (CVX) : Free Stock Analysis Report
Halozyme Therapeutics, Inc. (HALO) : Free Stock Analysis Report
Lindblad Expeditions (LIND) : Free Stock Analysis Report
GigaCloud Technology Inc. (GCT) : Free Stock Analysis Report
Permian Resources Corporation (PR) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
