What makes Bunzl PLC (BZLFY) a good choice for “trend investing”?

While “the trend is your friend” when it comes to short-term investing or trading, timing of entry into the trend is a critical factor in success. And increasing the chances of success by ensuring a trend is sustainable isn't easy.

The trend often reverses before exiting the trade, resulting in a short-term loss of capital for investors. So, for a profitable trade, one should confirm factors like solid fundamentals, positive earnings estimate revisions, etc. that could sustain the stock's momentum.

Our Current Price Strength screen, based on a unique short-term trading strategy, could be very useful in this regard. This predefined screen makes it really easy to shortlist the stocks that have enough fundamental strength to sustain their recent uptrend. Additionally, only stocks that are trading near the top of their 52-week high-low range, which is usually an indicator of bullishness, are displayed on the screen.

There are several stocks that have passed through the screen and Bunzl PLC (BZLFY) is one of them. Here are the top reasons why this stock is a good choice for “trend” investing.

A solid price increase over a 12-week period reflects investors' continued willingness to pay more for a stock's potential upside. BZLFY fits quite well in this regard, gaining 12.3% over this period.

However, it is not enough to look at the price change for about three months, as it does not reflect a trend reversal that could have occurred in a shorter period. It is important for a potential winner to maintain the price trend. A 10.4% increase in the last four weeks ensures that the trend for this company's stock continues.

Additionally, BZLFY is currently trading at 93.4% of its 52-week high-low range, suggesting that it could be on the verge of a breakout.

Looking at fundamentals, the stock currently carries a Zacks Rank #2 (Buy), meaning it ranks in the top 20% of more than 4,000 stocks we rank based on trends in earnings estimate revisions and EPS surprises – the Key factor – classify factors that influence the short-term price movements of a stock.

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 a Impressive, outside-audited track record of record: Zacks Rank #1 stocks have delivered an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Another factor that confirms the company's fundamental strength is the average broker recommendation #1 (Strong Buy). This suggests that the brokerage community is extremely optimistic about the stock's near-term price performance.

Therefore, the price trend of BZLFY may not reverse anytime soon.

In addition to BZLFY, there are several other stocks currently going through our Current Price Strength screen. You can think about investing in them and look for the latest stocks that meet these criteria.

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Bunzl PLC (BZLFY): Free Stock Analysis Report

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