Dime Community (DCOM) is a great choice for trendy investors, here’s why

WWhen it comes to investing or trading for the short term, they say “the trend is your friend”. And it is undeniable that this is the most profitable strategy. But making sure that a trend lasts in order to profit from it is easier said than done.

The trend is often reversed before exiting the trade resulting in short term capital loss for investors. So, for a profitable trade, factors like strong fundamentals, positive revisions to earnings estimates, etc. need to be confirmed. that could keep the momentum going.

Our “Recent Price Strength” screen, which is created on a single short term trading strategy, could be of great help in this regard. This predefined screen makes it very easy to select stocks that have sufficient fundamental strength to maintain their recent uptrend. Also, the screen only passes stocks that are trading in the upper portion of their 52 week high-low range, which is usually an indicator of an uptrend.

Several actions have taken place on the screen and Dime Community (DCOM) is one of them. Here are the main reasons why this stock is a solid choice for a “trendy” investment.

A solid price increase over a 12-week period reflects the continued willingness of investors to pay more for a stock’s potential rise. DCOM is fairly well positioned in this regard, gaining 3.3% over this period.

However, it is not enough to just watch the price development for about three months, as it does not reflect any trend reversals that could have occurred in a shorter period of time. It is important for a potential winner to maintain the price trend. A price increase of 3.9% over the past four weeks ensures that the trend is still in place for the action of this banking holding.

Additionally, DCOM is currently trading at 80.7% 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 has a Zacks Rank # 2 (Buy), meaning it is in the top 20% of the 4,000 stocks we rank based on trends in earnings estimate revisions and earnings estimates. BPA surprises – the key factors that impact short-term price movements of a stock.

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

Another factor that confirms the fundamental strength of the business is its average broker recommendation # 1 (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 DCOM might not be reversing anytime soon.

In addition to DCOM, several other stocks are currently going through our “Recent Price Strength” screen. You can consider investing in them and start looking for the most recent stocks that match these criteria.

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

However, keep in mind that the key to a successful stock selection strategy is to ensure that it has produced profitable results in the past. You can easily do this with the help of Zacks’ research assistant. In addition to allowing you to check the effectiveness of your strategy, the program contains some of our most successful stock selection strategies.

Click here to sign up for a free trial of the Research Assistant today.

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Dime Community Bancshares, Inc. (DCOM): Free Stock Analysis Report

To read this article on Zacks.com, click here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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