Relative strength focuses on stocks that have performed well compared to the market or another relevant benchmark.
By targeting those displaying this favorable price action, investors can find themselves in positive market trends where buyers are in control. And recently, several AI-related stocks have displayed precisely that.
For those interested in momentum, three stocks – Dell Technologies DELL, Arista Networks ANET, and Vertiv VRT – could all be considered. All three have outperformed nicely, also carrying a favorable Zacks Rank.
Let’s take a closer look at each.
Vertiv
Vertiv provides services for data centers, communication networks, and commercial and industrial facilities with a portfolio of power, cooling, and IT infrastructure solutions and services. Shares have been remarkably strong over the last month, gaining 30%.
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Robust quarterly results fueled by the AI-boom have caused analysts to raise their earnings expectations nearly across the board. The stock currently sports the highly-coveted Zacks Rank #1 (Strong Buy).
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Arista Networks
Arista Networks provides cloud networking solutions for data centers and cloud computing environments. The stock sports a Zacks Rank #1 (Strong Buy), with earnings expectations moving higher across the board.
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Concerning headline figures in its latest print, ANET posted a 14% beat relative to the Zacks Consensus EPS estimate and reported sales 1.3% ahead of expectations, with both items showing growth relative to the year-ago period. In addition, the company’s gross margin totaled 63.7%, which is well above the 59.5% mark in the same period last year.
Shares have added 30% over the last month compared to the S&P 500’s 6% gain.
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Dell Technologies
Dell Technologies is a provider of information technology solutions, with its AI offerings helping customers drive rapid adoption and optimization of their AI environments.
DELL shares have been notably strong, up nearly 26% and crushing the S&P 500’s performance over the last month. Positive quarterly results have led the surge, with shares melting higher following its latest quarterly release.
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Like those above, the company’s earnings outlook has brightened across the board, landing the stock into a favorable Zacks Rank #2 (Buy). The excitement surrounding artificial intelligence (AI) has forced analysts to revise their expectations positively.
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Bottom Line
While the market overall has delivered a strong performance over the last month, several AI-related stocks, including Dell Technologies DELL, Arista Networks ANET, and Vertiv VRT, are displaying relative strength.
In addition, all three sport a favorable Zacks Rank, with favorable revisions providing the fuel needed to continue climbing higher.
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Dell Technologies Inc. (DELL) : Free Stock Analysis Report
Arista Networks, Inc. (ANET) : Free Stock Analysis Report
Vertiv Holdings Co. (VRT) : Free Stock Analysis Report
