How to Spot Strong Buy Opportunities in Today's Market

The stage is set for investors who know where to look. While profit-taking waves swept through growth stocks this week as traders locked in substantial gains—after the Nasdaq’s impressive 90% advance over three years—the underlying market fundamentals remain remarkably supportive. The real opportunity lies in recognizing that strong buy opportunities still exist within this landscape, particularly as 2026 earnings growth expectations remain robust and the Federal Reserve signals additional interest rate cuts ahead.

Market Conditions Favor Smart Stock Picking in 2026

What makes this moment compelling for stock selection? The outlook for earnings growth across 2026 is surprisingly resilient, with expansion anticipated in nearly every economic sector. Combined with expectations for continued monetary easing from the Federal Reserve, long-term investors have solid reasons to be selective right now. The key is knowing how to separate the strongest candidates—those genuinely positioned to deliver—from the broader market noise. This is where disciplined stock screening becomes invaluable for anyone seeking to identify strong buy equities rather than settling for average performers.

The Zacks Rank Screening Method Explained

Zacks Investment Research has built a reputation by identifying stocks with outsized potential. Their ranking system focuses specifically on earnings estimate revision trends, which have historically been among the most powerful indicators of future stock performance. The Zacks Rank #1 designation represents their highest conviction level, signifying stocks that have demonstrated consistent ability to outperform in both rising and falling markets. Historically, these top-ranked stocks have delivered approximately 24.4% in average annual returns since 1988—a track record worth paying attention to.

The challenge investors face is that over 200 stocks earn this elite Zacks Rank #1 status at any given time. Filtering this universe into a manageable watchlist of truly compelling opportunities requires adding additional criteria beyond the baseline ranking.

Three Filters for Finding Top-Rated Stocks

The “strong buy” screening strategy employed here layers three specific filters that, when combined, can generate exceptional results:

Filter One: Zacks Rank of 1 Starting with only stocks that achieve Zacks Rank #1 ensures you’re evaluating companies with the strongest analyst conviction. This alone has proven its worth through decades of outperformance.

Filter Two: Positive Estimate Revisions The second criterion targets stocks where analyst estimates for the current quarter have moved upward over the past four weeks. Positive momentum in earnings forecasts often signals gathering bullish sentiment among Wall Street professionals. This % Change (Q1) Est. over 4 Weeks greater than 0 filter helps identify stocks with strengthening fundamental outlooks.

Filter Three: Top Broker Rating Momentum The final component selects the top 5 stocks showing the strongest improvement in average broker ratings over the most recent four-week period. This captures situations where multiple professional analysts are simultaneously upgrading their conviction—a powerful signal of aligned institutional opinion.

Together, these three parameters create what Zacks calls the “Screen of the Week” (discovered within their Research Wizard tool as bt_sow_filtered zacks rank5). The combination of these filters has historically produced returns of approximately 45.4% annually—substantially outpacing the broader market.

ServisFirst Bancshares: A Strong Buy Finance Play

Among the candidates currently qualifying for this filtered strong buy strategy is ServisFirst Bancshares, Inc. (ticker: SFBS), a bank holding company headquartered in Birmingham, Alabama. Through its primary subsidiary ServisFirst Bank, the company operates as a full-service commercial bank with an established presence in six states: Alabama, Florida, Georgia, South Carolina, Texas, and Virginia.

The company’s strategic positioning deserves closer examination. ServisFirst has built its reputation on several operational strengths: solid net interest margin expansion, measured loan growth, efficient cost management, and deliberate geographic expansion into higher-growth markets—particularly Texas. These characteristics position the organization well for sustained profitability and earnings surprises in a favorable banking environment.

The catalyst came on January 20 when ServisFirst delivered fourth-quarter 2025 results that topped prior consensus estimates. The earnings beat triggered positive revisions to forward guidance, with full-year 2026 estimates now 5% higher than previous forecasts and next year’s 2027 outlook revised up more than 4%. These upward estimate revisions earned ServisFirst its Zacks Rank #1 (Strong Buy) designation.

Why This Bank Stock Offers Both Value and Growth

The growth narrative extends beyond one quarter. ServisFirst is projected to expand revenues by 20% during 2026, followed by additional 9% growth in 2027. More impressively, adjusted earnings are anticipated to accelerate by 22% this year and 10% the following year—demonstrating that top-line growth translates meaningfully to profitability.

From a longer-term performance perspective, ServisFirst shares have appreciated 370% over the past decade, substantially exceeding the Finance sector’s 165% return. Perhaps more intriguingly, the stock appears positioned at a critical technical juncture, having held within a defined trading range for roughly five years. Multiple technical observers suggest breakout potential lies ahead.

The valuation picture further strengthens the investment case. SFBS trades at a 25% discount to its sector and a 20% discount to its own 10-year historical average, currently valued at 13.1X forward 12-month earnings. Zacks’ research team establishes an average price target suggesting 10% near-term upside from current levels. Adding to the appeal, all four broker recommendations tracked by Zacks maintain “Strong Buy” ratings, and the dividend yield reaches 1.8%—providing current income while awaiting potential capital appreciation.

Finding Your Next Winner Through Strategic Screening

This single name represents just one stock from the five positions that currently satisfy the stringent filtered strong buy criteria. The methodology demonstrates that systematic screening—combining conviction rankings, estimate momentum, and analyst sentiment—can help surface compelling opportunities without requiring investors to manually research hundreds of candidates.

Whether you’re seeking value, growth potential, technical breakout setups, or combination opportunities, the filtering approach outlined here provides a framework for disciplined stock selection. The strongest candidates, those earning strong buy recognition, tend to cluster during periods when fundamental outlooks are improving. With earnings growth momentum continuing into 2026 and rates expected to decline further, the environment for finding exceptional opportunities remains favorable for investors willing to do the analytical work.