Cheesecake Factory (CAKE) is a Great Momentum Stock: Should You Buy?

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, with the aim of buying high and selling higher, capitalizing on established price movements [1] Company Summary: Cheesecake Factory (CAKE) - CAKE currently holds a Momentum Style Score of A, indicating strong momentum characteristics [2] - The company has a Zacks Rank of 2 (Buy), suggesting it is positioned for potential outperformance in the market [3] - Over the past week, CAKE shares increased by 8.99%, significantly outperforming the Zacks Retail - Restaurants industry, which rose by only 0.49% [5] - In a longer time frame, CAKE shares have increased by 28.2% over the past quarter and 47.38% over the last year, while the S&P 500 only moved 5.48% and 36.89% respectively [6] - The average 20-day trading volume for CAKE is 1,245,898 shares, indicating a bullish sign with rising stock prices [7] - Earnings estimates for CAKE have shown positive revisions, with 9 estimates moving higher in the past two months, raising the consensus estimate from $3.21 to $3.29 [9]