Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to capitalize on established directions for profitable trades [1]. Company Overview: Discover (DFS) - Discover 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]. Performance Metrics - Over the past week, DFS shares increased by 7.97%, outperforming the Zacks Financial - Consumer Loans industry, which rose by 2.07% [5]. - In a longer timeframe, DFS shares have gained 16.05% over the past month, compared to the industry's 7.98% [5]. - Over the last quarter, DFS shares rose by 10.12%, and over the past year, they have surged by 90.51%, while the S&P 500 only increased by 3.85% and 24.08%, respectively [6]. Trading Volume - The average 20-day trading volume for DFS is 1,392,292 shares, which serves as a bullish indicator when combined with rising stock prices [7]. Earnings Outlook - In the past two months, four earnings estimates for DFS have been revised upwards, while four have been revised downwards, leading to an increase in the consensus estimate from $12.85 to $13.39 [9]. - For the next fiscal year, four estimates have moved up, while two have been revised down [9]. Conclusion - Given the strong performance metrics and positive earnings outlook, DFS is positioned as a solid momentum pick with a Momentum Score of A and a Zacks Rank of 2 (Buy) [10].
Are You Looking for a Top Momentum Pick? Why Discover (DFS) is a Great Choice