First Merchants (FRME) is a Great Momentum Stock: Should You Buy?

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell even higher, with the expectation that established trends will continue [1][2]. Company Overview: First Merchants (FRME) - First Merchants currently holds a Momentum Style Score of A, indicating strong potential for momentum investing [3]. - The company has a Zacks Rank of 1 (Strong Buy), which historically outperforms the market when combined with a Style Score of A or B [4]. Performance Metrics - Over the past week, FRME shares increased by 10.14%, significantly outperforming the Zacks Banks - Midwest industry, which rose by 1.21% [6]. - In a longer timeframe, FRME's shares have risen by 16.86% over the past month, compared to the industry's 7.1% [6]. - Over the last quarter, FRME shares increased by 4.14%, and over the past year, they gained 34.79%, while the S&P 500 only moved 2.97% and 24.31%, respectively [7]. Trading Volume - The average 20-day trading volume for FRME is 246,404 shares, which serves as a bullish indicator when combined with rising stock prices [8]. Earnings Outlook - In the past two months, three earnings estimates for FRME have been revised upwards, raising the consensus estimate from $3.52 to$3.71 [10]. - For the next fiscal year, two estimates have also moved higher, with no downward revisions noted [10]. Conclusion - Given the strong performance metrics and positive earnings outlook, FRME is positioned as a solid momentum pick and is recommended for investors seeking potential growth [12].