Palomar (PLMR) 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 higher, with the expectation that established trends will continue [1] Company Overview: Palomar (PLMR) - Palomar currently holds a Momentum Style Score of A, indicating strong momentum characteristics [2] - The company has a Zacks Rank of 1 (Strong Buy), suggesting it is expected to outperform the market [3] Performance Metrics - Over the past week, PLMR shares have increased by 15.47%, significantly outperforming the Zacks Insurance - Property and Casualty industry, which rose by only 0.01% [5] - In a longer timeframe, PLMR's shares have risen by 13.93% over the past month compared to the industry's 0.98% [5] - Over the last quarter, PLMR shares increased by 13.3%, and over the past year, they have gained 68.3%, while the S&P 500 only moved 4.18% and 24.21%, respectively [6] Trading Volume - The average 20-day trading volume for PLMR is 186,666 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the past two months, five earnings estimates for PLMR have been revised upwards, with no downward revisions, leading to an increase in the consensus estimate from $5.92 to$6.54 [9] - For the next fiscal year, four estimates have also moved higher without any downward revisions [9] Conclusion - Considering the strong performance metrics and positive earnings outlook, PLMR is positioned as a 1 (Strong Buy) stock with a Momentum Score of A, making it a compelling investment option [11]