McGrath (MGRC) is a Great Momentum Stock: Should You Buy?

Core Insights - 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][2] - The Zacks Momentum Style Score helps identify stocks with strong momentum, and McGrath (MGRC) currently holds a Momentum Style Score of B, indicating potential for growth [3][4] Price Performance - MGRC shares have increased by 3.45% over the past week, outperforming the Zacks Financial - Leasing Companies industry, which rose by 1.7% during the same period [6] - Over the past month, MGRC's price change is 5.39%, while the industry average is 7.53% [6] - In the last quarter, MGRC shares rose by 10.36%, and over the past year, they increased by 21.04%, compared to the S&P 500's gains of 9.68% and 20% respectively [7] Trading Volume - MGRC's average 20-day trading volume is 111,467 shares, which serves as a baseline for price-to-volume analysis; a rising stock with above-average volume is generally seen as bullish [8] Earnings Outlook - Recent earnings estimate revisions for MGRC show positive momentum, with two estimates moving higher and none lower in the past two months, raising the consensus estimate from $6.19 to $6.25 [10] - For the next fiscal year, one estimate has increased while there have been no downward revisions [10] Conclusion - Given the positive price performance, trading volume, and earnings outlook, MGRC is rated as a 2 (Buy) stock with a Momentum Score of B, making it a strong candidate for near-term investment [12]