Standard Motor Products (SMP) 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: Standard Motor Products (SMP) - SMP currently holds a Momentum Style Score of B, indicating a positive outlook based on price changes and earnings estimate revisions [2] - The company has a Zacks Rank of 2 (Buy), suggesting strong potential for outperformance in the market [3] Performance Metrics - SMP shares have increased by 1.13% over the past week, while the Zacks Automotive - Replacement Parts industry has decreased by 0.16% during the same period [5] - Over the last month, SMP's stock price has risen by 8.03%, significantly outperforming the industry's 1.1% [5] - In the last quarter, SMP shares have surged by 32.32%, and over the past year, they have gained 21.67%, compared to the S&P 500's increases of 11.05% and 18.96%, respectively [6] Trading Volume - SMP's average 20-day trading volume is 147,046 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the past two months, two earnings estimates for SMP have been revised upwards, raising the consensus estimate from $3.58 to $3.70 [9] - For the next fiscal year, two estimates have also moved higher, with no downward revisions noted [9] Conclusion - Given the positive performance metrics and earnings outlook, SMP is positioned as a 2 (Buy) stock with a Momentum Score of B, making it a strong candidate for near-term investment [11]