Elanco Animal Health Incorporated (ELAN) 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: Elanco Animal Health Incorporated (ELAN) - ELAN currently holds a Momentum Style Score of B, indicating a favorable momentum characteristic [2] - The company has a Zacks Rank of 2 (Buy), suggesting strong potential for outperformance in the market [3] Performance Metrics - Over the past week, ELAN shares increased by 5.25%, while the Zacks Medical - Outpatient and Home Healthcare industry remained flat [5] - In the last month, ELAN's stock price rose by 9.01%, significantly outperforming the industry's 0.12% [5] - Over the past quarter, ELAN shares have risen by 39.97%, and over the last year, they are up 41.33%, compared to the S&P 500's increases of 8.11% and 19.22%, respectively [6] Trading Volume - ELAN's average 20-day trading volume is 5,551,459 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 ELAN have been revised upwards, increasing the consensus estimate from $0.88 to $0.89 [9] - For the next fiscal year, two estimates have also moved higher, with no downward revisions noted [9] Conclusion - Considering the positive momentum indicators and earnings outlook, ELAN is positioned as a 2 (Buy) stock with a Momentum Score of B, making it a strong candidate for near-term investment [11]