Vita Coco Company, Inc. (COCO) is a Great Momentum Stock: Should You Buy?

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, with the aim of buying high and selling higher, capitalizing on established price movements [1] Company Overview: Vita Coco Company, Inc. (COCO) - COCO currently holds a Momentum Style Score of B and a Zacks Rank of 1 (Strong Buy), indicating strong potential for outperformance in the market [2][3] - The stock has shown a price increase of 2.16% over the past week, while the Zacks Beverages - Soft drinks industry remained flat during the same period [5] - Over the last month, COCO's shares have risen by 25.45%, significantly outperforming the industry's 0.42% [5] - In the last three months, COCO's shares have increased by 27.94%, and over the past year, they have risen by 46.19%, compared to the S&P 500's gains of 5.71% and 15.31%, respectively [6] Trading Volume - COCO's average 20-day trading volume is 907,027 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the past two months, three earnings estimates for COCO have been revised upwards, while none have been lowered, leading to an increase in the consensus estimate from $1.17 to $1.23 [9] - For the next fiscal year, four estimates have moved higher with no downward revisions, indicating positive earnings momentum [9] Conclusion - Given the strong performance metrics and positive earnings outlook, COCO is positioned as a promising investment opportunity with a Momentum Score of B and a Zacks Rank of 1 (Strong Buy) [11]