Digi International (DGII) 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: Digi International (DGII) - Digi International 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, DGII shares have increased by 7.79%, while the Zacks Computer - Networking industry remained flat [5] - In a longer timeframe, DGII's monthly price change is 30.66%, significantly outperforming the industry's 2.13% [5] - Over the last quarter, DGII shares rose by 29.48%, and over the past year, they increased by 38.72%, compared to the S&P 500's gains of 5.71% and 15.31%, respectively [6] Trading Volume - The average 20-day trading volume for DGII is 294,800 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 DGII have been revised upwards, while none have been lowered, leading to an increase in the consensus estimate from $2.20 to $2.38 [9] - For the next fiscal year, one estimate has moved upwards with no downward revisions [9] Conclusion - Given the positive performance metrics and earnings outlook, DGII is positioned as a 2 (Buy) stock with a Momentum Score of B, making it a strong candidate for near-term investment [11]