BHP (BHP) 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] - The Zacks Momentum Style Score helps investors identify stocks with strong momentum, addressing the challenges of defining momentum [2] Company Overview: BHP - BHP currently holds a Momentum Style Score of A, indicating strong potential for momentum investing [3] - The company has a Zacks Rank of 1 (Strong Buy), which historically outperforms the market when combined with a Style Score of A or B [4] Price Performance - BHP shares have increased by 7.53% over the past week, outperforming the Zacks Mining - Miscellaneous industry, which rose by 2.79% [6] - Over the past month, BHP's shares rose by 8.88%, while the industry saw a performance of 10.91% [6] - In the last quarter, BHP shares increased by 16.75%, compared to the S&P 500's 5.09% [7] - Over the past year, BHP shares are up 16.15%, while the S&P 500 has risen by 14.7% [7] Trading Volume - BHP's average 20-day trading volume is 2,860,280 shares, which serves as a baseline for price-to-volume analysis [8] Earnings Outlook - In the past two months, two earnings estimates for BHP have been revised upwards, with no downward revisions, boosting the consensus estimate from $3.89 to $4.59 [10] - For the next fiscal year, two estimates have also moved upwards without any downward revisions [10] Conclusion - BHP's strong performance metrics and positive earnings outlook contribute to its designation as a 1 (Strong Buy) stock with a Momentum Score of A, making it a compelling option for investors seeking momentum plays [12]