Stellar Bancorp (STEL) 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: Stellar Bancorp (STEL) - Stellar Bancorp currently holds a Momentum Style Score of A, indicating strong momentum characteristics [3] - The company has a Zacks Rank of 2 (Buy), suggesting a favorable outlook based on historical performance metrics [4] Performance Metrics - Over the past week, STEL shares increased by 0.31%, outperforming the Zacks Banks - Southeast industry, which rose by 0.16% [6] - In the last month, STEL's price change was 20.74%, significantly higher than the industry's 5.34% [6] - Over the past quarter, STEL shares have risen by 23.35%, and over the last year, they have gained 30.77%, compared to the S&P 500's increases of 2.08% and 15.65%, respectively [7] Trading Volume - The average 20-day trading volume for STEL is 416,853 shares, which serves as a bullish indicator when combined with rising stock prices [8] Earnings Outlook - In the last two months, one earnings estimate for STEL has increased, while none have decreased, raising the consensus estimate from $1.99 to $2.03 [10] - For the next fiscal year, one estimate has moved upwards with no downward revisions, indicating positive earnings momentum [10] Conclusion - Considering the strong performance metrics and positive earnings outlook, STEL is positioned as a 2 (Buy) stock with a Momentum Score of A, making it a potential candidate for near-term investment [12]