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: Advanced Drainage Systems (WMS) - WMS currently holds a Momentum Style Score of A, indicating strong momentum characteristics [2] - The company has a Zacks Rank of 2 (Buy), suggesting it is positioned for potential outperformance in the market [3] Performance Metrics - Over the past week, WMS shares have increased by 15.35%, outperforming the Zacks Building Products - Miscellaneous industry, which rose by 5.98% [5] - In a longer timeframe, WMS shares have gained 23.27% over the past quarter and 37.86% over the last year, while the S&P 500 has only moved 1.86% and 15.7%, respectively [6] Trading Volume - The average 20-day trading volume for WMS is 758,640 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 WMS have been revised upwards, increasing the consensus estimate from $5.98 to $6.10 [9] - For the next fiscal year, two estimates have also moved higher, with no downward revisions noted [9] Conclusion - Given the strong performance metrics and positive earnings outlook, WMS is identified as a solid momentum pick with a Momentum Score of A and a Zacks Rank of 2 (Buy) [11]
What Makes Advanced Drainage Systems (WMS) a Strong Momentum Stock: Buy Now?