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VFMO: Momentum Investing Is Flourishing, But Consider SPMO Or MTUM
Seeking Alphaยท 2025-07-30 01:07
Core Insights - The US stock market is expected to continue its strong growth in the second half of the year, making momentum investing a potentially effective strategy for achieving high returns [1] Group 1 - Momentum investing is highlighted as one of the best strategies for investors looking to capitalize on the market's upward trajectory [1] - The Vanguard U.S. Momentum fund is mentioned as a relevant investment vehicle for those interested in this strategy [1] - The analysis emphasizes a combination of fundamental and technical approaches to forecast market trends, catering to both short- and long-term investment horizons [1]
Here's Why Airbnb, Inc. (ABNB) is a Strong Momentum Stock
ZACKSยท 2025-07-29 14:51
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both. The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens. It also includes access to the Zacks Style Scores. Mome ...
Best Momentum Stocks to Buy for July 28th
ZACKSยท 2025-07-28 15:01
Group 1: Stock Highlights - Calix, Inc. (CALX) has a Zacks Rank 1 with a 25.6% increase in the current year earnings estimate over the last 60 days and a share price gain of 35.9% in the last three months compared to the S&P 500's 14.9% [1] - Medpace Holdings, Inc. (MEDP) also holds a Zacks Rank 1, with a 10.1% increase in the current year earnings estimate over the last 60 days and a share price gain of 46.1% in the last three months compared to the S&P 500's 14.9% [2] - West Pharmaceutical Services, Inc. (WST) maintains a Zacks Rank 1, with a 5.3% increase in the current year earnings estimate over the last 60 days and a share price gain of 23.4% in the last three months compared to the S&P 500's 14.9% [3] Group 2: Momentum Scores - Calix, Inc. has a Momentum Score of A, indicating strong momentum characteristics [1] - Medpace Holdings, Inc. also possesses a Momentum Score of A, reflecting its robust performance [2] - West Pharmaceutical Services, Inc. carries a Momentum Score of A, showcasing its positive momentum [3]
Why OneMain Holdings (OMF) is a Top Value Stock for the Long-Term
ZACKSยท 2025-07-28 14:41
Core Insights - Zacks Premium offers various tools to help investors make informed decisions and enhance their confidence in the stock market [1][2] Zacks Style Scores - The Zacks Style Scores are indicators that assist investors in selecting stocks likely to outperform the market within 30 days, rated from A to F based on value, growth, and momentum characteristics [2][3] - The Value Score identifies attractive and discounted stocks using ratios like P/E, PEG, and Price/Sales [3] - The Growth Score focuses on a company's financial strength and future outlook, analyzing projected and historical earnings, sales, and cash flow [4] - The Momentum Score helps investors capitalize on price trends, utilizing factors like one-week price change and monthly earnings estimate changes [5] - The VGM Score combines all three Style Scores, providing a comprehensive indicator for stock selection based on value, growth, and momentum [6] Zacks Rank - The Zacks Rank is a proprietary stock-rating model that uses earnings estimate revisions to facilitate portfolio building [7] - Stocks rated 1 (Strong Buy) have produced an average annual return of +23.75% since 1988, significantly outperforming the S&P 500 [8] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal returns [9] Stock to Watch: OneMain Holdings - OneMain Holdings Inc. is a financial services company with a Zacks Rank of 3 (Hold) and a VGM Score of A [11] - The company has a Value Style Score of A, supported by a forward P/E ratio of 9.6, making it appealing to value investors [12] - Recent earnings estimates for fiscal 2025 have been revised higher, with the Zacks Consensus Estimate increasing to $6.18 per share, and an average earnings surprise of +9.3% [12]
Fast-paced Momentum Stock LG Display (LPL) Is Still Trading at a Bargain
ZACKSยท 2025-07-28 13:50
Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investors often face challenges in determining the right entry point, as stocks may lose momentum when their valuations exceed future growth potential [2] - Investing in bargain stocks that exhibit recent price momentum can be a safer strategy, utilizing tools like the Zacks Momentum Style Score to identify potential opportunities [3] Group 2: LG Display (LPL) Analysis - LG Display (LPL) has shown a four-week price change of 10.1%, indicating strong investor interest [4] - Over the past 12 weeks, LPL's stock has gained 26.8%, with a beta of 1.44, suggesting it moves 44% more than the market [5] - LPL has a Momentum Score of A, indicating a favorable time to invest based on momentum [6] Group 3: Earnings Estimates and Valuation - LPL has received upward revisions in earnings estimates, earning a Zacks Rank 2 (Buy), which is associated with strong momentum effects [7] - The stock is currently trading at a Price-to-Sales ratio of 0.19, suggesting it is undervalued, as investors pay only 19 cents for each dollar of sales [7] Group 4: Additional Investment Opportunities - Besides LPL, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - The Zacks Premium Screens offer over 45 different strategies tailored to help investors find winning stock picks [9]
3 Momentum Anomaly Picks as Markets Hit Record High on the Trot
ZACKSยท 2025-07-25 15:02
Market Overview - The U.S. equity markets have reached record highs, driven by strong quarterly earnings across all sectors, particularly from blue-chip technology stocks, highlighting the impact of AI infrastructure spending on investor sentiment [1] - Renewed trade deals between the U.S. and its trading partners have contributed to positive market conditions, with investors looking for clarity on potential interest rate cuts from the Federal Reserve [1] Momentum Investing Strategy - Momentum investing is characterized by the strategy of "buying high and selling higher," based on the belief that stocks with established trends are likely to continue in that direction [3] - This strategy has been shown to generate alpha over time and across various market conditions, although it requires skill in detecting trends [4] Screening Parameters for Momentum Stocks - The screening process identifies the top 50 stocks with the best percentage price change over the last 52 weeks, ensuring selection of stocks that have appreciated steadily [5] - From these, the bottom 10 performers over the past week are chosen to identify those experiencing short-term pullbacks [6] - Stocks with a Zacks Rank 1 (Strong Buy) and a Momentum Style Score of B or better are prioritized, indicating a higher probability of success [7] Selected Momentum Stocks - Netflix (NFLX) has seen an 86.2% increase over the past year but a 7.3% decline in the last week, earning a Momentum Score of A [8] - Robinhood Markets (HOOD) has surged 381.3% in the past year but dropped 3.3% last week, also holding a Momentum Score of A [10] - Affirm Holdings (AFRM) has gained 148.7% annually with a 5.2% decline last week, resulting in a Momentum Score of B [11]
Best Momentum Stocks to Buy for July 25th
ZACKSยท 2025-07-25 15:02
Group 1: Stock Highlights - Revolve Group, Inc. (RVLV) has a Zacks Rank 1 with a 7.9% increase in the current year earnings estimate over the last 60 days and a share price gain of 4.8% in the past month compared to the S&P 500's 3.7% [1] - Pharming Group N.V. (PHAR) also holds a Zacks Rank 1, with nearly a 7% increase in the current year earnings estimate over the last 60 days and a share price increase of 19.8% over the last three months, outperforming the S&P 500's 15.2% [2] - Amazon.com, Inc. (AMZN) maintains a Zacks Rank 1, with a 1.5% increase in the current year earnings estimate over the last 60 days and a share price gain of 23.8% over the last three months, again surpassing the S&P 500's 15.2% [3] Group 2: Momentum Scores - Revolve Group has a Momentum Score of A, indicating strong momentum characteristics [1] - Pharming Group has a Momentum Score of B, reflecting solid momentum but slightly less than that of Revolve [2] - Amazon.com has a Momentum Score of A, showcasing its strong momentum in the market [3]
Here's Why Duke Energy (DUK) is a Strong Momentum Stock
ZACKSยท 2025-07-25 14:50
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.Zacks Premium also includes the Zacks Style Scores. What are the Zacks Style Scores? The Zacks Style Sc ...
Large-Cap ETF (SCHX) Hits a New 52-Week High
ZACKSยท 2025-07-24 15:46
Group 1 - Schwab U.S. Large-Cap ETF (SCHX) has reached a 52-week high, increasing 32.2% from its 52-week low of $19.00 per share [1][2] - The ETF provides exposure to the largest U.S. companies, with significant holdings in information technology, financials, and consumer discretionary sectors [1] - The ETF charges an annual fee of 30 basis points [1] Group 2 - The large-cap segment has gained attention due to the recent surge in the stock market, with the S&P 500 reaching new record highs [2] - This surge is attributed to solid corporate earnings, a softer inflation environment, and increasing expectations of interest rate cuts by the Federal Reserve [2] Group 3 - SCHX has a Zacks ETF Rank of 2 (Buy) with a medium risk outlook, indicating potential for continued outperformance [3] - Many sectors within the ETF have a strong Zacks Industry Rank, suggesting further promise for investors [3]
Crescent Energy (CRGY) Shows Fast-paced Momentum But Is Still a Bargain Stock
ZACKSยท 2025-07-24 13:51
Momentum investing is essentially the opposite of the tried-and-tested Wall Street adage -- "buy low and sell high." Investors following this investing style typically avoid betting on cheap stocks and waiting long for them to recover. They believe instead that one could make far more money in lesser time by "buying high and selling higher."Everyone likes betting on fast-moving trending stocks, but it isn't easy to determine the right entry point. These stocks often lose momentum when their future growth po ...