Momentum investing
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Why Jazz Pharmaceuticals (JAZZ) is a Top Momentum Stock for the Long-Term
ZACKS· 2025-03-24 14:50
Core Insights - Zacks Premium offers various tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1][2] Zacks Style Scores - Zacks Style Scores are complementary indicators that rate stocks based on value, growth, and momentum methodologies, helping investors identify stocks likely to outperform the market in the short term [2][3] - Stocks are rated from A to F, with A indicating the highest potential for outperformance [3] Value Score - The Value Score identifies attractive stocks using ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, appealing to value investors seeking undervalued stocks [3] Growth Score - The Growth Score focuses on a company's financial health and future outlook, analyzing projected and historical earnings, sales, and cash flow to find stocks with sustainable growth [4] Momentum Score - The Momentum Score helps investors capitalize on price trends by analyzing short-term price changes and earnings estimate revisions [5] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive rating that highlights stocks with strong value, growth potential, and positive momentum [6] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investors in building successful portfolios [7] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +25.41%, significantly outperforming the S&P 500 [8] Stock Selection Strategy - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [10] - Stocks with lower ranks (3 Hold, 4 Sell, 5 Strong Sell) should still have favorable Style Scores to mitigate downside risk [11] Company Spotlight: Jazz Pharmaceuticals - Jazz Pharmaceuticals, based in Dublin, is a specialty biopharmaceutical company focusing on neuroscience and oncology, currently rated 2 (Buy) with a VGM Score of A [12] - The company has seen a 2% increase in shares over the past four weeks, with 10 analysts raising earnings estimates for fiscal 2025, leading to a consensus estimate increase of $1.27 to $23.33 per share [12][13] - Jazz Pharmaceuticals has an average earnings surprise of 3.2%, making it a strong candidate for investors [13]
HF FOODS GROUP (HFFG) Shows Fast-paced Momentum But Is Still a Bargain Stock
ZACKS· 2025-03-21 13:50
Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than the traditional "buying low and selling high" approach, aiming for quicker profits [1] Group 1: Momentum Investing Characteristics - Fast-moving trending stocks can be difficult to enter at the right time, as they may lose momentum if future growth does not justify high valuations [2] - Investing in bargain stocks that have recently shown price momentum can be a safer strategy [3] Group 2: HF Foods Group Inc. (HFFG) Analysis - HFFG has shown significant price momentum with a four-week price change of 64.4%, indicating strong investor interest [4] - The stock has gained 8.9% over the past 12 weeks and has a beta of 1.61, suggesting it moves 61% more than the market [5] - HFFG has a Momentum Score of A, indicating a favorable time to invest [6] - The stock has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which attract more investors [7] - HFFG is trading at a low Price-to-Sales ratio of 0.16, meaning investors pay only 16 cents for each dollar of sales, indicating a reasonable valuation [7] Group 3: Additional Investment Opportunities - Besides HFFG, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, suggesting further investment opportunities [8] - Various Zacks Premium Screens are available to help identify winning stock picks based on different investing styles [9]
Buy 3 Momentum Anomaly Stocks as Tariffs Take a Toll on Markets
ZACKS· 2025-03-13 14:45
Group 1: Market Overview - The U.S. equity markets experienced significant volatility due to President Trump's tariff policies, particularly the 25% tariffs on steel and aluminum imports from Canada and Mexico, which led to retaliatory measures from Canada and the European Union [1] - Canada proposed a 25% import duty on over $20 billion worth of U.S. goods, while the European Union announced counter-tariffs on $28.33 billion worth of U.S. imports starting in April [1] Group 2: Economic Indicators - A better-than-expected Consumer Price Index (CPI) reading for February showed a 0.2% increase from the previous month and a 2.8% increase year-over-year, alleviating some recession concerns [2] Group 3: Investment Strategies - Momentum investing is highlighted as a strategy to capitalize on current trends, based on the principle of "buying high and selling higher," which relies on the tendency of stocks to continue in the same direction once a trend is established [3] - Momentum strategies have been effective in generating alpha over time and across various market conditions, although they require skill in trend detection [4] Group 4: Screening Parameters for Momentum Stocks - The screening process for momentum anomaly stocks includes selecting the top 50 stocks with the best percentage price change over the last 52 weeks, followed by identifying the 10 worst performers over the past week to find those experiencing a short-term pullback [5][6] - Stocks with a Zacks Rank 1 (Strong Buy) and a Momentum Style Score of A or B are likely to outperform others [7] Group 5: Featured Stocks - Masimo Corporation (MASI) has seen a 25% increase in stock price over the past year but a 9.9% decline in the past week, with a Momentum Score of A [9] - Robinhood Markets, Inc. (HOOD) has experienced a 126.8% increase in the past year but a 19.1% decline in the past week, also holding a Momentum Score of A [10] - Discover Financial Services (DFS) has surged 29.9% in the past year but declined 9.6% in the past week, maintaining a Momentum Score of A [11]
Here Is Why Bargain Hunters Would Love Fast-paced Mover Tree.com (TREE)
ZACKS· 2025-03-13 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 - Momentum investors often face challenges in determining the right entry point, as stocks may lose momentum when their valuations exceed future growth potential [2] - A safer strategy involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify such opportunities [3] Group 2: Tree.com (TREE) Analysis - Tree.com (TREE) has shown a price increase of 3.1% over the past four weeks, indicating growing investor interest [4] - The stock has gained 17.2% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [5] - TREE has a beta of 2.14, suggesting it moves 114% higher than the market in either direction, indicating fast-paced momentum [5] - With a Momentum Score of A, TREE is positioned as a favorable entry point for investors looking to capitalize on momentum [6] - TREE has a Zacks Rank 1 (Strong Buy) due to upward revisions in earnings estimates, which typically attract more investor interest [7] - The stock is trading at a Price-to-Sales ratio of 0.68, indicating it is reasonably valued at 68 cents for each dollar of sales [7] Group 3: Investment Opportunities - In addition to TREE, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, suggesting further investment opportunities [8] - The Zacks Premium Screens offer over 45 different strategies tailored to help investors find winning stock picks [9]
What Makes Ameren (AEE) a Strong Momentum Stock: Buy Now?
ZACKS· 2025-03-07 18:00
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: Ameren (AEE) - Ameren currently holds a Momentum Style Score of B, indicating a solid momentum pick [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, AEE shares increased by 3.06%, outperforming the Zacks Utility - Electric Power industry, which rose by 1.06% [5] - In the last quarter, AEE shares gained 8.19%, and over the past year, they have increased by 32.92%, while the S&P 500 saw movements of -5.43% and 13.83%, respectively [6] - The average 20-day trading volume for AEE is 2,052,325 shares, indicating a bullish sentiment with rising stock prices [7] Earnings Outlook - In the past two months, three earnings estimates for AEE have been revised upwards, with no downward revisions, leading to an increase in the consensus estimate from $4.93 to $4.94 [9] - For the next fiscal year, two estimates have also moved upwards, reflecting positive sentiment regarding AEE's earnings potential [9] Conclusion - Considering the positive performance metrics and earnings outlook, AEE is positioned as a 2 (Buy) stock with a Momentum Score of B, making it a strong candidate for near-term investment [10][11]
Are You Looking for a Top Momentum Pick? Why Intrepid Potash (IPI) is a Great Choice
ZACKS· 2025-03-07 18:00
Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the aim of buying high and selling higher, capitalizing on established price movements [1] - The Zacks Momentum Style Score helps investors identify stocks with strong momentum by evaluating various metrics [2] Group 2: Intrepid Potash (IPI) Performance - Intrepid Potash currently holds a Momentum Style Score of A and a Zacks Rank of 2 (Buy), indicating strong potential for outperformance [3][4] - Over the past week, IPI shares increased by 2.35%, while the Zacks Fertilizers industry declined by 1.78% [6] - In the last month, IPI's price change was 3.2%, outperforming the industry's 0.63% [6] - IPI shares have risen by 5.63% over the past quarter and 16.78% over the last year, compared to the S&P 500's performance of -5.43% and 13.83%, respectively [7] Group 3: Trading Volume and Earnings Outlook - IPI's average 20-day trading volume is 131,979 shares, which serves as a bullish indicator when combined with rising stock prices [8] - In terms of earnings outlook, there has been one upward revision in earnings estimates for the current fiscal year, raising the consensus estimate from -$0.45 to -$0.16 [10] - For the next fiscal year, one estimate has also moved upwards, with no downward revisions noted [10] Group 4: Conclusion - Given the strong performance metrics and positive earnings outlook, Intrepid Potash is positioned as a solid momentum pick for investors [12]
Are You Looking for a Top Momentum Pick? Why XPeng Inc. Sponsored ADR (XPEV) is a Great Choice
ZACKS· 2025-03-05 18:01
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: XPeng Inc. (XPEV) - XPeng Inc. 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] Price Performance - Over the past week, XPEV shares have increased by 16.79%, significantly outperforming the Zacks Automotive - Foreign industry, which rose by only 0.14% [5] - In a longer timeframe, XPEV shares have risen by 19.01% over the past month, compared to the industry's 2.22% [5] - Over the last quarter, XPEV shares have surged by 53.76%, and over the past year, they have gained 120.98%, while the S&P 500 has seen a decline of 4.73% and a modest increase of 14.1% respectively [6] Trading Volume - The average 20-day trading volume for XPEV is 12,332,183 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - Recent earnings estimate revisions show one upward revision and one downward revision for the current fiscal year, leading to a consensus estimate increase from -$0.97 to -$0.96 [9] - For the next fiscal year, two estimates have moved upwards with no downward revisions, indicating positive sentiment [9] Conclusion - Considering the strong momentum indicators and positive earnings outlook, XPEV is identified as a 2 (Buy) stock with a Momentum Score of A, making it a potential candidate for near-term investment [11]
Barclays (BCS) Is Up 2.02% in One Week: What You Should Know
ZACKS· 2025-02-27 18:00
Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the aim of buying high and selling higher, capitalizing on established price movements [1] - The Zacks Momentum Style Score helps investors identify stocks with momentum by focusing on key metrics [2] Group 2: Barclays (BCS) Performance - Barclays currently holds a Momentum Style Score of A and a Zacks Rank of 1 (Strong Buy), indicating strong potential for outperformance [3][4] - Over the past week, BCS shares increased by 2.02%, outperforming the Zacks Banks - Foreign industry, which rose by 0.17% [6] - In the last month, BCS shares rose by 7.57%, compared to the industry's 5.62% [6] - Over the past quarter, BCS shares increased by 17.94%, and over the last year, they gained 82.85%, while the S&P 500 moved -0.72% and 18.98%, respectively [7] Group 3: Trading Volume and Earnings Outlook - BCS's average 20-day trading volume is 19,330,404 shares, indicating a bullish sign with rising stock prices [8] - In terms of earnings outlook, BCS's consensus estimate increased from $1.55 to $2.02 over the past 60 days, with one estimate moving higher and none lower for the full year [10] - For the next fiscal year, two estimates have moved upwards with no downward revisions [10] Group 4: Conclusion - Considering the strong performance metrics and positive earnings outlook, BCS is positioned as a promising stock for near-term investment [12]
Progressive (PGR) is a Great Momentum Stock: Should You Buy?
ZACKS· 2025-02-26 18:00
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][2]. Company Overview: Progressive (PGR) - Progressive currently holds a Momentum Style Score of A, indicating strong potential for momentum investing [3]. - The company has a Zacks Rank of 2 (Buy), suggesting it is positioned for outperformance in the market [4]. Performance Metrics - Over the past week, PGR shares increased by 1.37%, while the Zacks Insurance - Property and Casualty industry declined by 1.18% [6]. - In a longer timeframe, PGR's monthly price change is 13.66%, significantly outperforming the industry's 1.72% [6]. - Over the last quarter, PGR shares rose by 6.06%, and over the past year, they increased by 44.93%, compared to the S&P 500's movements of -0.17% and 18.49%, respectively [7]. Trading Volume - PGR's average 20-day trading volume is 2,397,913 shares, which serves as a bullish indicator when combined with rising stock prices [8]. Earnings Outlook - In the past two months, 8 earnings estimates for PGR have been revised upwards, while only 1 has been revised downwards, leading to an increase in the consensus estimate from $13.98 to $14.79 [10]. - For the next fiscal year, 6 estimates have moved upwards with no downward revisions during the same period [10]. Conclusion - Given the strong performance metrics and positive earnings outlook, PGR is positioned as a solid momentum pick with a Momentum Score of A and a Zacks Rank of 2 (Buy) [12].