Momentum Investing

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Why Group 1 Automotive (GPI) is a Top Value Stock for the Long-Term
ZACKS· 2025-06-24 14:46
Company Overview - Group 1 Automotive, Inc. is a leading automotive retailer with operations primarily in the United States and the U.K., operating 150 dealerships in the U.S. and 55 in the U.K. [12] - The company sells new and used cars and light trucks, and also offers vehicle financing, insurance, service contracts, maintenance, repair services, and aftermarket automotive products [12]. Investment Ratings - Group 1 Automotive has a Zacks Rank of 3 (Hold) and a VGM Score of A, indicating a solid overall rating [13]. - The company has a Value Style Score of A, supported by attractive valuation metrics such as a forward P/E ratio of 10.96, which may appeal to value investors [13]. Earnings Estimates - In the last 60 days, four analysts have revised their earnings estimates upwards for fiscal 2025, with the Zacks Consensus Estimate increasing by $0.24 to $40.91 per share [13]. - Group 1 Automotive has an average earnings surprise of 4.4%, suggesting potential for positive performance [13]. Investment Consideration - With a solid Zacks Rank and top-tier Value and VGM Style Scores, Group 1 Automotive is recommended for investors' consideration [14].
Fast-paced Momentum Stock Red Robin (RRGB) Is Still Trading at a Bargain
ZACKS· 2025-06-24 13:50
Group 1 - Momentum investing is characterized by the strategy of "buying high and selling higher," contrasting with traditional methods of "buying low and selling high" [1] - Identifying the right entry point for momentum stocks can be challenging, as they may lose momentum if their valuations exceed future growth potential [1] - A safer investment approach involves targeting bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score [2] Group 2 - Red Robin (RRGB) has shown significant price movement, with a 57.7% increase over the past four weeks, indicating strong investor interest [3] - RRGB has also gained 40.5% over the past 12 weeks, demonstrating its ability to maintain momentum over a longer period [4] - The stock has a beta of 2.39, suggesting it moves 139% more than the market, indicating fast-paced momentum [4] Group 3 - RRGB holds a Momentum Score of B, suggesting it is an opportune time to invest in the stock to capitalize on its momentum [5] - The stock has received a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which typically attract more investor interest [6] - RRGB is currently trading at a Price-to-Sales ratio of 0.07, indicating it is undervalued at 7 cents for each dollar of sales [6] Group 4 - RRGB appears to have significant potential for further price appreciation, supported by its fast-paced momentum characteristics [7] - There are additional stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, suggesting further investment opportunities [7] - Zacks offers over 45 Premium Screens tailored to different investing styles, providing various strategies to identify winning stocks [8]
Why Fast-paced Mover GMS (GMS) Is a Great Choice for Value Investors
ZACKS· 2025-06-24 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 for fast-moving stocks, which can lead to limited upside or potential downside if growth fails to justify high valuations [2] - A safer approach may involve investing in bargain stocks that have recently shown price momentum, utilizing tools like the Zacks Momentum Style Score to identify promising candidates [3] Group 2: GMS Stock Analysis - GMS (GMS) has demonstrated significant price momentum, with a four-week price change of 36.4% and a 12-week gain of 37.2%, indicating strong investor interest [4][5] - The stock has a beta of 1.62, suggesting it moves 62% more than the market, reflecting its fast-paced momentum [5] - GMS holds a Momentum Score of A, indicating a favorable time to invest based on momentum trends [6] Group 3: Earnings and Valuation - GMS has seen upward revisions in earnings estimates, earning a Zacks Rank 2 (Buy), which is associated with strong momentum effects as analysts raise their estimates [7] - The stock is currently trading at a Price-to-Sales ratio of 0.69, suggesting it is undervalued, as investors pay only 69 cents for each dollar of sales [7] Group 4: Additional Investment Opportunities - Besides GMS, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [9]
Best Momentum Stock to Buy for June 23rd
ZACKS· 2025-06-23 13:26
Group 1: Euroseas (ESEA) - Euroseas operates in the dry cargo, drybulk, and container shipping markets and has a Zacks Rank 1 (Strong Buy) [1] - The Zacks Consensus Estimate for Euroseas' current year earnings increased by 4.4% over the last 60 days [1] - Euroseas' shares gained 43.8% over the last three months compared to the S&P 500's gain of 3.5%, and the company has a Momentum Score of A [1] Group 2: Grupo Aeroportuario del Sureste (ASR) - Grupo Aeroportuario del Sureste is a Mexican airport operator with concessions for several airports in southeast Mexico and has a Zacks Rank 1 [2] - The Zacks Consensus Estimate for Grupo Aeroportuario del Sureste's current year earnings increased by 3.5% over the last 60 days [2] - Grupo Aeroportuario del Sureste's shares gained 13.4% over the last three months compared to the S&P 500's gain of 3.5%, and the company has a Momentum Score of A [3] Group 3: Dundee Precious Metals (DPMLF) - Dundee Precious Metals is engaged in the acquisition, exploration, development, mining, and processing of precious metals and has a Zacks Rank 1 [3] - The Zacks Consensus Estimate for Dundee Precious Metals' current year earnings increased by 46.2% over the last 60 days [3] - Dundee Precious Metals' shares gained 19.5% over the last three months compared to the S&P 500's gain of 3.5%, and the company has a Momentum Score of B [4]
Are You Looking for a Top Momentum Pick? Why Noah Holdings (NOAH) is a Great Choice
ZACKS· 2025-06-20 17:00
Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.While many investors like to look for moment ...
2 Red-Hot Stocks Suited for Momentum Investors
ZACKS· 2025-06-20 16:16
Key Takeaways Stocks making new highs tend to make even higher highs. Both PM and STRL shares have benefited from strong quarterly results. Both companies' near-term outlooks allude to further gains. When stocks are cruising near all-time or 52-week highs, it reflects considerable bullishness with trends where buyers are in control. Stocks making new highs tend to make even higher highs, particularly when analysts' positive earnings estimate revisions are present. That’s been precisely the case for Phil ...
Fast-paced Momentum Stock Accel Entertainment (ACEL) Is Still Trading at a Bargain
ZACKS· 2025-06-20 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 for fast-moving stocks, which can 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, utilizing tools like the Zacks Momentum Style Score to identify potential opportunities [3] Group 2: Accel Entertainment (ACEL) Analysis - Accel Entertainment (ACEL) has shown a price increase of 0.6% over the past four weeks, indicating growing investor interest [4] - The stock has gained 10.1% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [5] - ACEL has a Momentum Score of B, suggesting it is an opportune time to invest in the stock [6] - The stock has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which typically attract more investor interest [7] - ACEL is trading at a Price-to-Sales ratio of 0.76, indicating it is reasonably valued at 76 cents for each dollar of sales [7] Group 3: Additional Investment Opportunities - Besides ACEL, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [9]
Federated Hermes (FHI) is a Top-Ranked Value Stock: Should You Buy?
ZACKS· 2025-06-19 14:45
Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores are designed to help investors identify stocks with the highest potential to outperform the market in the short term [2] Zacks Style Scores Overview - The Style Scores categorize stocks into four main types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] - Value Score identifies undervalued stocks using financial ratios [3] - Growth Score assesses a company's future growth potential based on earnings and sales [4] - Momentum Score evaluates stocks based on recent price trends and earnings estimate changes [5] - VGM Score combines all three styles to highlight stocks with the best overall characteristics [6] Zacks Rank and Style Scores Interaction - The Zacks Rank utilizes earnings estimate revisions to guide investors in stock selection [7] - Stocks rated 1 (Strong Buy) have historically outperformed the S&P 500, achieving an average annual return of +25.41% since 1988 [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] Company Spotlight: Federated Hermes - Federated Hermes, Inc. is a global asset manager with $839.8 billion in assets under management as of March 31, 2025 [11] - The company currently holds a Zacks Rank of 3 (Hold) and a VGM Score of B, indicating solid performance metrics [11] - Recent analyst revisions have increased the earnings estimate for fiscal 2025 by $0.42 to $4.33 per share, with an average earnings surprise of 13.1% [12]
Creative Realities, Inc. (CREX) Shows Fast-paced Momentum But Is Still a Bargain Stock
ZACKS· 2025-06-18 13:51
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 Characteristics - Momentum investing can be risky as stocks may lose momentum when their valuations exceed future growth potential [2] - A safer approach involves investing in bargain stocks that exhibit recent price momentum [3] Group 2: Creative Realities, Inc. (CREX) Analysis - CREX has shown significant price increases, with an 80.8% rise over the past four weeks [4] - The stock gained 82.6% over the past 12 weeks, indicating strong long-term momentum [5] - CREX has a beta of 1.33, suggesting it moves 33% more than the market [5] - The stock has a Momentum Score of A, indicating a favorable entry point for investors [6] - CREX has a Zacks Rank 1 (Strong Buy) due to upward revisions in earnings estimates, which attract more investors [7] - The stock is trading at a Price-to-Sales ratio of 0.80, indicating it is undervalued at 80 cents for each dollar of sales [7] Group 3: Investment Opportunities - CREX is identified as a strong candidate for investment, with potential for further price increases [8] - There are additional stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, suggesting more investment opportunities [8]
Despite Fast-paced Momentum, NCR Voyix (VYX) Is Still a Bargain Stock
ZACKS· 2025-06-18 13:51
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 Characteristics - Momentum investing can be risky as stocks may lose momentum when their valuations exceed future growth potential [2] - A safer approach involves investing in bargain stocks that exhibit recent price momentum [3] Group 2: NCR Voyix (VYX) Stock Analysis - NCR Voyix (VYX) has shown a price increase of 11.2% over the past four weeks, indicating growing investor interest [4] - VYX gained 19.1% over the past 12 weeks and has a beta of 1.65, suggesting it moves 65% more than the market [5] - VYX has a Momentum Score of B, indicating a favorable time to invest [6] Group 3: Earnings Estimates and Valuation - VYX has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which attract more investors [7] - The stock is trading at a Price-to-Sales ratio of 0.57, indicating it is reasonably valued at 57 cents for each dollar of sales [7] Group 4: Additional Investment Opportunities - Besides VYX, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen [8] - Zacks offers over 45 Premium Screens to help identify potential winning stock picks based on various investing styles [9]