Momentum Investing

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5 Momentum Picks to Tap Market Rally in June After an Impressive May
ZACKS· 2025-06-02 14:51
Key Takeaways Major Indexes recorded their strongest month in May since November 2023. Five Zacks Top Rank stocks with Momentum Score A are poised to benefit from June's bullish sentiment. Improved earnings estimates and sector strength support picks like CYBR, KGC, NWG, RYAAY, and PCTY.Wall Street saw an impressive rally in May after severe volatility in the previous two months. The three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — were up 3.9%, 6.2% and 9.6%, respectively. The ...
Best Momentum Stock to Buy for June 2nd
ZACKS· 2025-06-02 13:20
Group 1: Wolters Kluwer - Wolters Kluwer is a leading global information services and publishing company, providing products and services for professionals in various sectors including health, tax, accounting, corporate, financial services, legal, and regulatory [1] - The company has a Zacks Rank of 1 (Strong Buy) and its current year earnings estimate has increased by 4% over the last 60 days [1] - Wolters Kluwer's shares have gained 13.7% over the last three months, significantly outperforming the S&P 500, which gained only 0.9% during the same period [2] Group 2: Alexander's - Alexander's is a real estate investment trust engaged in leasing, managing, developing, and redeveloping properties [2] - The company also holds a Zacks Rank of 1 and has seen a 10.3% increase in its current year earnings estimate over the last 60 days [2] - Alexander's shares have increased by 7.3% over the last three months, again outperforming the S&P 500's 0.9% gain [3]
Best Momentum Stock to Buy for May 29th
ZACKS· 2025-05-29 15:00
Group 1: Alexander's (ALX) - Alexander's is a real estate investment trust engaged in leasing, managing, developing, and redeveloping properties, with a Zacks Rank 1 (Strong Buy) [1] - The Zacks Consensus Estimate for Alexander's current year earnings has increased by 10.3% over the last 60 days [1] - Alexander's shares gained 5% over the last three months, outperforming the S&P 500's gain of 0.6%, and the company has a Momentum Score of A [2] Group 2: Wolters Kluwer (WTKWY) - Wolters Kluwer is a leading global information services and publishing company providing products and services for professionals in various sectors, with a Zacks Rank 1 [3] - The Zacks Consensus Estimate for Wolters Kluwer's current year earnings has increased by 4% over the last 60 days [3] - Wolters Kluwer's shares gained 14.4% over the last three months, significantly outperforming the S&P 500's gain of 0.6%, and the company has a Momentum Score of B [4]
Why UGI (UGI) is a Top Value Stock for the Long-Term
ZACKS· 2025-05-29 14:46
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 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 Style Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales [3] Growth Score - The Growth Style Score assesses a company's future earnings, sales, and cash flow to find stocks with sustainable growth potential [4] Momentum Score - The Momentum Style Score evaluates price trends and earnings estimate changes to identify favorable buying opportunities for high-momentum stocks [5] VGM Score - The VGM Score combines Value, Growth, and Momentum Scores, providing a comprehensive indicator for stock selection [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 produced an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [8] Stock Selection Strategy - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B to maximize potential returns [9][10] Company Spotlight: UGI Corporation - UGI Corporation is a holding company involved in the distribution and marketing of energy products, serving over 2.6 million customers [11] - UGI holds a Zacks Rank of 2 (Buy) and has a VGM Score of A, indicating strong investment potential [12] - The company has a forward P/E ratio of 11.45 and has seen upward revisions in earnings estimates, with a Zacks Consensus Estimate of $3.11 per share for fiscal 2025 [12][13]
NCR Voyix (VYX) Is Attractively Priced Despite Fast-paced Momentum
ZACKS· 2025-05-29 13:50
Group 1 - Momentum investing focuses on "buying high and selling higher" rather than traditional "buying low and selling high" strategies [1] - Fast-moving trending stocks can lose momentum if their future growth does not justify their high valuations, leading to potential downside risks for investors [2] - A safer investment approach involves targeting bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score [3] Group 2 - NCR Voyix (VYX) has shown a significant price increase of 29.2% over the past four weeks, indicating growing investor interest [4] - VYX has gained 4.1% over the past 12 weeks and has a beta of 1.52, suggesting it moves 52% more than the market [5] - VYX holds a Momentum Score of B, indicating a favorable entry point for investors looking to capitalize on its momentum [6] Group 3 - VYX has received a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which typically attract more investor interest [7] - The stock is currently trading at a Price-to-Sales ratio of 0.53, suggesting it is undervalued at 53 cents for each dollar of sales [7] - VYX is positioned for further growth, supported by its fast-paced momentum and reasonable valuation [8] Group 4 - There are additional stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, providing further investment opportunities [8] - Zacks offers over 45 Premium Screens tailored to different investing styles, aiding in the identification of potential winning stocks [9]
Here's Why Regions Financial (RF) is a Strong Value Stock
ZACKS· 2025-05-28 14:46
Core Insights - Zacks Premium offers tools for investors to enhance their stock market engagement and confidence through daily updates, research reports, and stock screens [1] - The Zacks Style Scores provide a framework for evaluating stocks based on value, growth, and momentum, aiding in identifying securities likely to outperform the market [2] Zacks Style Scores Overview - Stocks are rated A, B, C, D, or F based on their value, growth, and momentum characteristics, with higher scores indicating a better chance of outperforming [3] - The Value Score identifies attractive stocks using ratios like P/E, PEG, and Price/Sales, appealing to value investors [4] - The Growth Score focuses on a company's financial health and future outlook, assessing projected and historical earnings, sales, and cash flow [5] - The Momentum Score leverages price trends and earnings estimate changes to identify favorable investment opportunities [6] - The VGM Score combines value, growth, and momentum scores to highlight stocks with the best overall potential [6] Zacks Rank and Style Scores Interaction - The Zacks Rank is a proprietary model based on earnings estimate revisions, which has shown a strong historical performance with 1 (Strong Buy) stocks averaging a +25.41% annual return since 1988 [7][8] - To maximize returns, investors should consider stocks with a Zacks Rank of 1 or 2 alongside Style Scores of A or B [9] - Stocks with lower ranks but high Style Scores may still face downward price pressure due to negative earnings outlooks [10] Company Spotlight: Regions Financial - Regions Financial Corporation is a financial holding company based in Birmingham, AL, offering a range of banking and financial services [11] - The company holds a Zacks Rank of 3 (Hold) and a VGM Score of A, indicating solid performance potential [11] - Regions Financial has a Value Style Score of B, supported by a forward P/E ratio of 9.67, making it attractive to value investors [12] - Recent earnings estimates for fiscal 2025 have been revised upward, with the Zacks Consensus Estimate increasing to $2.24 per share, alongside an average earnings surprise of 6.7% [12]
Despite Fast-paced Momentum, Oatly Group (OTLY) Is Still a Bargain Stock
ZACKS· 2025-05-28 13:51
Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than traditional strategies of "buying low and selling high" [1][2] 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] - A safer approach 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: Oatly Group AB (OTLY) Analysis - Oatly Group AB has shown a price increase of 7.6% over the past four weeks, indicating growing investor interest [4] - The stock has gained 25.5% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [5] - OTLY has a high beta of 1.88, suggesting it moves 88% more than the market in either direction, indicating fast-paced momentum [5] - The stock holds a Momentum Score of A, suggesting it is an opportune time to invest [6] - OTLY has a Zacks Rank 2 (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 0.40, indicating it is relatively undervalued, as investors pay only 40 cents for each dollar of sales [7] Group 3: Additional Investment Opportunities - Besides OTLY, 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]
TTEC (TTEC) Shows Fast-paced Momentum But Is Still a Bargain Stock
ZACKS· 2025-05-28 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 ...
Why Fast-paced Mover Puma Biotech (PBYI) Is a Great Choice for Value Investors
ZACKS· 2025-05-28 13:51
Core Viewpoint - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investing can be risky as stocks may lose momentum when their valuations exceed future growth potential [1] - Identifying the right entry point for momentum stocks is challenging, and investors may end up with expensive shares that have limited upside [1] Group 2: Bargain Stocks with Momentum - Investing in bargain stocks that have recently shown price momentum may be a safer strategy [2] - The Zacks Momentum Style Score helps identify strong momentum stocks, while the 'Fast-Paced Momentum at a Bargain' screen identifies fast-moving stocks that are still attractively priced [2] Group 3: Puma Biotech (PBYI) Analysis - Puma Biotech (PBYI) has a four-week price change of 13.2%, indicating strong recent price momentum [3] - PBYI gained 1.5% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [4] - The stock has a beta of 1.29, suggesting it moves 29% higher than the market in either direction [4] Group 4: Valuation and Earnings Estimates - PBYI has a Momentum Score of A, indicating a favorable time to invest [5] - The stock has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which attract more investor interest [6] - PBYI is trading at a Price-to-Sales ratio of 0.73, meaning investors pay 73 cents for each dollar of sales, indicating a reasonable valuation [6] Group 5: Additional Investment Opportunities - Besides PBYI, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen [7] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to find potential winning stocks [8]
Here's Why Momentum in Delcath Systems (DCTH) Should Keep going
ZACKS· 2025-05-28 13:51
Core Viewpoint - The article emphasizes the importance of identifying and maintaining trends in short-term investing, highlighting that sound fundamentals and positive earnings estimates are crucial for sustaining momentum in stocks [1]. Group 1: Recent Price Strength Screen - The "Recent Price Strength" screen is a unique short-term trading strategy that helps investors shortlist stocks with strong fundamentals capable of maintaining an uptrend [2]. - Stocks that pass this screen are typically trading in the upper portion of their 52-week high-low range, indicating bullish sentiment [2]. Group 2: Delcath Systems, Inc. (DCTH) - Delcath Systems, Inc. (DCTH) has shown a solid price increase of 19.2% over the past 12 weeks, indicating investor confidence in its potential upside [3]. - DCTH has experienced a price increase of 34.5% over the last four weeks, suggesting that the upward trend is still intact [4]. - Currently, DCTH is trading at 84.7% of its 52-week high-low range, indicating a potential breakout opportunity [4]. Group 3: Fundamental Strength - DCTH holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [5]. - The Zacks Rank system has a strong track record, with Zacks Rank 1 stocks averaging an annual return of +25% since 1988 [6]. - DCTH also has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [6]. Group 4: Additional Investment Opportunities - Besides DCTH, there are several other stocks that meet the criteria of the "Recent Price Strength" screen, suggesting further investment opportunities [7]. - The article encourages exploring over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [7].