Momentum Investing
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Ezcorp (EZPW) is a Great Momentum Stock: Should You Buy?
ZACKS· 2025-08-25 17:01
Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the aim of buying high and selling even higher [1] - The Zacks Momentum Style Score helps define momentum characteristics, with Ezcorp (EZPW) currently holding a Momentum Style Score of B [2] - Style Scores complement the Zacks Rank, which has a strong track record of outperformance, with EZPW rated as 2 (Buy) [3] Group 2: Performance Metrics - EZPW shares have increased by 5.17% over the past week, outperforming the Zacks Financial - Consumer Loans industry, which rose by 3.46% [5] - Over the past quarter, EZPW shares have gained 18.96%, and over the last year, they have increased by 35.02%, compared to the S&P 500's gains of 11.03% and 17.4%, respectively [6] - The average 20-day trading volume for EZPW is 810,302 shares, indicating a bullish sign when combined with rising stock prices [7] Group 3: Earnings Outlook - Recent earnings estimate revisions show one upward revision for the full year, increasing the consensus estimate from $1.28 to $1.31 [9] - For the next fiscal year, one estimate has moved upwards with no downward revisions in the same period [9] - These factors contribute to EZPW's 2 (Buy) rating and a Momentum Score of B, suggesting it is a promising pick for near-term investment [11]
Best Momentum Stocks to Buy for August 25th
ZACKS· 2025-08-25 15:00
Core Insights - Three stocks with strong momentum and buy rank are highlighted for investors: TAT Technologies Ltd., Lumentum Holdings Inc., and Arista Networks, Inc. [1][2][3] Group 1: TAT Technologies Ltd. (TATT) - TAT Technologies is a provider of solutions and services to the aerospace and defense industries [1] - The Zacks Consensus Estimate for TAT's current year earnings increased by 10.7% over the last 60 days [1] - TAT's shares gained 21.9% over the last three months, outperforming the S&P 500's 11.4% increase [2] - The company has a Momentum Score of A [2] Group 2: Lumentum Holdings Inc. (LITE) - Lumentum is involved in optical and photonic products [2] - The Zacks Consensus Estimate for Lumentum's current year earnings increased by 20.5% over the last 60 days [2] - Lumentum's shares surged by 57.5% over the last three months, significantly outperforming the S&P 500's 11.4% increase [2] - The company also possesses a Momentum Score of A [2] Group 3: Arista Networks, Inc. (ANET) - Arista Networks specializes in cloud networking solutions [3] - The Zacks Consensus Estimate for Arista's current year earnings increased by 9.8% over the last 60 days [3] - Arista's shares rose by 46.1% over the last three months, again outperforming the S&P 500's 11.4% increase [3] - The company has a Momentum Score of A [3]
Here's Why Zoom Communications (ZM) is a Strong Growth Stock
ZACKS· 2025-08-25 14:45
Core Insights - Zacks Premium provides various tools for investors to enhance their stock market strategies and confidence [1] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market in the short term [2] Zacks Style Scores Overview - Stocks are rated based on value, growth, and momentum characteristics, with scores ranging from A to F, where A indicates the highest potential for outperformance [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] Value Score - The Value Score identifies attractive stocks based on valuation ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow, appealing to value investors [3] Growth Score - The Growth Score assesses stocks based on projected and historical earnings, sales, and cash flow, targeting growth investors [4] Momentum Score - The Momentum Score evaluates stocks based on price trends and earnings estimate changes, assisting momentum investors in timing their purchases [5] VGM Score - The VGM Score combines the three Style Scores to highlight stocks with the best overall value, growth, and momentum characteristics [6] Zacks Rank Integration - The Zacks Rank utilizes earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks historically yielding an average annual return of +23.75% since 1988, significantly outperforming the S&P 500 [7][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, while also considering earnings estimate trends [10][11] Company Spotlight: Zoom Video Communications - Zoom Video Communications is currently rated 2 (Buy) on the Zacks Rank, with a VGM Score of B, benefiting from increased demand for remote communication tools [12] - The company is projected to have year-over-year earnings growth of 1.1% for the current fiscal year, with an upward revision in earnings estimates [13]
Despite Fast-paced Momentum, Sally Beauty (SBH) Is Still a Bargain Stock
ZACKS· 2025-08-25 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 - Momentum investing can be risky as stocks may lose momentum if their valuations exceed future growth potential, leading to potential losses for investors [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 such opportunities [3] Group 2: Case Study - Sally Beauty (SBH) - Sally Beauty (SBH) has shown a significant price increase of 30.9% over the past four weeks, indicating growing investor interest [4] - Over the past 12 weeks, SBH's stock gained 55.8%, with a beta of 1.3, suggesting it moves 30% more than the market [5] - SBH has a Momentum Score of B, indicating a favorable time to invest based on its momentum [6] Group 3: Earnings Estimates and Valuation - SBH 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 0.36, suggesting it is undervalued at 36 cents for each dollar of sales [7] Group 4: Additional Opportunities - Besides SBH, 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]
Bionano Genomics (BNGO) Is Attractively Priced Despite Fast-paced Momentum
ZACKS· 2025-08-22 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 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: Bionano Genomics, Inc. (BNGO) - BNGO has shown a significant price increase of 19.4% over the past four weeks, indicating growing investor interest [4] - The stock has gained 13.2% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [5] - BNGO has a high beta of 2.06, suggesting it moves 106% 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] - BNGO has 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 0.70, indicating it is reasonably valued at 70 cents for each dollar of sales [7] Group 3: Additional Investment Opportunities - Besides BNGO, 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]
Stock Screening Made Simple
ZACKS· 2025-08-21 22:52
Core Insights - Stock screening is a valuable tool for investors to navigate numerous options and focus on preferred investment parameters [1][10] - Zacks offers a variety of pre-built screens tailored to different investment strategies, including growth, value, momentum, and income [11] Screening Parameters - Screening parameters serve as essential criteria for filtering stocks, akin to ingredients in a recipe, allowing investors to exclude irrelevant information [3] - Parameters can be customized for various investing styles, such as momentum, value, growth, or income-based strategies [2][3] Value Investing - Value investors can utilize parameters like Price-to-Earnings (P/E) ratio, Price-to-Sales (P/S) ratio, and Price-to-Book (P/B) ratio to identify high-quality stocks trading at a discount [4] Momentum Investing - Momentum investing focuses on stocks experiencing buying pressure, with parameters including percentage price change over the last month, average volume, and price as a percentage of the 52-week high-low range [5] Growth Investing - Growth-oriented strategies target companies expected to achieve above-average sales and earnings growth, with key parameters including last year's earnings and sales growth rates, expected growth rates for the current year, and long-term expected EPS growth rate [6][7] Income Investing - Income-focused investing emphasizes dividend-paying stocks, with parameters such as current dividend yield and 5-year historical dividend growth rate to identify stable investments [8]
FirstCash Holdings (FCFS) is a Great Momentum Stock: Should You Buy?
ZACKS· 2025-08-21 17:01
Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the strategy of "buying high, hoping to sell even higher" [1] - The Zacks Momentum Style Score helps investors identify stocks with momentum by focusing on key metrics [2] Group 2: FirstCash Holdings (FCFS) Analysis - FirstCash Holdings currently holds a Momentum Style Score of B and a Zacks Rank of 2 (Buy) [3][4] - FCFS shares have increased by 1.55% over the past week, while the Zacks Financial Transaction Services industry has risen by 2.47% [6] - Over the last quarter, FCFS shares have gained 9.8%, and 18.59% over the past year, outperforming the S&P 500's gains of 7.98% and 15.57%, respectively [7] - The average 20-day trading volume for FCFS is 385,679 shares, indicating a bullish sign if the stock rises with above-average volume [8] Group 3: Earnings Outlook - In the past two months, two earnings estimates for FCFS have moved higher, increasing the consensus estimate from $7.93 to $8.03 [10] - For the next fiscal year, two estimates have also moved upwards, with no downward revisions [10] Group 4: Conclusion - FCFS is positioned as a 2 (Buy) stock with a Momentum Score of B, making it a potential candidate for near-term investment [12]
Best Momentum Stock to Buy for August 21st
ZACKS· 2025-08-21 15:01
Group 1: OptimizeRx - OptimizeRx provides consumer and physician platforms to assist patients in affording and complying with their medications and healthcare products [1] - The company has a Zacks Rank of 1 (Strong Buy) and the Zacks Consensus Estimate for its current year earnings increased by 26.4% over the last 60 days [1] - OptimizeRx's shares gained 33.4% over the last three months, outperforming the S&P 500's gain of 9.5% [2] - The company possesses a Momentum Score of A [2] Group 2: Kanzhun - Kanzhun operates an online recruitment platform primarily in China [2] - The company also has a Zacks Rank of 1 and the Zacks Consensus Estimate for its current year earnings increased by 1.9% over the last 60 days [2] - Kanzhun's shares gained 23.3% over the last three months, again outperforming the S&P 500's gain of 9.5% [3] - The company possesses a Momentum Score of A [3] Group 3: Arista Networks - Arista Networks provides cloud networking solutions for data centers and cloud computing environments [3] - The company holds a Zacks Rank of 1 and the Zacks Consensus Estimate for its current year earnings increased by 9.8% over the last 60 days [3] - Arista Networks' shares gained 42.2% over the last three months, significantly outperforming the S&P 500's gain of 9.5% [4] - The company possesses a Momentum Score of A [4]
Why Western Digital (WDC) is a Top Value Stock for the Long-Term
ZACKS· 2025-08-21 14:40
Group 1: Zacks Premium Overview - Zacks Premium offers various tools for investors to enhance their stock market strategies, including daily updates on Zacks Rank and Industry Rank, access to the Zacks 1 Rank List, Equity Research reports, and Premium stock screens [1][2] - The service includes Zacks Style Scores, which are designed to help investors identify stocks with the best potential to outperform the market in the short term [2] Group 2: Zacks Style Scores - Zacks Style Scores categorize stocks into ratings of A, B, C, D, or F based on value, growth, and momentum characteristics, with higher scores indicating a better chance of outperforming the market [3] - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Cash Flow [3] - The Growth Score emphasizes a company's financial health and future growth potential by analyzing projected and historical earnings, sales, and cash flow [4] - The Momentum Score helps investors capitalize on price trends by evaluating recent price changes and earnings estimate revisions [5] - The VGM Score combines all three Style Scores to provide a comprehensive assessment of stocks based on value, growth, and momentum [6] Group 3: Zacks Rank and Stock Selection - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investors in building successful portfolios, with 1 (Strong Buy) stocks historically achieving an average annual return of +23.75% since 1988 [7][9] - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, while also considering the direction of earnings estimate revisions [9][10] Group 4: Company Spotlight - Western Digital - Western Digital Corporation is a leading developer and manufacturer of data storage devices, offering a range of HDD and Flash storage solutions for various consumer electronics [11] - The company holds a 1 (Strong Buy) rating on the Zacks Rank and has a VGM Score of B, with a Value Style Score of B due to a forward P/E ratio of 11.64, indicating attractive valuation metrics [12] - Recent upward revisions in earnings estimates by analysts have increased the Zacks Consensus Estimate for fiscal 2026 to $6.50 per share, with an average earnings surprise of +6.8% [12][13]
Mercury General (MCY) Is Up 4.77% in One Week: What You Should Know
ZACKS· 2025-08-20 17:01
Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell even higher, with the expectation that established trends will continue [1] Company Overview: Mercury General (MCY) - Mercury General currently holds a Momentum Style Score of B, indicating a favorable momentum outlook [3] - The company has a Zacks Rank of 1 (Strong Buy), which historically outperforms the market when combined with a Style Score of A or B [4] Performance Metrics - Over the past week, MCY shares increased by 4.77%, outperforming the Zacks Insurance - Property and Casualty industry, which rose by 1.06% [6] - In the last month, MCY's price change was 6.56%, compared to the industry's 1.27% [6] - Over the past quarter, MCY shares rose by 19.08%, and over the last year, they increased by 22.39%, while the S&P 500 only moved 7.87% and 15.7%, respectively [7] Trading Volume - MCY's average 20-day trading volume is 292,714 shares, which serves as a baseline for price-to-volume analysis [8] Earnings Outlook - In the last two months, one earnings estimate for MCY increased, while none decreased, raising the consensus estimate from -$0.50 to $4.50 [10] - For the next fiscal year, one estimate has moved upwards with no downward revisions during the same period [10] Conclusion - Considering the performance metrics and earnings outlook, MCY is positioned as a 1 (Strong Buy) stock with a Momentum Score of B, making it a potential candidate for near-term investment [12]