Momentum Investing

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Here's Why Vertiv Holdings Co. (VRT) is a Strong Momentum Stock
ZACKS· 2025-08-08 14:51
Core Insights - Zacks Premium offers tools to enhance investor confidence and market engagement through daily updates and research resources [1][2] Zacks Style Scores - Zacks Style Scores provide a rating system for stocks based on value, growth, and momentum, aiding investors in selecting securities likely to outperform the market [2][3] - Stocks are rated from A to F, with A indicating the highest potential for outperformance [3] Value Score - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales to find attractive investment opportunities [3] Growth Score - The Growth Score emphasizes a company's financial health and future growth potential, analyzing projected and historical earnings, sales, and cash flow [4] Momentum Score - The Momentum Score is designed for traders looking to capitalize on price trends, utilizing recent price changes and earnings estimate shifts to identify high-momentum stocks [5] VGM Score - The VGM Score combines Value, Growth, and Momentum Scores, serving as a comprehensive indicator for stock selection alongside the Zacks Rank [6] Zacks Rank - The Zacks Rank is a proprietary model that uses 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] - There are over 800 stocks rated 1 or 2, which can be overwhelming for investors [8] Stock Example: Vertiv Holdings Co. (VRT) - Vertiv is a key player in critical digital infrastructure for various essential industries, including cloud computing and healthcare [11] - Currently rated 3 (Hold) with a VGM Score of B, VRT has a Momentum Score of A and has seen a 15.5% increase in shares over the past month [11][12] - Analysts have revised VRT's earnings estimate upwards, with the Zacks Consensus Estimate rising by $0.21 to $3.76 per share, and an average earnings surprise of +10.7% [12]
Despite Fast-paced Momentum, Kennametal (KMT) Is Still a Bargain Stock
ZACKS· 2025-08-06 13:51
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 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: Kennametal (KMT) Stock Analysis - Kennametal (KMT) has shown a price increase of 5.3% over the past four weeks, indicating growing investor interest [4] - KMT has gained 13.4% over the past 12 weeks, with a beta of 1.44, suggesting it moves 44% more than the market [5] - KMT holds a Momentum Score of B, indicating a favorable time to invest based on momentum [6] Group 3: Earnings Estimates and Valuation - KMT 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 0.96, indicating it is reasonably valued at 96 cents for each dollar of sales [7] Group 4: Additional Investment Opportunities - Besides KMT, 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 to help identify potential winning stocks based on various investing styles [9]
Utilities ETF (IDU) Hits New 52-Week High
ZACKS· 2025-08-05 15:45
For investors seeking momentum, iShares U.S. Utilities ETF (IDU) is probably on the radar. The fund just hit a 52-week high and is up 21% from its 52-week low price of $91.91/share. But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed:IDU in FocusiShares U.S. Utilities ETF offers exposure to U.S. companies that supply electricity, gas and water. It has key holdings in the electric utilities and multi-ut ...
Best Momentum Stock to Buy for August 5th
ZACKS· 2025-08-05 15:01
Group 1: F5 (FFIV) - F5 provides products and services to manage Internet traffic worldwide and has a Zacks Rank 1 (Strong Buy) [1] - The Zacks Consensus Estimate for F5's current year earnings increased by 4.9% over the last 60 days [1] - F5's shares gained 20.1% over the last three months compared to the S&P 500's gain of 12%, and the company has a Momentum Score of A [1] Group 2: Indivior (INDV) - Indivior is a specialty pharmaceutical company focused on medications for alcohol addiction, opioid overdose, and related conditions, holding a Zacks Rank 1 [2] - The Zacks Consensus Estimate for Indivior's current year earnings increased by 26.1% over the last 60 days [2] - Indivior's shares gained 78.4% over the last three months compared to the S&P 500's gain of 12%, with a Momentum Score of A [3] Group 3: nVent Electric (NVT) - nVent Electric provides electrical connection and protection solutions and has a Zacks Rank 1 [4] - The Zacks Consensus Estimate for nVent Electric's current year earnings increased by 6.5% over the last 60 days [4] - nVent Electric's shares gained 48.6% over the last three months compared to the S&P 500's gain of 12%, and the company has a Momentum Score of A [4]
Stock Screening Made Simple: A Closer Look
ZACKS· 2025-08-04 22:56
Group 1 - Stock screening is a common tool used by investors to navigate the overwhelming number of options available, similar to creating a grocery list [1][9] - The screening process can be tailored to individual preferences, as there is no one-size-fits-all approach [2] - Parameters in stock screening can be fine-tuned for various investing styles, including momentum, value, growth, and income [3] Group 2 - Value investors can utilize parameters such as 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 focuses on stocks that have experienced buying pressure, with parameters like percentage price change over the last month and average volume [5] - Growth investing targets companies expected to grow sales and earnings at above-average levels, using parameters like last year's earnings growth rates and expected growth rates for the current year [6][7] Group 3 - Income-focused investing emphasizes dividend-paying stocks, which are often more stable and represent mature companies sharing profits with shareholders [8][10] - Parameters for searching dividend-paying stocks include current dividend yield and the 5-year historical dividend growth rate [10] - Zacks offers many pre-built custom screens for various investment strategies, making the screening process smoother for investors [9][11]
Best Momentum Stock to Buy for August 4th
ZACKS· 2025-08-04 15:00
Core Insights - Three stocks with strong momentum and buy rankings are highlighted for investors: Zurn Elkay Water Solutions Corp, LendingClub, and Houlihan Lokey [1][2][3]. Company Summaries Zurn Elkay Water Solutions Corp (ZWS) - The company supplies advanced water system solutions and has a Zacks Rank of 1 (Strong Buy) [1]. - The Zacks Consensus Estimate for its current year earnings increased by 9.9% over the last 60 days [1]. - Shares gained 29.7% over the last three months, outperforming the S&P 500's gain of 10.3% [2]. - The company possesses a Momentum Score of A [2]. LendingClub (LC) - LendingClub operates an online marketplace for loan approval, pricing, servicing, and support operations, connecting borrowers and investors [2]. - It has a Zacks Rank of 1 and the Zacks Consensus Estimate for its current year earnings increased by 58.5% over the last 60 days [2]. - Shares gained 51.3% over the last three months, significantly outperforming the S&P 500's gain of 10.3% [3]. - The company also possesses a Momentum Score of A [3]. Houlihan Lokey (HLI) - Houlihan Lokey is a national banking association chartered under U.S. laws and has a Zacks Rank of 1 [3]. - The Zacks Consensus Estimate for its current year earnings increased by 6.5% over the last 60 days [3]. - Shares gained 15.9% over the last three months, again outperforming the S&P 500's gain of 10.3% [4]. - The company holds a Momentum Score of A [4].
Fast-paced Momentum Stock Betterware de Mexico SAPI de C (BWMX) Is Still Trading at a Bargain
ZACKS· 2025-08-04 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 Strategy - Momentum investors often face challenges in determining the right entry point for fast-moving stocks, which can lead to limited upside or potential losses [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 promising stocks [3] Group 2: Company Spotlight - Betterware de Mexico SAPI de C (BWMX) - BWMX has shown significant price momentum, with a 51.3% increase over the past four weeks, indicating strong investor interest [4] - The stock has gained 36.6% over the past 12 weeks, with a beta of 1.24, suggesting it moves 24% more than the market [5] - BWMX has a Momentum Score of B, indicating a favorable time to invest based on its momentum [6] Group 3: Earnings and Valuation - BWMX has received a Zacks Rank 1 (Strong Buy) due to upward revisions in earnings estimates, which typically attract more investors [7] - The stock is trading at a Price-to-Sales ratio of 0.68, suggesting it is undervalued at 68 cents for each dollar of sales [7] Group 4: Additional Opportunities - Besides BWMX, 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]
Fast-paced Momentum Stock Anywhere Real Estate (HOUS) Is Still Trading at a Bargain
ZACKS· 2025-08-04 13:51
Group 1 - Momentum investing contrasts with the traditional strategy of "buy low and sell high," focusing instead on "buying high and selling higher" [1] - Identifying the right entry point for fast-moving stocks can be challenging, as they may lose momentum if future growth does not justify their high valuations [1] - Investing in bargain stocks that have recently shown price momentum may be a safer strategy [2] Group 2 - Anywhere Real Estate (HOUS) has shown significant price momentum, with a four-week price change of 18.2% [3] - HOUS has gained 26.1% over the past 12 weeks, indicating its potential as a long-term momentum player [4] - The stock has a beta of 1.7, suggesting it moves 70% higher than the market in either direction [4] Group 3 - HOUS has a Momentum Score of B, indicating a favorable time to invest [5] - The stock has a Zacks Rank 2 (Buy) due to upward trends in earnings estimate revisions, which attract more investors [6] - HOUS is trading at a low Price-to-Sales ratio of 0.09, meaning investors pay only 9 cents for each dollar of sales, indicating a reasonable valuation [6] Group 4 - HOUS appears to have significant growth potential and is part of a broader list of stocks that meet the 'Fast-Paced Momentum at a Bargain' criteria [7] - There are over 45 Zacks Premium Screens available to help identify winning stock picks based on various investing styles [8]
MTUM: Capturing U.S. Momentum
Seeking Alpha· 2025-08-01 12:47
Core Insights - The article focuses on the iShares MSCI USA Momentum Factor ETF (BATS: MTUM), which is managed by BlackRock and aims to replicate the performance of the MSCI [1] Group 1 - The iShares MSCI USA Momentum Factor ETF is an investment vehicle that seeks to track the performance of the MSCI [1]
VFMO: Momentum Investing Is Flourishing, But Consider SPMO Or MTUM
Seeking Alpha· 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]