Momentum Investing
Search documents
ConnectOne Bancorp (CNOB) is a Great Momentum Stock: Should You Buy?
ZACKS· 2025-07-04 17:06
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: ConnectOne Bancorp (CNOB) - ConnectOne Bancorp currently holds a Momentum Style Score of B and a Zacks Rank of 2 (Buy), indicating strong potential for outperformance [2][3] - The stock has shown significant price appreciation, with a 6.41% increase over the past week, outperforming the Zacks Banks - Northeast industry, which rose 4.31% [5] - Over the last month, CNOB's shares increased by 10.86%, compared to the industry's 9.21% [5] - In the longer term, CNOB shares have risen 18.14% over the past quarter and 34.53% over the past year, while the S&P 500 increased by 16.66% and 14.76%, respectively [6] Trading Volume - The average 20-day trading volume for CNOB is 298,147 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - Recent earnings estimate revisions for CNOB have been positive, with two estimates moving higher and none lower over the past two months, raising the consensus estimate from $2.30 to $2.50 [9] - For the next fiscal year, one estimate has increased, with no downward revisions noted [9] Conclusion - Given the positive momentum indicators and earnings outlook, CNOB is positioned as a strong buy candidate for investors seeking short-term gains [11]
Why Fast-paced Mover GoPro (GPRO) Is a Great Choice for Value Investors
ZACKS· 2025-07-03 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: GoPro (GPRO) Analysis - GoPro (GPRO) has shown a price increase of 7.9% over the past four weeks, indicating growing investor interest [4] - Over the past 12 weeks, GPRO's stock has gained 51.1%, demonstrating its ability to deliver positive returns over a longer timeframe [5] - GPRO has a beta of 1.38, suggesting it moves 38% more than the market, indicating fast-paced momentum [5] - GPRO holds a Momentum Score of A, 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 investors [7] - GPRO is trading at a Price-to-Sales ratio of 0.15, indicating it is undervalued at 15 cents for each dollar of sales, providing room for growth [7] Group 3: Additional Investment Opportunities - Besides GPRO, 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]
Rimini Street (RMNI) Shows Fast-paced Momentum But Is Still a Bargain Stock
ZACKS· 2025-07-03 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] - A safer investment approach involves targeting bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score [2] Group 2 - Rimini Street (RMNI) is highlighted as a strong candidate for investment, showing a four-week price change of 19.2% [3] - RMNI has gained 10.3% over the past 12 weeks, indicating its ability to deliver positive returns over a longer timeframe [4] - The stock has a beta of 1.31, suggesting it moves 31% more than the market in either direction, reflecting fast-paced momentum [4] Group 3 - RMNI has a Momentum Score of B, indicating a favorable time to invest based on its momentum characteristics [5] - The stock has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which typically attract more investor interest [6] - RMNI is trading at a Price-to-Sales ratio of 0.83, suggesting it is undervalued at 83 cents for each dollar of sales [6] Group 4 - RMNI appears to have significant potential for growth at a fast pace, alongside other stocks that meet the 'Fast-Paced Momentum at a Bargain' criteria [7] - There are over 45 Zacks Premium Screens available to assist in identifying winning stock picks based on various investing styles [8]
5 Momentum Picks for Third-Quarter 2025 After a Stellar Second Quarter
ZACKS· 2025-07-03 12:56
Market Overview - Wall Street reached record-high levels, with the Dow, S&P 500, and Nasdaq Composite increasing by 5%, 10.6%, and 17.8% respectively in Q2 2025, marking it as the best quarter for U.S. stocks in the past year [1] - The small-cap benchmark, Russell 2000, also saw an 8.3% gain [1] - Positive market sentiment was driven by expectations of key trade deals and reduced fears of a near-term recession in the U.S. economy [2] Investment Opportunities - Recommended stocks with favorable Zacks Rank and momentum for Q3 include Jabil Inc. (JBL), Newmont Corp. (NEM), HEICO Corp. (HEI), Rockwell Automation Inc. (ROK), and The Estée Lauder Companies Inc. (EL), all holding a Zacks Rank 1 (Strong Buy) [3] Jabil Inc. (JBL) - Jabil is experiencing strong momentum in capital equipment, AI-powered data centers, cloud, and digital commerce sectors, with a focus on product diversification [6] - The company has a high free cash flow, indicating efficient financial management and operational efficiency [7] - Expected revenue and earnings growth rates for the next year are 5.9% and 18.5% respectively, with a 9% improvement in the Zacks Consensus Estimate for next-year earnings over the last 30 days [8] Newmont Corp. (NEM) - Newmont is progressing with growth projects, including the Tanami expansion and the Ahafo North project, with a commitment of $950 million to $1,050 million in development capital [10][11] - Expected revenue and earnings growth rates for the current year are 2% and 24.1% respectively, with a 3.3% improvement in the Zacks Consensus Estimate for current-year earnings over the last 30 days [11] HEICO Corp. (HEI) - HEICO is benefiting from increased orders for aftermarket replacement parts and repair services due to rising air travel and solid U.S. defense funding [12][13] - Expected revenue and earnings growth rates for the current year are 13.2% and 23.4% respectively, with a 1.1% improvement in the Zacks Consensus Estimate for current-year earnings over the last 30 days [14] Rockwell Automation Inc. (ROK) - Rockwell Automation is expanding its portfolio of hardware and software products, with investments in cloud technology supporting future growth [15] - Expected revenue and earnings growth rates for the next year are 6.7% and 16.1% respectively, with a 0.3% improvement in the Zacks Consensus Estimate for next-year earnings over the last seven days [17] The Estée Lauder Companies Inc. (EL) - The Estée Lauder Companies is focused on profitability through its Profit Recovery and Growth Plan, emphasizing innovation and digital expansion [18] - Expected revenue and earnings growth rates for the current year are 1.2% and 45.4% respectively, with a 0.5% improvement in the Zacks Consensus Estimate for current-year earnings over the last 30 days [20]
Annaly Capital Management (NLY) is a Top-Ranked Value Stock: Should You Buy?
ZACKS· 2025-07-02 14:46
Core Insights - Zacks Premium provides various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores are designed to complement the Zacks Rank, helping investors identify stocks with the potential to outperform the market [3][4] Zacks Style Scores Overview - The Zacks Style Scores categorize stocks into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [4][5][6][7] - Value Score emphasizes finding undervalued stocks using financial ratios [4] - Growth Score assesses a company's financial health and future growth potential [5] - Momentum Score identifies trends in stock prices and earnings estimates [6] - VGM Score combines all three styles to provide a comprehensive evaluation of stocks [7] Zacks Rank and Performance - The Zacks Rank utilizes earnings estimate revisions to guide investors in stock selection, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [8][9] - There are over 800 stocks rated 1 or 2, which can be overwhelming for investors [10] Stock Example: Annaly Capital Management (NLY) - Annaly Capital Management is a mortgage real estate investment trust (mREIT) with a diverse portfolio including mortgage-related securities [13] - NLY holds a 3 (Hold) rating on the Zacks Rank and has a VGM Score of B, along with a Value Style Score of B, indicating attractive valuation metrics [14] - The company has seen an upward revision in earnings estimates, with a Zacks Consensus Estimate of $2.87 per share for fiscal 2025 [14] - Given its solid Zacks Rank and favorable Style Scores, NLY is recommended for investors' consideration [15]
Jones Lang LaSalle (JLL) Shows Fast-paced Momentum But Is Still a Bargain Stock
ZACKS· 2025-07-02 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] - Investing in bargain stocks that exhibit recent price momentum can be a safer strategy, utilizing tools like the Zacks Momentum Style Score to identify potential opportunities [3] Group 2: Jones Lang LaSalle (JLL) Analysis - Jones Lang LaSalle (JLL) has shown significant price momentum, with a four-week price change of 14.2% and a 12-week gain of 23.5% [4][5] - JLL has a beta of 1.34, indicating it moves 34% more than the market, suggesting strong momentum [5] - The stock has a Momentum Score of B, indicating a favorable time to invest [6] - JLL has received 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 0.51, suggesting it is undervalued at 51 cents for each dollar of sales [7] Group 3: Additional Investment Opportunities - Besides JLL, 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 various investing styles, aimed at outperforming the market [9]
Fast-paced Momentum Stock Primoris Services (PRIM) Is Still Trading at a Bargain
ZACKS· 2025-07-02 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, as stocks may lose momentum when their valuations exceed future growth potential [2] - Investing in bargain stocks that exhibit recent price momentum can be a safer strategy, utilizing tools like the Zacks Momentum Style Score to identify potential opportunities [3] Group 2: Primoris Services (PRIM) Analysis - Primoris Services (PRIM) has shown a four-week price change of 8.3%, indicating growing investor interest [4] - Over the past 12 weeks, PRIM's stock has gained 48.1%, with a beta of 1.37, suggesting it moves 37% more than the market [5] - PRIM has a Momentum Score of A, indicating a favorable time to invest based on momentum [6] - The stock has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which attract more investors [7] - PRIM is trading at a Price-to-Sales ratio of 0.65, suggesting it is undervalued at 65 cents for each dollar of sales [7] Group 3: Additional Investment Opportunities - Besides PRIM, 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 to help identify potential winning stocks based on various investing styles [9]
Why Fast-paced Mover Jabil (JBL) Is a Great Choice for Value Investors
ZACKS· 2025-07-02 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 American Electric Power (AEP) is a Top Momentum Stock for the Long-Term
ZACKS· 2025-07-01 14:56
Company Overview - American Electric Power Company, Inc. is a public utility holding company that generates, transmits, and distributes electricity and natural gas, serving nearly 5.6 million customers across 11 states [12]. - The company has a generating capacity of approximately 23,200 megawatts (MW), with nearly 46% of its capacity being coal-fired as of December 31, 2024 [12]. - The energy generation mix includes approximately 40% from coal and lignite, 22% from nuclear energy, 22% from natural gas and oil, and 16% from renewable sources [12]. Investment Ratings - American Electric Power is currently rated 3 (Hold) on the Zacks Rank, with a VGM Score of B [12]. - The company has a Momentum Style Score of B, indicating positive momentum in its stock performance, with shares up 0.6% over the past four weeks [13]. Earnings Estimates - One analyst has revised their earnings estimate higher for fiscal 2025, with the Zacks Consensus Estimate increasing by $0.01 to $5.86 per share [13]. - The company boasts an average earnings surprise of 4.1%, suggesting a history of exceeding earnings expectations [13].
Despite Fast-paced Momentum, Beauty Health (SKIN) Is Still a Bargain Stock
ZACKS· 2025-07-01 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 downside risks [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: The Beauty Health Company (SKIN) - The Beauty Health Company (SKIN) has shown significant recent price momentum, with a four-week price change of 19.4% [4] - Over the past 12 weeks, SKIN's stock has gained 82.8%, indicating strong long-term momentum [5] - SKIN has a Momentum Score of A, suggesting it is an opportune time to invest in the stock [6] Group 3: Earnings Estimates and Valuation - SKIN 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 0.75, indicating it is attractively priced relative to its sales [7] Group 4: Additional Investment Opportunities - Besides SKIN, 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]