Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following 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 in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Whil ...

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following 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 in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Even ...

Core Viewpoint - Goodyear's shares have declined approximately 1.7% since the last earnings report, underperforming the S&P 500, raising questions about the potential for a breakout or continued negative trend leading up to the next earnings release [1] Estimates Movement - Estimates for Goodyear have trended downward over the past month, with the consensus estimate shifting down by 22.54% [2] VGM Scores - Goodyear currently holds a poor Growth Score of F and a similar score for momentum, but it has an A grade for value, placing it in the top quintile for this investment strategy. The overall aggregate VGM Score is C, which is relevant for investors not focused on a single strategy [3] Outlook - The downward trend in estimates indicates a negative shift, with Goodyear holding a Zacks Rank of 3 (Hold). An in-line return is expected from the stock in the upcoming months [4]

Core Viewpoint - Watts Water (WTS) shares have increased by approximately 2.5% since the last earnings report, which is underperforming compared to the S&P 500 [1] Group 1: Earnings Report and Market Reaction - The recent earnings report is crucial for understanding the catalysts affecting the stock's performance [1] - Investors and analysts are closely monitoring the stock as it approaches its next earnings release [1] Group 2: Estimates and Scores - Fresh estimates for Watts Water have trended upward over the past month, indicating positive sentiment [2] - The company has a Growth Score of B, a Momentum Score of C, and a Value Score of D, placing it in the bottom 40% for the value investment strategy [3] - The aggregate VGM Score for Watts Water is C, which is relevant for investors not focused on a single strategy [3] Group 3: Outlook - The upward trend in estimates suggests a promising outlook for the stock [4] - Watts Water holds a Zacks Rank of 3 (Hold), indicating expectations for an in-line return in the coming months [4]

Group 1: Market Overview - High volatility in markets throughout 2025 has created opportunities for momentum investors to capture gains when target stocks rise [1] - Timing momentum plays can be challenging, but early identification of targets in a sustained rally can provide an advantage [1] Group 2: EyePoint Pharmaceuticals (EYPT) - EyePoint Pharmaceuticals, a clinical-stage biopharma firm, has seen its stock price forecasted to reach $25.38, indicating a potential upside of 188.39% from the current price of $8.80 [2] - The company reported first-quarter revenue of nearly $25 million, significantly exceeding analyst expectations of just under $9 million [3] - EyePoint's lead drug candidate, DURAVYU, is in a critical Phase 3 clinical trial, with top-line data expected in 2026 [4] - The company ended the first quarter with over $318 million in cash and investments, sufficient to sustain operations through 2027 [4] - EYPT shares have increased by more than 19% in the last month, with analysts suggesting that growth is just beginning [5] Group 3: Nova Ltd. (NVMI) - Nova Ltd., which designs process control systems for semiconductor manufacturing, has a stock price forecast of $277, representing a 26.02% upside from the current price of $219.81 [6] - The company reported quarterly revenue growth of over 50% year-over-year, with earnings per share of $2.18 beating analyst estimates by 10 cents [7] - Analysts project Nova's earnings growth could exceed 7% in the future, supported by a year-over-year cash flow growth of about 32% [8] - NVMI shares have risen by more than 10% in the last month, with a consensus price target suggesting over 27% upside potential [9] Group 4: Ouster Inc. (OUST) - Ouster Inc. specializes in LiDAR technology for 3D mapping and imaging, with a stock price forecast of $14.10, indicating a 2.45% upside from the current price of $13.76 [10] - The company reported first-quarter revenue of $33 million, a 26% year-over-year increase, and a GAAP gross margin improvement to 41% from 29% [11] - Ouster projects second-quarter revenue between $32 million and $35 million, indicating significant upside potential [11] - The company's stock has rallied over 71% in the last year, with analysts optimistic about further growth due to increasing demand for robotics and automation services [12]

Core Insights - Zacks Premium provides tools for investors to enhance their stock market strategies, including daily updates on Zacks Rank and Industry Rank, research reports, and stock screens [1][2] Zacks Style Scores - Zacks Style Scores rate stocks based on value, growth, and momentum, serving as complementary indicators to the Zacks Rank, helping investors identify securities 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/Cash Flow [3] Growth Score - The Growth Style Score assesses a company's financial health and future outlook by analyzing projected and historical earnings, sales, and cash flow [4] Momentum Score - The Momentum Style Score identifies optimal entry points for stocks based on price trends and earnings estimate changes [5] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for evaluating stocks based on value, growth, and momentum [6] Zacks Rank - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to guide investors in building successful portfolios [7] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +25.41%, significantly outperforming the S&P 500 [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 [10] - Stocks with a 3 (Hold) rank should also have Style Scores of A or B to ensure potential upside [10] Company Spotlight: Donaldson Company, Inc. - Donaldson Company, Inc. is a manufacturer of filtration systems and replacement parts, currently holding a Zacks Rank of 3 (Hold) with a VGM Score of B [12] - The company has a Momentum Style Score of A, with shares increasing by 3.3% over the past four weeks [12] - Recent analyst revisions have positively impacted earnings estimates for fiscal 2025, with the Zacks Consensus Estimate rising to $3.65 per share [13]

Group 1 - Momentum investing is characterized by the strategy of "buying high and selling higher," contrasting with the traditional "buy low and sell high" approach [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] - 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 such opportunities [2] Group 2 - Sleep Number (SNBR) has demonstrated significant price movement, with a 25.5% increase over the past four weeks, indicating growing investor interest [3] - Over a longer timeframe, SNBR has gained 54.2% in the past 12 weeks, showcasing its ability to deliver sustained positive returns [4] - SNBR has a Momentum Score of B, suggesting it is an opportune time to invest in the stock to capitalize on its momentum [5] Group 3 - SNBR has received a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which typically attract more investor interest and drive prices higher [6] - The stock is currently trading at a Price-to-Sales ratio of 0.14, indicating it is undervalued, as investors pay only 14 cents for each dollar of sales [6] - SNBR appears to have significant growth potential, supported by its fast-paced momentum characteristics [7] Group 4 - In addition to SNBR, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [7] - Zacks offers over 45 Premium Screens tailored to different investing styles, which can assist in identifying winning stock picks [8]

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 - TransAct Technologies Incorporated (TACT) is highlighted as a strong candidate for investment due to its recent price momentum, with a four-week price change of 0.5% [3] - TACT has gained 2.8% over the past 12 weeks, indicating its ability to deliver positive returns over a longer timeframe [4] - The stock has a Momentum Score of A, suggesting it is an opportune time to invest [5] Group 3 - TACT has received a Zacks Rank 1 (Strong Buy) due to upward revisions in earnings estimates, which attract more investor interest [6] - The stock is trading at a Price-to-Sales ratio of 0.82, indicating it is reasonably valued at 82 cents for each dollar of sales [6] - TACT is positioned for significant growth potential, supported by its fast-paced momentum characteristics [7]

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 if future growth does not justify high valuations [1] - Identifying the right entry point for fast-moving stocks is challenging, and traditional momentum parameters may not always be reliable [1] Group 2: Bargain Stocks and Screening - Investing in bargain stocks with recent price momentum may be safer, and the Zacks Momentum Style Score is useful for identifying such stocks [2] - The 'Fast-Paced Momentum at a Bargain' screen helps in spotting fast-moving stocks that are still attractively priced [2] Group 3: Mogo Inc (MOGO) Performance - Mogo Inc (MOGO) has shown a price increase of 22.1% over the past four weeks, indicating growing investor interest [3] - Over the past 12 weeks, MOGO's stock gained 45.3%, demonstrating its ability to deliver positive returns over a longer timeframe [4] - MOGO has a high beta of 3.65, suggesting it moves 265% higher than the market in either direction [4] Group 4: Valuation and Earnings Estimates - MOGO has a Momentum Score of A, indicating a favorable time to invest based on momentum [5] - The stock has a Zacks Rank 2 (Buy) due to upward trends in earnings estimate revisions, which attract more investors [6] - MOGO is trading at a Price-to-Sales ratio of 0.63, indicating it is relatively cheap at 63 cents for each dollar of sales [6] Group 5: Additional Investment Opportunities - MOGO has potential for further growth, and there are other stocks that meet the 'Fast-Paced Momentum at a Bargain' criteria [7] - Zacks offers over 45 Premium Screens to help investors find winning stock picks based on their investing style [8]

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 ...