Momentum Investing

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5 Variables Every Investor Must Watch Before The Fed Speaks
Seeking Alpha· 2025-09-12 18:11
Market Dynamics - The current market phase is characterized by momentum-driven trading, where investors are not primarily focused on discovering undervalued stocks but are influenced by market trends [1]. Analyst Profile - The analyst has over a decade of experience in global markets, specializing in macroeconomic analysis, portfolio management, and equity research [1]. - The analyst leads multi-asset strategies and manages equity portfolios, combining top-down macro insights with bottom-up stock selection [1]. - The research approach emphasizes economic cycles, monetary policy, and systemic risks, with a focus on growth stocks while maintaining a broad perspective across all equity styles [1]. Research Methodology - The research is grounded in fundamentals and utilizes tools such as Bloomberg Terminal, advanced Excel models, and quantitative methods for valuation, risk monitoring, and sector analysis [1]. - The analyst aims to share high-conviction ideas, focusing on undercovered names, contrarian opportunities, and the macro forces influencing capital flows [1].
Fast-paced Momentum Stock ScanSource (SCSC) Is Still Trading at a Bargain
ZACKS· 2025-09-12 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 downside if growth fails to justify high valuations [2] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify promising candidates [3] Group 2: Company Spotlight - ScanSource (SCSC) - ScanSource (SCSC) has shown a four-week price change of 3.4%, indicating growing investor interest and positioning it well within the momentum investing framework [4] - Over the past 12 weeks, SCSC's stock has gained 11.5%, with a beta of 1.43, suggesting it moves 43% more than the market in either direction [5] - SCSC has a Momentum Score of B, indicating a favorable time to invest based on momentum [6] Group 3: Earnings and Valuation - SCSC has received a Zacks Rank 2 (Buy) due to upward trends in earnings estimate revisions, which attract more investor interest and support price increases [7] - The stock is currently trading at a Price-to-Sales ratio of 0.33, suggesting it is undervalued at 33 cents for each dollar of sales, providing significant room for growth [7] Group 4: Additional Opportunities - Besides SCSC, 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, aiding in the identification of potential winning stocks [9]
Primoris Services (PRIM) Shows Fast-paced Momentum But Is Still a Bargain Stock
ZACKS· 2025-09-11 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 - Investors following momentum investing often avoid undervalued stocks, believing that quicker profits can be made from trending stocks [1] - Identifying the right entry point for fast-moving stocks can be challenging, as these stocks may lose momentum if future growth does not justify their high valuations [1] Group 2: Investment Opportunities - Primoris Services (PRIM) has shown a price increase of 3.7% over the past four weeks, indicating growing investor interest [3] - Over the past 12 weeks, PRIM's stock has gained 57.6%, demonstrating its ability to deliver positive returns over a longer timeframe [4] - PRIM has a beta of 1.42, suggesting it moves 42% more than the market in either direction, indicating fast-paced momentum [4] Group 3: Valuation and Earnings - PRIM has a Momentum Score of A, suggesting it is an opportune time to invest in the stock [5] - The stock has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which typically attract more investors [6] - PRIM is trading at a Price-to-Sales ratio of 0.92, indicating it is relatively cheap at 92 cents for each dollar of sales [6] Group 4: Additional Investment Options - Besides PRIM, 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 help identify potential winning stocks [8]
Par Petroleum (PARR) Is Attractively Priced Despite Fast-paced Momentum
ZACKS· 2025-09-11 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 - Investors following momentum investing often avoid undervalued stocks, believing that quicker profits can be made from trending stocks [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] 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 is useful for identifying strong momentum stocks, while the 'Fast-Paced Momentum at a Bargain' screen helps find attractively priced fast-moving stocks [2] Group 3: Par Petroleum (PARR) Analysis - Par Petroleum (PARR) has shown a price increase of 15.4% over the past four weeks, indicating growing investor interest [3] - PARR has gained 21.5% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [4] - The stock has a beta of 1.82, suggesting it moves 82% more than the market in either direction, indicating fast-paced momentum [4] Group 4: Valuation and Earnings Estimates - PARR has a Momentum Score of A, suggesting it is an opportune time to invest in the stock [5] - The stock has a Zacks Rank 1 (Strong Buy) due to upward revisions in earnings estimates, which typically attract more investors [6] - PARR is trading at a Price-to-Sales ratio of 0.22, indicating it is relatively cheap, as investors pay only 22 cents for each dollar of sales [6] Group 5: Additional Investment Opportunities - Besides PARR, 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 help identify potential winning stocks [8]
Why Fast-paced Mover Sally Beauty (SBH) Is a Great Choice for Value Investors
ZACKS· 2025-09-10 13:51
Momentum investors typically don't time the market or "buy low and sell high." In other words, they avoid betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time.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 potential fails to justify their swelled-up valuation. In that phase ...
Rockwell Medical (RMTI) Is Attractively Priced Despite Fast-paced Momentum
ZACKS· 2025-09-10 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 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 potential candidates [3] Group 2: Rockwell Medical (RMTI) Analysis - Rockwell Medical (RMTI) has shown significant recent price momentum with a four-week price change of 85.3%, indicating growing investor interest [4] - RMTI has gained 97% over the past 12 weeks, with a beta of 1.83, suggesting it moves 83% higher than the market in either direction [5] - RMTI holds a Momentum Score of A, indicating a favorable time to invest based on momentum [6] Group 3: Earnings Estimates and Valuation - RMTI has a Zacks Rank 2 (Buy) due to upward trends in earnings estimate revisions, which attract more investor interest [7] - The stock is trading at a Price-to-Sales ratio of 0.70, suggesting it is undervalued as investors pay only 70 cents for each dollar of sales [7] Group 4: Additional Investment Opportunities - Besides RMTI, 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]
Best Momentum Stock to Buy for September 5th
ZACKS· 2025-09-05 15:01
Group 1: Trip.com Group Limited (TCOM) - Trip.com is a one-stop travel service company with a Zacks Rank 1 (Strong Buy) [1] - The Zacks Consensus Estimate for its current year earnings increased by 2.5% over the last 60 days [1] - Trip.com's shares gained 17.8% over the last three months, outperforming the S&P 500's gain of 9.4% [1] - The company has a Momentum Score of A [1] Group 2: Imperial Oil (IMO) - Imperial Oil is one of the largest integrated oil companies in Canada, engaged in oil and gas production, refining, and marketing [2] - The Zacks Consensus Estimate for its current year earnings increased by 2.7% over the last 60 days [2] - Imperial Oil's shares gained 20.6% over the last three months, also outperforming the S&P 500's gain of 9.4% [2] - The company possesses a Momentum Score of A [2] Group 3: Equity Bancshares (EQBK) - Equity Bancshares is a bank holding company providing financial services primarily to businesses and individuals [3] - The Zacks Consensus Estimate for its current year earnings increased by 5.8% over the last 60 days [3] - Equity Bancshares' shares gained 10.1% over the last three months, slightly outperforming the S&P 500's gain of 9.5% [3] - The company has a Momentum Score of A [3]
Best Momentum Stock to Buy for September 4th
ZACKS· 2025-09-04 15:01
Group 1: Stride (LRN) - Stride is a premier provider of K-12 education, including career learning services, and has a Zacks Rank 1 (Strong Buy) [1] - The Zacks Consensus Estimate for Stride's current year earnings increased by 10.6% over the last 60 days [1] - Stride's shares gained 10.4% over the last three months, outperforming the S&P 500's gain of 8.5% [2] - The company possesses a Momentum Score of A [2] Group 2: Magic Software Enterprises (MGIC) - Magic Software Enterprises develops and supports software development and deployment technology, and has a Zacks Rank 1 [3] - The Zacks Consensus Estimate for Magic Software's current year earnings increased by 10.1% over the last 60 days [3] - Magic Software's shares gained 20.5% over the last three months, significantly outperforming the S&P 500's gain of 8.5% [4] - The company possesses a Momentum Score of A [4] Group 3: Advanced Energy Industries (AEIS) - Advanced Energy Industries is a leading supplier of power subsystems and process-control technologies to the semiconductor industry, and has a Zacks Rank 1 [4] - The Zacks Consensus Estimate for Advanced Energy's current year earnings increased by 10.1% over the last 60 days [4] - Advanced Energy's shares gained 21.5% over the last three months, also outperforming the S&P 500's gain of 8.5% [5] - The company possesses a Momentum Score of A [5]
Here's Why Anywhere Real Estate (HOUS) is a Great Momentum Stock to Buy
ZACKS· 2025-09-03 17:01
Group 1: Momentum Investing Overview - Momentum investing is based on following a stock's recent price trends, aiming to buy high and sell higher [1] - The Zacks Momentum Style Score helps identify effective metrics for assessing stock momentum [2] Group 2: Company Analysis - Anywhere Real Estate (HOUS) - Anywhere Real Estate currently has a Momentum Style Score of B and a Zacks Rank of 2 (Buy) [3][4] - HOUS shares have increased by 4.09% over the past week, outperforming the flat performance of the Zacks Real Estate - Operations industry [6] - Over the past quarter, HOUS shares have risen by 51.41%, compared to the S&P 500's increase of 8.34% [7] - The average 20-day trading volume for HOUS is 1,262,582 shares, indicating bullish sentiment [8] Group 3: Earnings Outlook - In the past two months, one earnings estimate for HOUS has increased, raising the consensus estimate from -$0.33 to -$0.26 [10] - For the next fiscal year, one estimate has moved upwards with no downward revisions [10] Group 4: Conclusion - Given the positive momentum indicators and earnings outlook, HOUS is positioned as a strong buy candidate [12]
Looking for a Fast-paced Momentum Stock at a Bargain? Consider Anywhere Real Estate (HOUS)
ZACKS· 2025-09-03 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 ...