Core Insights - The Fidelity Small-Mid Multifactor ETF (FSMD) targets US small- and mid-cap equities, specifically those with a free-float market cap of at least USD 75 million and a minimum six-month traded volume of USD 25 million, while excluding the largest 500 companies [1] Group 1: Portfolio Construction Methodology - The underlying index selects stocks based on a composite of four factors: Value, Quality, Momentum, and Low Volatility, with specific weightings for each factor [1] - Value metrics include free cash flow yield, EBITDA/EV, tangible book/price, and next-twelve-months earnings/price, each contributing 25% to the composite [1] - Quality metrics focus on free cash flow margin, return on invested capital (ROIC), and free cash flow stability, with each metric contributing 33% [1] - Momentum is assessed through a combination of 12-month minus 1-month return, volatility-adjusted analog, earnings surprise, and short-interest, with respective weightings of 35%, 35%, 15%, and 15% [1] - Low Volatility is evaluated using 5-year price standard deviation, beta, and EPS volatility, each contributing 33% [1] - The ETF targets approximately 600 constituents and employs a weighting strategy that combines market-cap weight with an equal "active" overweight per name to limit concentration [1] - The index is reconstituted and reweighted semiannually on the third Friday of February and August [1]

Core Insights - Three stocks with strong momentum and buy rankings are highlighted for investors: RF Industries, Morgan Stanley, and First Horizon Group 1: RF Industries (RFIL) - RF Industries is engaged in the design, manufacture, and distribution of coaxial connectors for radio communications and other applications [1] - The company has a Zacks Rank of 1 (Strong Buy) and a 22.9% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [1] - RF Industries' shares gained 14.5% over the last three months, outperforming the S&P 500's gain of 3% [2] - The company possesses a Momentum Score of A [2] Group 2: Morgan Stanley (MS) - Morgan Stanley is a leading financial services holding company serving a diverse clientele, including corporations and governments [2] - The company has a Zacks Rank of 1 and a 4.4% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [2] - Morgan Stanley's shares gained 17.4% over the last three months, also outperforming the S&P 500's gain of 3% [3] - The company possesses a Momentum Score of A [3] Group 3: First Horizon (FHN) - First Horizon offers a range of financial services, including regional banking, mortgage lending, and wealth management [4] - The company has a Zacks Rank of 1 and a 6.7% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [4] - First Horizon's shares gained 18.2% over the last three months, significantly outperforming the S&P 500's gain of 3% [5] - The company possesses a Momentum Score of A [5]

Core Insights - The Newfound/ReSolve Robust Equity Momentum Index employs a rules-based, weekly-rotated allocation strategy among global equity and U.S. Treasury ETFs [1] Portfolio Construction Methodology - The index universe includes liquid U.S.-listed funds that represent global equities, U.S. equities, developed ex-U.S. equities, emerging markets, short-term Treasuries, and intermediate Treasuries [1] - Four distinct momentum definitions are evaluated over multiple lookback horizons and sampling frequencies, resulting in tens of thousands of momentum observations aggregated into momentum scores [1] - A dual-momentum sleeve compares global equity momentum with short-term Treasury momentum; when equities lead, the allocation is fully directed to either U.S. or developed ex-U.S. equities, otherwise to short- or intermediate Treasuries [1] - A residual dual-momentum sleeve compares global equity momentum with intermediate Treasuries; when favorable, it selects among U.S., developed, and emerging equity ETFs, otherwise holding intermediate Treasuries [1] - Final index weights are structured as 75% for the dual-momentum sleeves and 25% for the residual sleeve, limiting emerging-markets exposure to 25%, with all changes implemented at the weekly reconstitution [1]

Core Insights - The Invesco S&P SmallCap Momentum ETF (XSMO US) is based on the S&P SmallCap 600 Momentum Index, which focuses on profitable and liquid U.S. small-cap stocks [1] - The index selects the top 120 securities based on risk-adjusted price momentum, utilizing standardized 6- and 12-month returns with outlier control [1] - Constituents are score-weighted, meaning those with higher momentum scores receive larger weights, while adhering to diversification controls to manage concentration risks [1] - The index undergoes semi-annual reconstitution and rebalancing, typically in June and December, using updated momentum calculations and current S&P 600 membership [1] - The small-cap parent index is maintained by a committee to ensure it reflects U.S. small-caps with sustained profitability, with market-cap guidelines that are below mid-cap and above micro-cap levels [1] Additional Insights - For further analysis of XSMO, an ETF analytics platform is available that provides institutional-grade insights, including performance and risk metrics, correlations, sensitivities, and factor exposure [2]

Core Viewpoint - Zacks Premium provides various tools and resources to help investors make informed decisions and maximize their stock market investments Group 1: Zacks Style Scores - Zacks Style Scores are indicators that rate stocks based on value, growth, and momentum methodologies, aiding investors in selecting stocks likely to outperform the market in the next 30 days [3] - Each stock receives an alphabetic rating from A to F, with A indicating the highest potential for outperformance [4] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score, which combines all three styles [4][5][6][7] Group 2: Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to assist investors in building successful portfolios [8] - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +23.9% since 1988, significantly outperforming the S&P 500 [9] - To optimize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [10] Group 3: Company Spotlight - Ameriprise Financial Services - Ameriprise Financial, headquartered in Minneapolis, has total assets under management of $1.66 trillion as of September 30, 2025 [12] - The company holds a Zacks Rank of 3 (Hold) and a VGM Score of A, indicating solid performance potential [12] - Ameriprise has a Value Style Score of A, with a forward P/E ratio of 12.2, and has seen positive earnings estimate revisions, increasing the Zacks Consensus Estimate by $0.35 to $38.75 per share [13]

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 have recently shown price momentum can be a safer strategy [3] Group 2: Freightcar America (RAIL) Analysis - Freightcar America (RAIL) has shown significant price momentum with a four-week price change of 18% [4] - RAIL has gained 17.8% over the past 12 weeks, indicating its potential for sustained positive returns [5] - The stock has a beta of 1.67, suggesting it moves 67% more than the market in either direction [5] - RAIL has a Momentum Score of B, indicating a favorable time to invest [6] - The stock has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which attract more investor interest [7] - RAIL is trading at a Price-to-Sales ratio of 0.41, indicating it is reasonably valued at 41 cents for each dollar of sales [7] Group 3: Additional Investment Opportunities - Besides RAIL, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, suggesting further investment opportunities [8] - Zacks offers over 45 Premium Screens tailored to different investing styles, which can help identify winning stock picks [9]

Company Overview - Vertiv Holdings Co. (NYSE:VRT) provides critical digital infrastructure and continuity solutions across various industries, including data centers, communication networks, and commercial and industrial environments [1] - Competitors include Schneider Electric and Eaton Corporation, which also operate in the digital infrastructure space [1] Stock Performance - As of January 15, 2026, RBC Capital set a new price target for VRT at $200, representing a potential increase of about 13.02% from the current trading price of approximately $176.96 [2] - The stock is currently priced at $177.33, reflecting an increase of 3.79% or $6.47, indicating positive momentum [3][6] - Over the past year, VRT has experienced significant price movement, reaching a high of $202.45 and a low of $53.60, which may attract momentum investors [4] Market Capitalization and Trading Activity - Vertiv's market capitalization is approximately $67.8 billion, showcasing its substantial presence in the digital infrastructure industry [4][6] - The stock has a trading volume of 1,881,332 shares on the NYSE, indicating active investor interest and contributing to liquidity [5]

Core Viewpoint - Reddit Inc. shares have entered a high-performance tier with significant momentum metrics following a price target adjustment by Wells Fargo [1][4]. Group 1: Momentum Shift - Reddit's momentum score increased from 89.79 to 90.98 week-over-week, placing it in the top decile of market performers, indicating exceptional relative strength [2]. - The stock is experiencing positive price trends across short, medium, and long terms, signaling an upward trend over the past year and recent quarters [3]. Group 2: Analyst Sentiment - Wells Fargo analyst Ken Gawrelski raised the price target for Reddit from $186 to $207 while maintaining an Equal Weight rating, reflecting fundamental optimism [4]. - The bank highlighted steady execution and favorable market conditions that could lead to a strong fourth-quarter performance, with 2026 seen as a pivotal year due to advancements in AI search capabilities and data licensing renewals [5]. Group 3: Valuation vs. Performance - Despite strong momentum, Reddit's Value score is low at 4.91, indicating the stock is trading at a premium relative to its fundamentals, as investors focus on growth and recent price strength [6]. - In 2026, Reddit shares have increased by 8.93%, with a 74.30% rise over the last six months and a 47.86% increase over the past year [7].

Core Viewpoint - AAR Corporation is a significant player in the aviation services industry, providing various products and services to commercial aviation, government, and defense markets, with a focus on maintenance, repair, and overhaul services, as well as supply chain management solutions [1] Group 1: Stock Performance and Ratings - KeyBanc upgraded AAR Corporation to "Overweight" with a price target of $109, indicating a positive outlook on the stock priced at $97.71 [2][6] - The stock experienced a slight decrease of 0.52%, with a trading range of $97.27 to $99.65 on the day [4][6] - Over the past year, AAR's stock reached a high of $99.65 and a low of $46.51, indicating significant price movement [4] Group 2: Market Capitalization and Trading Volume - AAR's market capitalization is approximately $3.56 billion, with a trading volume of 565,946 shares [5] Group 3: Momentum Investing - AAR is considered a strong momentum stock, appealing to momentum investors, and has achieved a Momentum Style Score of A according to Zacks Investment Research [3][6] - Price changes and earnings estimate revisions are highlighted as key factors in evaluating momentum stocks, further supporting AAR's strong momentum profile [5]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, with the aim of buying high and selling higher, capitalizing on established price movements [1]. Company Overview: Huntington Ingalls (HII) - Huntington Ingalls currently holds a Momentum Style Score of A, indicating strong momentum characteristics [2]. - The company has a Zacks Rank of 2 (Buy), suggesting it is positioned for potential outperformance in the market [3]. Performance Metrics - HII shares have increased by 10.65% over the past week, outperforming the Zacks Aerospace - Defense industry, which rose by 7.17% during the same period [5]. - Over the last month, HII's price change is 25.97%, significantly higher than the industry's 12.53% [5]. - In the past quarter, HII shares have surged by 43.17%, and over the last year, they have gained 108.51%, while the S&P 500 has only increased by 4.96% and 20.67%, respectively [6]. Trading Volume - HII's average 20-day trading volume is 537,237 shares, which serves as a bullish indicator when combined with rising stock prices [7]. Earnings Outlook - Recent earnings estimate revisions for HII show one upward revision and one downward revision for the current fiscal year, leading to a consensus estimate increase from $15.02 to $15.07 [9]. - For the next fiscal year, three estimates have moved upwards with no downward revisions, indicating positive sentiment [9]. Conclusion - Given the strong performance metrics and positive earnings outlook, HII is positioned as a 2 (Buy) stock with a Momentum Score of A, making it a compelling option for investors seeking short-term gains [11].