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."Who doesn't like betting on fast-moving trending stocks? But determining the right entry point isn't easy. Often, these stocks lose momentum once their valuation moves a ...

Core Viewpoint - Great Lakes Dredge & Dock (GLDD) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Institutional investors often rely on earnings estimates to determine a company's fair value, leading to stock price fluctuations based on their buying or selling activities [4]. Company Performance and Outlook - The upgrade reflects an improvement in Great Lakes Dredge & Dock's underlying business, suggesting that investors may respond positively by driving the stock price higher [5]. - For the fiscal year ending December 2025, the company is expected to earn $1.02 per share, with a 6.3% increase in the Zacks Consensus Estimate over the past three months [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade places Great Lakes Dredge & Dock in the top 5% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].

Group 1: Momentum Investing Overview - Momentum investing deviates from the traditional strategy of "buying low and selling high," focusing instead on "buying high and selling higher" to achieve quicker profits [1] - Fast-moving trending stocks can be challenging to enter at the right time, as they may lose momentum if future growth does not justify their inflated valuations [2] Group 2: Investment Strategy and Stock Selection - Investing in bargain stocks that have recently shown price momentum can be a safer approach, with tools like the Zacks Momentum Style Score aiding in identifying such stocks [3] - Great Lakes Dredge & Dock (GLDD) is highlighted as a strong candidate due to a 4.6% price increase over the past four weeks, reflecting growing investor interest [4] Group 3: Performance Metrics of GLDD - GLDD has demonstrated a 3.4% price gain over the past 12 weeks, indicating its ability to deliver positive returns over a longer timeframe [5] - The stock has a beta of 1.35, suggesting it moves 35% more than the market in either direction, indicating fast-paced momentum [5] Group 4: Valuation and Earnings Estimates - GLDD has a Momentum Score of B, suggesting it is an opportune time to invest in the stock for potential success [6] - The stock has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which typically attract more investor interest [7] - GLDD is trading at a Price-to-Sales ratio of 0.95, indicating it is relatively undervalued, as investors pay only 95 cents for each dollar of sales [7] Group 5: Additional Investment Opportunities - Besides GLDD, 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 tailored to outperform the market, providing additional avenues for stock selection [9]

Core Viewpoint - The article emphasizes the importance of confirming the sustainability of stock trends for successful short-term investing, highlighting the use of a specific screening strategy to identify stocks with strong fundamentals and positive price momentum [1][2]. Group 1: Stock Screening Strategy - The "Recent Price Strength" screen is designed to identify stocks with sufficient fundamental strength to maintain their recent uptrend, focusing on those trading in the upper portion of their 52-week high-low range, indicating bullishness [3]. - Great Lakes Dredge & Dock (GLDD) is highlighted as a strong candidate for trend investing, having increased by 35.8% over the past 12 weeks, reflecting investor confidence [4]. - GLDD has also shown a price increase of 2.9% over the last four weeks, indicating that the upward trend is still intact [5]. Group 2: Fundamental Strength Indicators - GLDD is currently trading at 84.6% of its 52-week high-low range, suggesting it may be on the verge of a breakout [6]. - The stock holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, which are critical for near-term price movements [6][7]. - The Average Broker Recommendation for GLDD is also 1 (Strong Buy), indicating strong optimism from the brokerage community regarding its near-term price performance [7]. Group 3: Additional Insights - The article suggests that the price trend for GLDD is unlikely to reverse soon, and encourages consideration of other stocks that meet the criteria of the "Recent Price Strength" screen [8]. - It also mentions the availability of over 45 Zacks Premium Screens tailored to different investing styles, which can assist in identifying potential winning stocks [8].

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than traditional strategies of "buying low and selling high" to maximize returns in a shorter time frame [1] Group 1: Momentum Investing Characteristics - Momentum investing can be risky as stocks may lose momentum when their valuations exceed future growth potential, leading to potential losses for investors [2] - A safer approach may involve investing in bargain stocks that have recently shown price momentum, utilizing tools like the Zacks Momentum Style Score to identify such opportunities [3] Group 2: Great Lakes Dredge & Dock (GLDD) Analysis - GLDD has shown a four-week price change of 2.4%, indicating growing investor interest and positioning it well within the momentum investing framework [4] - Over the past 12 weeks, GLDD's stock has gained 25.9%, with a beta of 1.29, suggesting it moves 29% more than the market in either direction [5] - GLDD has a Momentum Score of B, indicating a favorable time to invest based on momentum [6] Group 3: Earnings Estimates and Valuation - GLDD has received a Zacks Rank 1 (Strong Buy) due to upward trends in earnings estimate revisions, which typically attract more investor interest [7] - The stock is currently trading at a Price-to-Sales ratio of 0.97, suggesting it is undervalued as investors pay only 97 cents for each dollar of sales [7] Group 4: Additional Investment Opportunities - Besides GLDD, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting additional investment opportunities [8] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [9]

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 Strategy - Fast-moving trending stocks can be difficult to enter at the right time, as they may lose momentum if future growth does not justify their high valuations [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: Great Lakes Dredge & Dock (GLDD) Analysis - GLDD has shown a price increase of 24.8% over the past four weeks, indicating growing investor interest [4] - The stock has gained 1.2% over the past 12 weeks and has a beta of 1.23, suggesting it moves 23% more than the market [5] - GLDD holds a Momentum Score of A, indicating a favorable time to invest based on momentum [6] Group 3: Earnings Estimates and Valuation - GLDD has received upward revisions in earnings estimates, earning a Zacks Rank 1 (Strong Buy), which typically attracts more investors [7] - The stock is trading at a Price-to-Sales ratio of 0.94, suggesting it is undervalued as investors pay only 94 cents for each dollar of sales [7] Group 4: Additional Investment Opportunities - Besides GLDD, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - Zacks offers over 45 Premium Screens tailored to different investing styles, which can help identify potential winning stocks [9]