Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With 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 that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.While many investors like to look for momentum i ...

Company Performance - Badger Meter (BMI) closed at $181.26, reflecting a -1.03% change from the previous day, underperforming the S&P 500 which gained 0.46% [1] - Over the last month, Badger Meter's shares increased by 2.99%, lagging behind the Computer and Technology sector's gain of 4.54% and the S&P 500's gain of 4.22% [2] - The upcoming earnings per share (EPS) is projected at $1.14, indicating a 9.62% increase year-over-year, with revenue expected to be $231.61 million, a 12.88% increase compared to the same quarter last year [3] - For the full year, earnings are projected at $4.79 per share and revenue at $927.59 million, representing increases of +13.24% and +12.22% respectively from the prior year [4] Analyst Insights - Recent revisions to analyst forecasts for Badger Meter should be monitored, as they reflect near-term business trends and analysts' confidence in the company's profitability [5] - The Zacks Rank system, which evaluates estimate changes, currently ranks Badger Meter at 4 (Sell), with the consensus EPS estimate having decreased by 0.13% over the past month [6][7] Valuation Metrics - Badger Meter is trading at a Forward P/E ratio of 38.22, which is a premium compared to the industry average Forward P/E of 24.25 [8] - The company has a PEG ratio of 3.02, higher than the industry average PEG ratio of 2.18, indicating a higher valuation relative to expected earnings growth [8] Industry Context - The Instruments - Control industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 102, placing it in the top 42% of over 250 industries [9]

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With 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 that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Even though momentum is a popular stock characte ...

Transcat, Inc. (TRNS) shares rallied 5.4% in the last trading session to close at $59.24. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 3.5% gain over the past four weeks.The uptrend in shares was primarily attributable to optimism regarding a likely rebound in the sagging stock prices owing to a holistic growth model. It is focused on providing best-in-class services and products to pharmaceutical, biotech ...

Company Performance - Badger Meter (BMI) closed at $177.38, reflecting a -1.53% change from the previous day, underperforming the S&P 500 which lost 0.35% [1] - Over the past month, shares of Badger Meter have decreased by 4.11%, while the Computer and Technology sector gained 1.71% and the S&P 500 gained 1.2% [1] Earnings Expectations - The upcoming earnings report for Badger Meter is anticipated to show an EPS of $1.14, representing a 9.62% increase from the same quarter last year [2] - Revenue is expected to reach $231.89 million, indicating a 13.02% increase compared to the prior year [2] Annual Projections - For the annual period, earnings are projected at $4.8 per share and revenue at $927.86 million, reflecting increases of +13.48% and +12.26% respectively from the previous year [3] - Recent changes in analyst estimates are crucial as they often indicate the near-term business trends and overall outlook on the company's health and profitability [3] Valuation Metrics - Badger Meter is currently trading at a Forward P/E ratio of 37.55, which is a premium compared to its industry's Forward P/E of 23.48 [6] - The company has a PEG ratio of 2.97, while the average PEG ratio for the Instruments - Control industry is 2.15 [6] Industry Context - The Instruments - Control industry is part of the Computer and Technology sector, holding a Zacks Industry Rank of 18, placing it in the top 8% of over 250 industries [7] - The Zacks Industry Rank measures the strength of industry groups based on the average Zacks Rank of individual stocks, indicating that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the aim of buying high and selling higher, capitalizing on established price movements [1] - The Zacks Momentum Style Score helps define momentum characteristics, with Thermon Group (THR) currently holding a Momentum Style Score of A [2][3] Group 2: Thermon Group Performance - Thermon Group has a Zacks Rank of 2 (Buy), indicating strong potential for outperformance in the market [3] - Over the past week, THR shares increased by 19.07%, while the Zacks Instruments - Control industry remained flat [5] - In a longer timeframe, THR shares rose by 36.75% monthly, significantly outperforming the industry's 0.62% [5] - Over the last quarter, THR shares increased by 37.02%, and by 19.57% over the past year, compared to the S&P 500's gains of 7.27% and 15.21%, respectively [6] Group 3: Trading Volume and Earnings Outlook - THR's average 20-day trading volume is 221,969 shares, which is a useful indicator of market interest [7] - In terms of earnings estimates, THR has seen 2 upward revisions in the past two months, raising the consensus estimate from $1.85 to $2.06 [9] - For the next fiscal year, there has been 1 upward revision with no downward revisions, indicating positive earnings outlook [9] Group 4: Conclusion - Considering the positive momentum indicators and earnings outlook, Thermon Group is positioned as a 2 (Buy) stock with a Momentum Score of A, making it a strong candidate for near-term investment [11]

Core Insights - Watts Water Technologies, Inc. (WTS) reported third-quarter 2025 adjusted earnings per share (EPS) of $2.50, an increase from $2.03 in the prior-year quarter, beating the Zacks Consensus Estimate by 9.2% [1][9] - The company's quarterly net sales rose 13% year over year to $611.7 million, surpassing the Zacks Consensus Estimate by 5.9% [1][9] - Organic sales increased by 9% year over year, driven by favorable pricing, volume, and pull-forward demand [1][9] Acquisition and Integration - In the third quarter, WTS acquired Haws Corporation, enhancing its emergency safety and hydration solutions capabilities [2] - Integration and synergy efforts across Bradley, Josam, I-CON, and EasyWater are progressing ahead of expectations [2] Regional Performance - The Americas segment saw net sales increase by 1% to $464 million, with organic sales jumping 13% [5] - Europe reported net sales growth of 4% year over year to $112 million, but organic sales decreased by 2% [6] - APMEA experienced a 1% decline in net sales to $36 million, with organic sales remaining flat [7] Financial Performance - Gross profit increased by 16.1% year over year to $298.4 million, while operating income rose by 19.5% to $111.4 million [10] - Adjusted operating margin expanded by 110 basis points to 18.2%, driven by favorable pricing and productivity gains [11] Cash Flow and Liquidity - For the nine months ended September 28, 2025, WTS generated $247.3 million in cash from operating activities, up from $221.6 million in the prior-year period [12] - Free cash flow for the same period was $216 million, compared to $204.2 million a year ago [13] Guidance - WTS raised its full-year 2025 sales guidance to an expected increase of 7%-8%, up from the previous range of 2%-5% [16] - Adjusted EBITDA margin is now forecasted to be between 21.5% and 21.6%, indicating an improvement of 140 to 150 basis points [17] Stock Performance - Shares of WTS have gained 33.1% over the past year, significantly outperforming the Zacks Instruments - Control industry, which grew by 4.8% [4]

Core Insights - Thermon Group (THR) reported quarterly earnings of $0.55 per share, exceeding the Zacks Consensus Estimate of $0.36 per share, and up from $0.38 per share a year ago, representing an earnings surprise of +52.78% [1] - The company achieved revenues of $131.72 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 9.82% and increasing from $114.65 million year-over-year [2] - Thermon Group has outperformed consensus EPS estimates three times over the last four quarters and has topped consensus revenue estimates two times in the same period [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.58 on revenues of $138.54 million, and for the current fiscal year, it is $1.85 on revenues of $507.25 million [7] - The estimate revisions trend for Thermon Group was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Instruments - Control industry, to which Thermon Group belongs, is currently ranked in the top 24% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Core Insights - Watts Water (WTS) reported quarterly earnings of $2.5 per share, exceeding the Zacks Consensus Estimate of $2.29 per share, and up from $2.03 per share a year ago, representing an earnings surprise of +9.17% [1] - The company achieved revenues of $611.7 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 5.90%, and an increase from $543.6 million year-over-year [2] - Watts Water's stock has increased by approximately 35.1% year-to-date, outperforming the S&P 500's gain of 15.1% [3] Earnings Outlook - The future performance of Watts Water's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4] - The current consensus EPS estimate for the upcoming quarter is $2.06 on revenues of $561.06 million, and for the current fiscal year, it is $9.86 on revenues of $2.34 billion [7] Industry Context - The Instruments - Control industry, to which Watts Water belongs, is currently ranked in the top 24% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Core Insights - Sensata Technologies is a significant player in the Zacks Instruments - Control industry, providing sensors and controls for automotive, industrial, and aerospace applications, and has consistently met market expectations despite competition [1] Financial Performance - For Q3 2025, Sensata reported an EPS of $0.89, exceeding the estimated $0.85 by 4.71%, and improved from $0.86 in the same quarter last year [2][6] - The company's revenue reached $932 million, surpassing the estimated $921 million, although it reflects a 5.2% decline from $983 million in the previous year, still exceeding the Zacks Consensus Estimate of $915 million by 1.86% [3][6] Financial Health - Sensata's current ratio is 2.71, indicating a strong ability to cover short-term liabilities, while its debt-to-equity ratio stands at 1.11, suggesting a moderate level of debt [4][6] Valuation Metrics - The company has a P/E ratio of 40.51, a price-to-sales ratio of 1.20, an enterprise value to sales ratio of 1.87, and an enterprise value to operating cash flow ratio of 12.44, with an earnings yield of 2.47% [5]