Momentum investment revolves around the idea of following the recent trend of a two-way security. In the "long" context, investors will essentially "buy hard, but hope to sell even higher." With this methodology, it is essential to take advantage of stock price trends. once a stock has established a course, it is more than likely that it continues to follow that path. The goal is that once a security has a fixed trajectory, it results in timely and profitable transactions.
Although many investors are looking for equity dynamics, this can be very difficult to define. There is a lot of debate about the metrics on which it is best to focus and the poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks-style sheet music, helps us solve this problem.
Below we examine Abercrombie & Fitch (ANF – Free report) , which currently has a Momentum style score of A. We also discuss some of the key Momentum style score factors, such as price changes and revisions to earnings estimates.
It is also important to note that style scores complement Zacks Rank, our stock valuation system with an impressive track record of outperformance. Abercrombie & Fitch is currently ranked first in the Zacks (Strong Purchase). Our research shows that shares rated Zacks Rank # 1 (strong buy) and # 2 (buy) and style notes of A or B outperformed the market over the period of a subsequent month.
You can see the current list of Stocks Zacks # 1 here >>>
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In order to see if ANF is a promising momentum, let's look at some Momentum Style elements to see if this teenwear retailer is holding up.
An ideal benchmark for a security is to look at its short-term price activity, as this may reflect both the current interest and the fact that buyers or sellers currently have the upper hand. It is also useful to compare a stock to its sector, as this can help investors locate the best companies in a particular area.
For ANF, equities rose 2.99% over the past week, while the Zacks – Apparel and Footwear industry grew 2.99% over the same period. Stocks also look pretty good in the long run, with the monthly price change of 9.75% comparing favorably with the sector's 0.79% performance.
Although any action can see its price increase, it takes a real winner to systematically beat the market. This is why it can also be useful to take into account long-term price indicators, such as the performance of the last three months or the previous year. During the last quarter, Abercrombie & Fitch shares rose 14.55% and increased 19.52% over the last year. In comparison, the S & P 500 has only grown by -10.31% and -4.38%, respectively.
Investors should also pay particular attention to the average volume of ANF transactions over 20 days. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with a volume above the average is usually a bullish sign, while a falling stock with above average volume is generally bearish. ANF currently holds an average of 2,126,958 shares in the last 20 days.
The Zacks Momentum style score encompasses many elements, including estimate revisions and stock price movements. Investors should note that the estimated profits are also important for Zacks' ranking and that a good trajectory can be promising. We have recently noticed this with ANF.
In the last two months, 9 earnings estimates have increased from none during the year. These revisions helped to increase ANF's consensus estimate from US $ 0.76 to US $ 0.94 over the past 60 days. During the next fiscal year, nine estimates were identified, but no downward revisions were made during the same period.
Given all these elements, it is not surprising that ANF is a # 1 title (strong buy) with a Momentum score of A. If you have been looking for a new choice that should increase in the coming months. term, be sure to keep Abercrombie & Fitch on your list.