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 Genworth Financial (GNW – 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. Genworth Financial currently has a Zack ranking of # 2 (Buy). 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 >>>
Ready to beat the market?
To see if GNW is a promising time choice, let's look at some Momentum-style elements to see if this financial services company is doing it.
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 GNW, equities rose 4.13% over the past week, while Zacks' life insurance business grew 2.95% over the same period. Equities also look pretty good in the long run, with the monthly price change of 10.21% comparing favorably with the sector's 1% 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, Genworth Financial shares increased 24.67% and increased 52.24% over the last year. In comparison, the S & P 500 has only grown by -10.31% and -4.38%, respectively.
Investors should also pay close attention to the average volume of GNW 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. GNW is currently averaging 4,170,319 shares for 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 recently noticed this with GNW.
Over the past two months, 1 the earnings estimate has increased relative to none during the year. These revisions helped to increase the GNW consensus estimate from US $ 1.17 to US $ 1.18 in the last 60 days. With regard to the following exercise, 1 estimate increased, but no downward revision was made during the same period.
Taking all these elements into account, it is not surprising that GNW is a No. 2 title (buy) with a Momentum score of A. If you are looking for a new choice that will increase in the short term, be sure to keep Genworth Financial on your list.