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 Meet Group (MEET – Free report) , a company that currently holds a Momentum style score of A. We also discuss price changes and revisions to earnings estimates, two of the key aspects of the Momentum style score.
It is also important to note that style scores complement Zacks Rank, our stock valuation system with an impressive track record of outperformance. Meet Group 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?
In order to see if MEET is a promising momentum, let's look at some Momentum Style elements to see if this dating site business holds up.
Examining the activity of the short-term price of an action is a great way to determine if it has momentum, as this may reflect both the current interest in an action and the fact that the Buyers or sellers are winning it right now. It is also useful to compare a security to one's industry. This can show investors the best companies in a particular area.
For MEET, equities rose by 8.67% over the past week, while the Internet industry Zacks software grew by 1.61% over the same period. Equities also look pretty good in the long run, with the monthly price change of 44.47% comparing favorably with the sector's 0.46% 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, Meet Group shares rose 18.07% and increased 102.89% over the past year. In contrast, the S & P 500 has only grown by -9.78% and -4.17%, respectively.
Investors should also pay particular attention to the average volume of MEET 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. MEET is currently averaging 1,263,024 shares for the last 20 days.
The Zacks Momentum Style Score also takes into account trends in revisions and estimates, as well as price changes. Please note that estimation revision trends also remain at the heart of Zacks' ranking. A good path here can help show promising results, and we have recently seen it with MEET.
Over the past two months, 1 the earnings estimate has increased relative to none during the year. These revisions helped advance MEET's consensus estimate from $ 0.34 to $ 0.35 over the past 60 days. During the next fiscal year, two estimates were identified while no downward revisions were made during the same period.
Given these factors, it should not be surprising that MEET is a No. 2 title (buy) and boasts an A momentum. If you are looking for a new choice that should take the scale In the short term, make sure you keep the dating group on your short list.