Are You a Momentum Investor? This 1 Stock Could Be the Perfect Pick
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Is This 1 Momentum Stock a Screaming Buy Right Now?
Momentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
Shake Shack (SHAK)
Founded in 2001, Shake Shack, Inc. is a New York-based fast food hamburger restaurant chain. Shake Shack restaurants operate in the United States and internationally. It is one of the nation’s largest hamburger chains offering beef burgers, flat-top dogs, chicken sandwiches, frozen custard and crinkle cut and other food items.
SHAK sits at a Zacks Rank #2 (Buy), holds a Momentum Style Score of A, and has a VGM Score of A. The stock is up 3.2% and up 1.6% over the past one-week and four-week period, respectively, and Shake Shack has gained 26.6% in the last one-year period as well. Additionally, an average of 881,068.69 shares were traded over the last 20 trading sessions.
Momentum investors don't just pay attention to price changes; positive earnings play a crucial role, too. 10 analysts revised their earnings estimate upwards in the last 60 days for fiscal 2023. The Zacks Consensus Estimate has increased $0.07 to $0.33 per share. SHAK boasts an average earnings surprise of 78.1%.
SHAK should be on investors' short list because of its impressive earnings fundamentals, a good Zacks Rank, and strong Momentum and VGM Style Scores.
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Shake Shack, Inc. (SHAK) : Free Stock Analysis Report
