Momentum investing means that investors follow a recent stock trend that can go in both directions. In the long run, they will buy high and hope to sell even higher than that. Using all the advantages of such a trend in is an essential thing for investors that follow this methodology. When a stock takes a direction, it is quite sure that it continues in the same course. The main objective here is to follow a stock while it goes up a fixed path because it leads to successful and profitable trades.
Despite the fact that momentum is a well-known stock characteristic, it can be often hard to determine it. There is a big noise around the question of the best and worst types of calculations, and different analysts use different metrics. However, we will use the Zacks Momentum Style Score here, and it will explain the situation more clearly.
Fortinet (NASDAQ: FTNT) is a company that presently has a Momentum Style Score of B at Zacks, and we will talk more about it further in this text. Earnings estimate revisions and a price change is going to be the main subject of the Momentum Style Score.
It is important to know that Zacks Style Score acts as a partner to the Zacks Rank and this rating system definitely has an exceptional record of outperformance. This company presently has a Zacks Rank of #1, which means the stock is a strong buy. Also, it is quite certain that stocks ranked at Styles Score of A and B with Zacks Rank #1 and #2 exceed the market expectations during the one month period.
To see if Fortinet is a momentum pick with good potential, we should check some Momentum Style details and that way we will determine if this security company holds up.
A positive momentum basis for a stock is to observe the short-time price movements since this can discover present interests and if investors presently have a dominant position. This is also useful to balance a security with its industry and that shows the best firms in the desired area.
Fortinet stock is up 5.65 percent during the last week and the Zacks Security is up 3.78 percent during the same period of time. The company’s stock seems pretty well from a longer point of view and the monthly price jump of 10.44 percent takes a great advantage of the industry’s 0.64 percent.
While the price of any stock can easily change in a second, it certainly needs to be a real winner to constantly outrun the market. It is the reason to observe long-term price calculations, such as the metrics of the last three month or even an entire year because they can be truly useful. FTNT stock has moved up 38.88% during the last quarter and has gained more than 124% during the last year. While the S&P 500 has increased just 17.95% and 5.7%, respectively. According to the data, it is clear why Fortinet stock takes a Zacks Rank #1 and a Momentum Score of B.