Many investors like to look for momentum in stocks, but this can be very tough to define. There is great debate regarding which metrics are the best to focus on in this regard, and which are not really quality indicators of future performance. Fortunately, with our new style score system we have identified the key statistics to pay close attention to and thus which stocks might be the best for momentum investors in the near term.
This method discovered several great candidates for momentum-oriented investors, but today let’s focus in on AU Optronics Corp. as this stock is looking especially impressive right now. And while there are numerous ways in which this company could be a great choice, we have highlighted three of the most vital reasons for AUO’s status as a solid momentum stock below:
Short Term Price Change for AU Optronics
A great place to look for finding momentum stocks is by inspecting short term price activity. This can help to reflect the current interest in a stock and if buyers or sellers have the upper hand right now. It is especially useful to compare it to the industry as this can help investors pinpoint the top companies in a particular area.
With a one week price change of 5.1% compared to an industry average of 0.5%, AOU is certainly well-positioned in this regard. The stock is also looking quite well from a longer time frame too, as the four week price change compares favorably with the industry at large as well.
Fiscal Year EPS Estimate Change for AOU
In addition to price performance, it is also important to take a look at earnings estimate changes for the full year. This can show if AOU is poised to make a run based on fundamentals, or if the company is simply moving on speculation.
Over the past week, the full year earnings estimate for AOU has risen by 60 %. On its own this is impressive, but consider that it also beats the industry average of 0 too. The trend is undeniably in AU Optronics’s favor right now, and it suggests that the momentum might be long lasting for this stock.
AOU Earnings Estimate Revisions Moving in the Right Direction
While the great momentum factors outlined in the preceding paragraphs might be enough for some investors, we should also take into account broad earnings estimate revision trends. A nice path here can really help to show us a promising stock, and we have actually been seeing that with AOU as of late too.
Over the past two months, 1 earnings estimate has gone higher compared to none lower for the full year, while we are also seeing that 1 estimate has moved upwards with no downward revision for the next year time frame too. These revisions have helped to boost the consensus estimate as two months ago AOUwas expected to post a loss of 13 cents per share for the full year, though today it looks to have a loss 4 cents for the full year now, representing a solid increase which is something that should definitely be welcomed news to would-be investors.
Bottom Line
Given these factors, investors shouldn’t be surprised to note that we have AOU as a security with a Zacks Rank #2 (Buy) and a Momentum Score of ‘A’. So if you are looking for a fresh pick that has potential to move in the right direction, definitely keep AOU on your short list as this looks be a stock that is very well-positioned to soar in the near term.
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3 Reasons AU Optronics (AUO) is a Great Momentum Stock
Many investors like to look for momentum in stocks, but this can be very tough to define. There is great debate regarding which metrics are the best to focus on in this regard, and which are not really quality indicators of future performance. Fortunately, with our new style score system we have identified the key statistics to pay close attention to and thus which stocks might be the best for momentum investors in the near term.
This method discovered several great candidates for momentum-oriented investors, but today let’s focus in on AU Optronics Corp. as this stock is looking especially impressive right now. And while there are numerous ways in which this company could be a great choice, we have highlighted three of the most vital reasons for AUO’s status as a solid momentum stock below:
Short Term Price Change for AU Optronics
A great place to look for finding momentum stocks is by inspecting short term price activity. This can help to reflect the current interest in a stock and if buyers or sellers have the upper hand right now. It is especially useful to compare it to the industry as this can help investors pinpoint the top companies in a particular area.
With a one week price change of 5.1% compared to an industry average of 0.5%, AOU is certainly well-positioned in this regard. The stock is also looking quite well from a longer time frame too, as the four week price change compares favorably with the industry at large as well.
Fiscal Year EPS Estimate Change for AOU
In addition to price performance, it is also important to take a look at earnings estimate changes for the full year. This can show if AOU is poised to make a run based on fundamentals, or if the company is simply moving on speculation.
Over the past week, the full year earnings estimate for AOU has risen by 60 %. On its own this is impressive, but consider that it also beats the industry average of 0 too. The trend is undeniably in AU Optronics’s favor right now, and it suggests that the momentum might be long lasting for this stock.
AOU Earnings Estimate Revisions Moving in the Right Direction
While the great momentum factors outlined in the preceding paragraphs might be enough for some investors, we should also take into account broad earnings estimate revision trends. A nice path here can really help to show us a promising stock, and we have actually been seeing that with AOU as of late too.
AU OPTRONCS-ADR Price and Consensus
AU OPTRONCS-ADR Price and Consensus | AU OPTRONCS-ADR Quote
Over the past two months, 1 earnings estimate has gone higher compared to none lower for the full year, while we are also seeing that 1 estimate has moved upwards with no downward revision for the next year time frame too. These revisions have helped to boost the consensus estimate as two months ago AOUwas expected to post a loss of 13 cents per share for the full year, though today it looks to have a loss 4 cents for the full year now, representing a solid increase which is something that should definitely be welcomed news to would-be investors.
Bottom Line
Given these factors, investors shouldn’t be surprised to note that we have AOU as a security with a Zacks Rank #2 (Buy) and a Momentum Score of ‘A’. So if you are looking for a fresh pick that has potential to move in the right direction, definitely keep AOU on your short list as this looks be a stock that is very well-positioned to soar in the near term.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>