Back to top

Image: Bigstock

3 Reasons Momentum Stock Investors Will Love ARI Network Services (ARIS)

Read MoreHide Full Article

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 ARI Network Services, Inc. (ARIS - Free Report) 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 ARIS’s status as a solid momentum stock below:

Short Term Price Change for ARI Network Services

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 6.6% compared to an industry average of -1.7%, ARIS 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.

Longer Term Price Change for ARI Network Services

While any stock can see a spike in price, it takes a real winner to consistently outperform the market. That is why looking at longer term price metrics—such as performance over the past three months or year-- and comparing these to an industry at large can be very useful.

And in the case of ARIS, the results are quite impressive. The company has beaten out the industry at large over the past 12 weeks by a margin of 38.2% to 2.3% while it has also outperformed when looking at the past year, putting up a gain of 72.8%. Clearly, ARIS is riding a bit of a hot streak and is worth a closer look by investors.

ARI Network Services, Inc. Price

ARIS 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 ARIS as of late too.

Over the past two months, two earnings estimates have gone higher compared to none lower for the full year, while we are also seeing that two estimates have moved upwards with nodownward revision for the next year time frame too.  These revisions have helped to boost the consensus estimate as two months ago ARIS was expected to post earnings of 9 cents/share for the full year, though today it looks to have EPS of 14 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 ARIS as a security with a Zacks Rank #1 (Strong Buy) and a Momentum Score of ‘A’. You can see the complete list of today’s Zacks #1 Rank  stocks here.

So if you are looking for a fresh pick that has potential to move in the right direction, definitely keep ARIS on your short list as this looks be a stock that is very well-positioned to soar in the near term.

Sell These Stocks. Now

Just released, today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. These sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500. 

See today's Zacks ""Strong Sells"" absolutely free >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Aris Water Solutions, Inc. (ARIS) - free report >>

Published in