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 Box, Inc. (BOX - Snapshot 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 BOX’s status as a solid momentum stock below:
Longer Term Price Change for Box
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 BOX, the results are quite impressive. The company has beaten out the industry at large over the past 12 weeks by a margin of 45.41% to 4.71% while it has also outperformed when looking at the past year, putting up a gain of 12.86%. Clearly, BOX is riding a bit of a hot streak and is worth a closer look by investors.
Quarter EPS Estimate Change for Box
While looking at price performance or full year earnings can be essential to understanding a momentum stock, you shouldn’t forget about the current quarter EPS and the trend in estimates there. This change can signal how a stock might perform in the next earnings season which is obviously vital for momentum investors.
Right now, BOX is seeing a nice trend over the past month when it comes to this quarter’s earnings estimate projections. In the time frame, EPS estimates for Boxhave gone up by 10.13% compared to an industry average move of 0.0%, suggesting that not only is BOX heading in the right direction, but it is seeing an increase relative to the industry too.
BOX 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 BOX as of late too.
Over the past two months, 1 earning estimate have gone higher compared to none lower for the full year, while we are also seeing that 1 estimates have moved upwards with no downward revisions for the next year time frame too. These revisions have helped to boost the consensus estimate as two months ago BOX was expected to post a loss of $1.37/share for the full year, though today it looks to have an loss per share of $1.29 for the full year now, representing a solid increase which is something that should definitely be welcomed news to would-be investors.
Given these factors, investors shouldn’t be surprised to note that we have BOX as a security with a Zacks Rank #2 (Buy) and a Momentum Score of ‘A’.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
So if you are looking for a fresh pick that has potential to move in the right direction, definitely keep BOX on your short list as this looks be a stock that is very well-positioned to soar in the near term.
Confidential from Zacks
Beyond this Tale of the Tape, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>