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Tale of the Tape

Zacks Equity Research

3 Reasons Why Palatin Technologies (PTN) is a Great Momentum Stock
September 26, 2016

PTN

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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 Palatin Technologies Inc. (PTN - 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 PTN’s status as a solid momentum stock below:

Short Term Price Change for Palatin Technologies

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 23.5% compared to an industry average of -4.5%, PTN 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 PTN

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 PTN 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 PTN has risen by 12.2%. On its own this is impressive, but consider that it also beats the industry average of 0 too. The trend is undeniably in Palatin Technologies’s favor right now, and it suggests that the momentum might be long lasting for this stock. 

PTN 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 PTN as of late too.

PALATIN TECH Price and Consensus

PALATIN TECH Price and Consensus | PALATIN TECH Quote

Over the past two months, 1 earnings estimate has gone higher compared to none lower for the full year. These revisions have helped to boost the consensus estimate as two months ago PTN was expected to post a loss of 37 cents/share for the full year, though today it looks to have a loss of 33 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 PTN 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 PTN 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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