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 Norbord, Inc. 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 OSB’s status as a solid momentum stock below:

Short Term Price Change for Norbord

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 0.7% compared to an industry average of -1.4%, OSB 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 OSB

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 OSB 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 OSB has risen by 4.5%. On its own this is impressive, but consider that it also beats the industry average of 0.0% too. The trend is undeniably in Norbord’s favor right now, and it suggests that the momentum might be long lasting for this stock.  

OSB 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 OSB as of late too.

Over the past two months, 1 earnings estimate has gone higher compared to no downward revisions for the full year, while we are also seeing 1 upward revision with no downward revisions for the next year time frame too.  These revisions have helped to boost the consensus estimate as two months ago OSB was expected to post earnings of $1.55/share for the full year, though today it looks to have EPS of $1.62 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 OSB 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 OSB 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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