Are You Looking for a Top Momentum Pick? Why Acadian Asset Management (AAMI) is a Great Choice
Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at Acadian Asset Management (AAMI), which currently has a Momentum Style Score of B. We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Acadian Asset Management currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market?
Let's discuss some of the components of the Momentum Style Score for AAMI that show why this asset manager shows promise as a solid momentum pick.
Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area.
For AAMI, shares are up 4.58% over the past week while the Zacks Financial - Miscellaneous Services industry is flat over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 27.42% compares favorably with the industry's 7.95% performance as well.
While any stock can see a spike in price, it takes a real winner to consistently outperform the market. Over the past quarter, shares of Acadian Asset Management have risen 48.59%, and are up 62.52% in the last year. On the other hand, the S&P 500 has only moved 19.65% and 14.95%, respectively.
Investors should also pay attention to AAMI's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. AAMI is currently averaging 292,175 shares for the last 20 days.
Earnings Outlook
The Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with AAMI.
Over the past two months, 1 earnings estimate moved higher compared to none lower for the full year. This revision helped boost AAMI's consensus estimate, increasing from $2.86 to $3.18 in the past 60 days. Looking at the next fiscal year, 1 estimate has moved upwards while there have been no downward revisions in the same time period.
Bottom Line
Taking into account all of these elements, it should come as no surprise that AAMI is a #1 (Strong Buy) stock with a Momentum Score of B. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Acadian Asset Management on your short list.
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
Acadian Asset Management Inc. (AAMI) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
8 hours ago
- Yahoo
Is Adient (ADNT) Outperforming Other Auto-Tires-Trucks Stocks This Year?
Investors interested in Auto-Tires-Trucks stocks should always be looking to find the best-performing companies in the group. Has Adient (ADNT) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out. Adient is one of 96 individual stocks in the Auto-Tires-Trucks sector. Collectively, these companies sit at #15 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups. The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Adient is currently sporting a Zacks Rank of #1 (Strong Buy). Within the past quarter, the Zacks Consensus Estimate for ADNT's full-year earnings has moved 7.8% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend. Based on the most recent data, ADNT has returned 28.4% so far this year. At the same time, Auto-Tires-Trucks stocks have lost an average of 11.7%. This means that Adient is outperforming the sector as a whole this year. Another Auto-Tires-Trucks stock, which has outperformed the sector so far this year, is Garrett Motion (GTX). The stock has returned 28.7% year-to-date. For Garrett Motion, the consensus EPS estimate for the current year has increased 4.8% over the past three months. The stock currently has a Zacks Rank #2 (Buy). Breaking things down more, Adient is a member of the Automotive - Original Equipment industry, which includes 50 individual companies and currently sits at #89 in the Zacks Industry Rank. Stocks in this group have gained about 8.8% so far this year, so ADNT is performing better this group in terms of year-to-date returns. Garrett Motion is also part of the same industry. Adient and Garrett Motion could continue their solid performance, so investors interested in Auto-Tires-Trucks stocks should continue to pay close attention to these stocks. 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 Adient (ADNT) : Free Stock Analysis Report Garrett Motion Inc. (GTX) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
10 hours ago
- Yahoo
Western Digital (WDC) Stock Falls Amid Market Uptick: What Investors Need to Know
Western Digital (WDC) ended the recent trading session at $67.06, demonstrating a -2.44% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 0.06%. Meanwhile, the Dow experienced a rise of 0.41%, and the technology-dominated Nasdaq saw a decrease of 0.39%. Prior to today's trading, shares of the maker of hard drives for businesses and personal computers had gained 13.85% outpaced the Computer and Technology sector's gain of 9.6% and the S&P 500's gain of 5.88%. The upcoming earnings release of Western Digital will be of great interest to investors. The company's earnings report is expected on July 30, 2025. On that day, Western Digital is projected to report earnings of $1.47 per share, which would represent year-over-year growth of 2.08%. Our most recent consensus estimate is calling for quarterly revenue of $2.45 billion, down 34.79% from the year-ago period. Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.73 per share and revenue of $9.37 billion. These totals would mark changes of +2465% and 0%, respectively, from last year. Investors should also take note of any recent adjustments to analyst estimates for Western Digital. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability. Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model. Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 2.45% upward. Western Digital presently features a Zacks Rank of #1 (Strong Buy). In terms of valuation, Western Digital is presently being traded at a Forward P/E ratio of 11.78. This signifies a discount in comparison to the average Forward P/E of 13.9 for its industry. The Computer- Storage Devices industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 69, placing it within the top 28% of over 250 industries. The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Be sure to follow all of these stock-moving metrics, and many more, on 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 Western Digital Corporation (WDC) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
10 hours ago
- Yahoo
Are Investors Undervaluing Kion Group (KIGRY) Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks. Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large. Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now. One company value investors might notice is Kion Group (KIGRY). KIGRY is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 17.3 right now. For comparison, its industry sports an average P/E of 29.01. Over the past 52 weeks, KIGRY's Forward P/E has been as high as 18.76 and as low as 9.39, with a median of 11.61. Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. KIGRY has a P/S ratio of 0.64. This compares to its industry's average P/S of 1.22. These figures are just a handful of the metrics value investors tend to look at, but they help show that Kion Group is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, KIGRY feels like a great value stock at the moment. 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 Kion Group (KIGRY) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
