Australia markets closed

    -8.20 (-0.10%)

    -0.0021 (-0.32%)
  • ASX 200

    -11.60 (-0.15%)
  • OIL

    -0.32 (-0.41%)
  • GOLD

    +9.10 (+0.43%)
  • Bitcoin AUD

    +2,781.16 (+2.77%)
  • CMC Crypto 200

    0.00 (0.00%)

Are You a Momentum Investor? This 1 Stock Could Be the Perfect Pick

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.

While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.

Is This 1 Momentum Stock a Screaming Buy Right Now?

For momentum investors, upward or downward trends in a stock's price or earnings outlook take precedent, so they'll want to zero in on the Momentum Style Score. This Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.

Ares Capital (ARCC)

Incorporated in Maryland, Ares Capital Corporation is a specialty finance company, which primarily invests in U.S. middle-market companies (firms having annual earnings in the range of $10-$250 million). Here, annual earnings refer to earnings that are calculated before deducting interest, taxes, and depreciation and amortization expenses.

ARCC sits at a Zacks Rank #3 (Hold), holds a Momentum Style Score of A, and has a VGM Score of B. The stock is up 0.8% and up 2.4% over the past one-week and four-week period, respectively, and Ares Capital has gained 4.8% in the last one-year period as well. Additionally, an average of 2,962,104.75 shares were traded over the last 20 trading sessions.

A company's earnings performance is important for momentum investors as well. For fiscal 2023, four analysts revised their earnings estimate higher in the last 60 days for ARCC, while the Zacks Consensus Estimate has increased $0.01 to $2.34 per share. ARCC also boasts an average earnings surprise of 2.2%.

ARCC should be on investors' short list because of its impressive earnings fundamentals, a good Zacks Rank, and strong Momentum and VGM Style Scores.

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

Ares Capital Corporation (ARCC) : Free Stock Analysis Report

To read this article on click here.

Zacks Investment Research