Are You Looking for a Top Momentum Pick? Why Carpenter Technology (CRS) is a Great Choice

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades. While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us. Below, we take a look at Carpenter Technology (CRS), a company that currently holds a Momentum Style Score of B. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score. 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. Carpenter Technology currently has a Zacks Rank of #2 (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. Let's discuss some of the components of the Momentum Style Score for CRS that show why this maker of stainless steels and special alloys 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 CRS, shares are up 11.09% over the past week while the Zacks Steel - Speciality industry is up 3.79% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 23.39% compares favorably with the industry's 2.8% performance as well. While any stock can see a spike in price, it takes a real winner to consistently outperform the market. Shares of Carpenter Technology have increased 35.54% over the past quarter, and have gained 232.08% in the last year. On the other hand, the S&P 500 has only moved 5.33% and 26.85%, respectively. Investors should also pay attention to CRS'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. CRS is currently averaging 536,575 shares for the last 20 days. 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 CRS. Over the past two months, 1 earnings estimate moved higher compared to none lower for the full year. These revisions helped boost CRS's consensus estimate, increasing from $6.74 to $6.77 in the past 60 days. Looking at the next fiscal year, 2 estimates have moved upwards while there have been no downward revisions in the same time period. Given these factors, it shouldn't be surprising that CRS is a #2 (Buy) stock and boasts a Momentum Score of B. If you're looking for a fresh pick that's set to soar in the near-term, make sure to keep Carpenter Technology on your short list. Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest. This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months. Carpenter Technology Corporation (CRS) : Free Stock Analysis Report

Are You Looking for a Top Momentum Pick? Why Carpenter Technology (CRS) is a Great Choice

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