3 Reasons Masonite International (DOOR) is a Great Momentum Stock
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 Masonite International Corporation DOOR 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 forDOOR’s status as a solid momentum stock below:
Longer Term Price Change for Masonite International
While any stock can see a spike in price, it takes a real winner to consistently outperform the market. That is why looking at longer term price metrics—such as performance over the past three months or year-- and comparing these to an industry at large can be very useful.
And in the case of DOOR, the results are quite impressive. The company has beaten out the industry at large over the past 12 weeks by a margin of 24.4% to a loss of 3.9% while it has also outperformed when looking at the past year, putting up a gain of 26.8%. Clearly, DOOR is riding a bit of a hot streak and is worth a closer look by investors.
Masonite International Corporation Price
Masonite International Corporation Price | Masonite International Corporation Quote
Fiscal Year EPS Estimate Changefor DOOR
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 DOORis poised to make a run based on fundamentals, or if the company is simply moving on speculation.
Over the past month, the full year earnings estimate for DOOR has risen by 18.3%. On its own this is impressive, but considers that it also beats the industry average of break-even. The trend is undeniably in Masonite International’s favor right now, and it suggests that the momentum might be long lasting for this stock.
DOOR 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 DOOR as of late too.
Over the past two months, six earnings estimates have gone higher compared to none lower for the full year, while we are also seeing that three estimates have moved upward with no downward revision for the next year time frame too. These revisions have helped to boost the consensus estimate as two months ago TICKER was expected to post earnings of $3.59 /share for the full year, though today it looks to have EPS of $4.24 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 DOOR 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 DOOR 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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