Here's Why Doctor Reddy's (RDY) is a Strong Momentum Stock
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?
Different than value or growth investors, momentum-oriented investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
Doctor Reddy's (RDY)
India-based Dr. Reddy’s Laboratories Ltd. is an integrated global pharmaceutical company engaged in providing affordable and innovative medicines since 1984. The company markets its products in countries like the U.S., UK, Germany, India, Russia, Venezuela, Romania and South Africa. Dr. Reddy’s operates through three segments: • Global Generics – This segment consists of unbranded prescription drugs along with over-the-counter (OTC) drugs. It includes the operations of the company’s biologics business. The segment accounted for about 87% of the company’s total revenues generated in the fiscal year 2023.
RDY boasts a Momentum Style Score of A and VGM Score of A, and holds a Zacks Rank #3 (Hold) rating. Shares of Doctor Reddy's has seen some interesting price action recently; the stock is down 0.2% over the past one week and up 7.7% over the past four weeks. And in the last one-year period, RDY has gained 29.9%. As for the stock's trading volume, 246,868.30 shares on average were traded over the last 20 days.
Momentum investors also pay close attention to a company's earnings. For RDY, two analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.06 to $3.86 per share for 2024. RDY boasts an average earnings surprise of 35.3%.
With strong earnings growth, a good Zacks Rank, and top-tier Momentum and VGM Style Scores, investors should think about adding RDY to their portfolios.
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Dr. Reddy's Laboratories Ltd (RDY) : Free Stock Analysis Report
