Why This 1 Momentum Stock Could Be a Great Addition to Your Portfolio

·2 min read

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

Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.

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.

Oracle (ORCL)

Redwood City, CA-based Oracle Corporation was founded in 1977 and incorporated later in 2005. Oracle is one of the largest enterprise-grade database, middleware and application software providers.

ORCL boasts a Momentum Style Score of A and VGM Score of B, and holds a Zacks Rank #3 (Hold) rating. Shares of Oracle has seen some interesting price action recently; the stock is up 3.7% over the past one week and up 2.5% over the past four weeks. And in the last one-year period, ORCL has gained 7.8%. As for the stock's trading volume, 8,476,133 shares on average were traded over the last 20 days.

Momentum investors also pay close attention to a company's earnings. For ORCL, 13 analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.13 to $5.02 per share for 2023. ORCL boasts an average earnings surprise of 3.2%.

Investors should take the time to consider ORCL for their portfolios due to its solid Zacks Ranks, notable earnings metrics, and impressive Momentum and VGM Style Scores.

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