Why This 1 Momentum Stock Could Be a Great Addition to Your Portfolio
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Is This 1 Momentum Stock a Screaming Buy Right Now?
Momentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
Viper Energy Partners (VNOM)
Midland, TX-based Viper Energy Partners LP is a variable distribution MLP and is a subsidiary of Diamondback Energy — an independent oil & gas exploration and production company. The partnership has mineral interest in prolific oil-rich shale plays like the Eagle Ford and Permian Basin.
VNOM is a Zacks Rank #2 (Buy) stock, with a Momentum Style Score of A and VGM Score of B. Shares are up 5.1% over the past one week and up 5.6% over the past four weeks. VNOM has lost 9.1% in the last one-year period as well. Looking at trading volume, an average of 320,307.91 shares exchanged hands over the last 20 trading days.
Momentum investors don't just pay attention to price changes; positive earnings play a crucial role, too. Seven analysts revised their earnings estimate upwards in the last 60 days for fiscal 2023. The Zacks Consensus Estimate has increased $0.31 to $1.94 per share. VNOM boasts an average earnings surprise of 94.1%.
With strong earnings growth, a good Zacks Rank, and top-tier Momentum and VGM Style Scores, investors should think about adding VNOM to their portfolios.
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Viper Energy Partners LP (VNOM) : Free Stock Analysis Report
