Why American Equity Investment (AEL) is a Top Momentum Stock for the Long-Term

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

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.

American Equity Investment (AEL)

Incorporated in the state of Iowa on Dec 15, 1995, American Equity Investment Life Insurance Company is a leader in the development and sale of fixed index and fixed rate annuity products. The company issue fixed annuity products through its wholly-owned life insurance subsidiaries, American Equity Investment Life Insurance Company, American Equity Investment Life Insurance Company of New York and Eagle Life Insurance Company.

AEL boasts a Momentum Style Score of B and VGM Score of A, and holds a Zacks Rank #3 (Hold) rating. Shares of American Equity Investment has seen some interesting price action recently; the stock is up 0.5% over the past one week and up 0.7% over the past four weeks. And in the last one-year period, AEL has gained 38.2%. As for the stock's trading volume, 429,770.44 shares on average were traded over the last 20 days.

A company's earnings performance is important for momentum investors as well. For fiscal 2023, two analysts revised their earnings estimate higher in the last 60 days for AEL, while the Zacks Consensus Estimate has increased $0.21 to $6.48 per share. AEL also boasts an average earnings surprise of 6.5%.

With strong earnings growth, a good Zacks Rank, and top-tier Momentum and VGM Style Scores, investors should think about adding AEL to their portfolios.

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