Momentum investing holds a significant place in the world of finance. It revolves around the concept of following a stock's recent trend, whether it's upward or downward. In the long term, investors often find themselves "buying high" with the hope of selling even higher. For those adhering to this methodology, capitalizing on stock price trends is crucial. Once a stock sets a course, it is highly likely to continue moving in that direction, aiming for timely and profitable trades. Unlock the Potential of Momentum Investing with BlackRock
Short-Term Price Activity: A Key Indicator
When it comes to evaluating a stock's momentum, looking at its short-term price activity is essential. This reflects the current interest and gives insights into whether buyers or sellers hold the upper hand. For BlackRock Finance (BLK), shares have shown an increase of 0.78% over the past week, while the Zacks Financial – Investment Management industry remained flat during the same period. From a longer time frame, the monthly price change of 2.73% is favorable compared to the industry's 2.21% performance. This indicates that BLK is performing well in terms of short-term price trends.Moreover, consistent outperformance over the past quarter and year is a sign of a real winner. BLK's shares have increased by 16.02% in the past quarter and 41.88% in the last year, while the S&P 500 has only moved 5.83% and 32.65%, respectively. These figures highlight the company's ability to generate strong returns and stay ahead of the market.Volume: A Useful Tool for Investors
Investors should pay close attention to BLK's average 20-day trading volume. Volume serves as a valuable metric in many ways, and the 20-day average provides a good price-to-volume baseline. A rising stock with above average volume is generally a bullish sign, while a declining stock with above average volume is typically bearish. Currently, BLK is averaging 564,679 shares over the last 20 days, which indicates a certain level of trading activity and market interest.Estimate Revisions: A Vital Component
In addition to price changes, the Zacks Momentum Style Score also considers trends in estimate revisions. This remains at the core of the Zacks Rank as well. For BLK, over the past two months, 7 earnings estimates moved higher compared to none lower for the full year. These revisions have boosted the company's consensus estimate, increasing from $41.36 to $43.17 in the past 60 days. Looking at the next fiscal year, 8 estimates have moved upwards while there have been no downward revisions. This shows a positive trend in earnings expectations and adds to the confidence in BLK's performance.Given these factors, it's no surprise that BLK is a #1 (Strong Buy) stock with a Momentum Score of B. If you're seeking a fresh investment with potential for near-term growth, BlackRock Finance should definitely be on your shortlist.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report.BlackRock, Inc. (BLK) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
