Momentum Investors Are Now Buying Shares Of Apple, Amazon And Netflix
There are two basic reasons that could drive a stock price higher; improving fundamentals and price momentum. The former typically comes first. The latter means that traders are buying a stock because they see it moving higher. Because if the stock price is going up, it must mean things are good with the company. There's a term for that; momentum buying. I have nothing against momentum! It's a wonderful thing to buy a stock on improving fundamentals followed by your fellow investors buying the heck out of it on momentum, sending the stock higher and higher.
Momentum investors are now buying shares of Apple, Amazon and Netflix
Zacks' proprietary data indicates that Apple Inc. is currently rated as a Zacks Rank 3 and we are expecting an inline return from the AAPL shares relative to the market in the next few months. In addition, Apple Inc. has a VGM Score of C (this is a weighted average of the individual Style Scores which allow you to focus on the stocks that best fit your personal trading style). Valuation metrics show that Apple Inc. may be fairly valued. Its Value Score of C indicates it would be a neutral pick for value investors. The financial health and growth prospects of AAPL, demonstrate its potential to perform inline with the market. It currently has a Growth Score of A. Recent price changes and earnings estimate revisions indicate this would not be a good stock for momentum investors with a Momentum Score of F.
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Because of the continued strong gains in Netflix shares it has been a very good stock for buy and hold investors, but the strong upward trend make it suitable for all types of investors. The stock is subject to the occasional correction, and these have presented traders with an excellent chance to buy at lowered levels and profit from the resumption of the upward trend in shares. In addition to looking for these reversal types of trades momentum investors have been able to take advantage of the consistent upward momentum in the stock.