All posts from Zacks
Zacks in Our Research. Your Success.,

3 Reasons Why The York Water (YORW) is a Great Momentum Stock

Many investors like to look for momentum in stocks, but this can be very tough to define. There is great debate regarding which metrics are the best to focus on in this regard, and which are not really quality indicators of future performance. Fortunately, with our new style score systemwe have identified the key statistics to pay close attention to and thus which stocks might be the best for momentum investors in the near term.

This method discovered several great candidates for momentum-oriented investors, but today let’s focus in on The York Water Company YORW as this stock is looking especially impressive right now. And while there are numerous ways in which this company could be a great choice, we have highlighted three of the most vital reasons for YORW’s status as a solid momentum stock below:

Longer Term Price Change for The York water

While any stock can see a spike in price, it takes a real winner to consistently outperform the market. That is why looking at longer term price metrics—such as performance over the past three months or year-- and comparing these to an industry at large can be very useful.

And in the case of YORW, the results are quite impressive. The company has beaten out the industry at large over the past 12 weeks by a margin of 24% to 9.5% while it has also outperformed when looking at the past year, putting up a gain of 25.8%. Clearly, YORW is riding a bit of a hot streak and is worth a closer look by investors. 

Fiscal Year EPS Estimate Changefor YORW

In addition to price performance, it is also important to take a look at earnings estimate changes for the full year. This can show if YORW is poised to make a run based on fundamentals, or if the company is simply moving on speculation.

Over the past month, the full year earnings estimate for YORW has risen by 1.5%. On its own this is impressive, but consider that it also beats the industry average of 0.4% too. The trend is undeniably in The York Water’s favor right now, and it suggests that the momentum might be long lasting for this stock. 

YORW Earnings Estimate Revisions Moving in the Right Direction

While the great momentum factors outlined in the preceding paragraphs might be enough for some investors, we should also take into account broad earnings estimate revision trends. A nice path here can really help to show us a promising stock, and we have actually been seeing that with YORW as of late too.

Over the past two months, 1earning estimate have gone higher compared to none lower for the full year, while we are also seeing that 1estimate have moved upwards with no downward revisions for the next year time frame too. These revisions have helped to boost the consensus estimate as two months ago YORW was expected to post earnings of 99 cents/share for the full year, though today it looks to have EPS of $1.00 for the full year now, representing a solid increase which is something that should definitely be welcomed news to would-be investors.

Bottom Line

Given these factors, investors shouldn’t be surprised to note that we have YORW as a security with a Zacks Rank #1 (Strong Buy) and a Momentum Score of ‘B’.So if you are looking for a fresh pick that has potential to move in the right direction, definitely keep YORW on your short list as this looks be a stock that is very well-positioned to soar in the near term.

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 >>

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
YORK WATER CO (YORW): Free Stock Analysis Report
To read this article on click here.
Zacks Investment Research