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 system we 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 on Intra-Cellular Therapies, Inc. (NASDAQ:ITCI) 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 ITCI’s status as a solid momentum stock below:
Short Term Price Change for Intra-Cellular Therapies
A great place to look for finding momentum stocks is by inspecting short term price activity. This can help to reflect the current interest in a stock and if buyers or sellers have the upper hand right now. It is especially useful to compare it to the industry as this can help investors pinpoint the top companies in a particular area.
With a one week price change of 0.2% compared to an industry average of 0.04%, ITCI is certainly well-positioned in this regard. The stock is also looking quite well from a longer time frame too, as the four week price change compares favorably with the industry at large.
Quarter EPS Estimate Change for Intra-Cellular Therapies Stock
While looking at price performance or full year earnings can be essential to understanding a momentum stock, you shouldn’t forget about the current quarter EPS and the trend in estimates there. This change can signal how a stock might perform in the next earnings season, which is obviously vital for momentum investors.
Right now, ITCI is seeing a nice trend over the past month when it comes to this quarter’s earnings estimate projections. In the time frame, EPS estimates for Intra-Cellular Therapies have gone up by 31.7% compared to a flat industry average move, suggesting that not only is ITCI heading in the right direction, but it is seeing an increase relative to the industry too.
ITCI 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 ITCI as of late.
Intra-Cellular Therapies Inc. Price and Consensus
Intra-Cellular Therapies Inc. Price and Consensus | Intra-Cellular Therapies Inc. Quote
Over the past two months, five earnings estimates have gone higher compared to none lower for the full year, while we are also seeing that four estimates have move upwards with no downward revision for the next year time frame. These revisions have helped to boost the consensus estimate, as two months ago, ITCI was expected to post loss of $2.98 per share for the full year, though today it is expected to post a loss of $2.19 for the full year, representing a solid increase which is something that should be welcome news to would-be investors.
Bottom Line
Given these factors, investors shouldn’t be surprised to note that we have ITCI as a security with a Zacks Rank #2 (Buy) and a Momentum Score of B.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
So if you are looking for a fresh pick that has potential to move in the right direction, definitely keep ITCI on your short list as this looks be a stock that is very well-positioned to soar in the near term.
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Intra-Cellular Therapies Inc. (ITCI): Free Stock Analysis Report
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