Why This 1 Momentum Stock Could Be a Great Addition to Your Portfolio

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.

Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.

Is This 1 Momentum Stock a Screaming Buy Right Now?

For momentum investors, upward or downward trends in a stock's price or earnings outlook take precedent, so they'll want to zero in on the Momentum Style Score. This Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.

AES (AES)

Arlington, VA-based The AES Corporation, incorporated in 1981, is a global power company. The company’s businesses are spread across four continents in 14 countries. The company has four Strategic Business Units (SBUs) located in the United States and other regions across the globe. At the end of 2021, the company had a customer base of 2.5 million. AES Corp. currently owns and/or operates a generation portfolio of 31,459 MW, including generation from its integrated utility, IPL.

AES sits at a Zacks Rank #3 (Hold), holds a Momentum Style Score of A, and has a VGM Score of B. The stock is up 5.5% and up 9.6% over the past one-week and four-week period, respectively, and AES has gained 15.6% in the last one-year period as well. Additionally, an average of 4,875,451 shares were traded over the last 20 trading sessions.

Momentum investors also pay close attention to a company's earnings. For AES, one analyst revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0 to $1.61 per share for 2022. AES boasts an average earnings surprise of 4.2%.

AES should be on investors' short list because of its impressive earnings fundamentals, a good Zacks Rank, and strong Momentum and VGM Style Scores.


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