Why One Momentum Stock Could Be a Great Portfolio Addition

Whether you're a seasoned investor or just starting out, you should aim to maximize your returns by investing confidently in the stock market.

The use of a tried-and-true process to direct purchase and sale choices is also common among investors. Use the Zacks Style Scores—indicators that rank companies according to three popular investing types: growth, momentum, and value—to identify winning stocks based on your preferred investing approach. Would You Immediately Put Your Money Into This One Momentum Stock?

Focusing on the Momentum Style Score is essential for momentum investors, who place a premium on rising or falling trends in stock prices and earnings estimates. Using metrics like the percentage change in earnings predictions from month to month and the one-week price movement, this Score helps determine whether it is a suitable time to build a stake in a stock.

Carrier International (CARR) Advanced HVAC, refrigeration, air conditioning, fire, security, and building automation systems are offered by Carrier Global, a company established in Palm Beach Gardens, FL. April 2020 was the last month for the company's Initial Public Offering ("IPO").

With a Momentum Style Score of B and a VGM Score of B, CARR is currently ranked #3 (Hold) by Zacks. In the previous week, the stock has risen 0.5%, and in the last four weeks, it has risen 6.2%. Carrier Global has also gained 29.5% in the last year. In addition, the average number of shares traded during the past 20 trading sessions was 6,358,841.

Positive earnings are just as important as price movements for momentum investors. Three analysts have raised their profit prediction for fiscal 2024 in the past 60 days.

A share price of $2.82 now represents a $0 rise to the Zacks Consensus Estimate. The average earnings surprise for CARR is 7%.

Investors may want to consider CARR for their portfolios due to its outstanding earnings growth, solid Zacks Rank, and top-tier Momentum and VGM Style Scores.

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