Are You Looking for a Top Momentum Pick? Why Regions Financial (RF) is a Great Choice

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.Below, we take a look at Regions Financial (RF), which currently has a Momentum Style Score of A. We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions.It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Regions Financial currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.You can see the current list of Zacks #1 Rank Stocks here >>> Set to Beat the Market?Let's discuss some of the components of the Momentum Style Score for RF that show why this holding company for Regions Bank shows promise as a solid momentum pick.Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area.For RF, shares are up 0.48% over the past week while the Zacks Banks - Southeast industry is down 0.37% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 4.71% compares favorably with the industry's 2.98% performance as well.While any stock can see a spike in price, it takes a real winner to consistently outperform the market. Over the past quarter, shares of Regions Financial have risen 18.82%, and are up 20.63% in the last year. On the other hand, the S&P 500 has only moved 11.05% and 18.96%, respectively.Investors should also take note of RF's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now RF is averaging 17,325,500 shares for the last 20 days..Earnings OutlookThe Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. Investors should note that earnings estimates are also significant to the Zacks Rank, and a nice path here can be promising. We have recently been noticing this with RF.Over the past two months, 12 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost RF's consensus estimate, increasing from $2.26 to $2.33 in the past 60 days. Looking at the next fiscal year, 12 estimates have moved upwards while there have been no downward revisions in the same time period.Bottom LineTaking into account all of these elements, it should come as no surprise that RF is a #2 (Buy) stock with a Momentum Score of A. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Regions Financial on your short list.3 Stocks Poised to Lead the AI Software RaceThe software market is expected to witness a remarkable growth trajectory worldwide. Advancements in AI, increased demand for cybersecurity, and the rapid expansion of automation and robotics is offering investors an opportunity to unlock significant growth right now.Which software stocks will soar? Which will fizzle out? Find out in our urgent special report, Software is Eating the World. It examines where the software industry stands now and reveals three favorite software stocks to ownAccess the report free today >>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 Regions Financial Corporation (RF): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks