Are You Looking for a Top Momentum Pick? Why Alnylam Pharmaceuticals (ALNY) 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.
Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at Alnylam Pharmaceuticals (ALNY), 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. Alnylam Pharmaceuticals 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 >>>
In order to see if ALNY is a promising momentum pick, let’s examine some Momentum Style elements to see if this RNA interference drug developer holds up.
A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.
For ALNY, shares are up 0.9% over the past week while the Zacks Medical – Biomedical and Genetics industry is down 0.34% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 1.76% compares favorably with the industry’s 6.92% performance as well.
While any stock can see a spike in price, it takes a real winner to consistently outperform the market. Shares of Alnylam Pharmaceuticals have increased 44.29% over the past quarter, and have gained 63.33% in the last year. In comparison, the S&P 500 has only moved 6.33% and 14.66%, respectively.
