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Momentum investors look to ride bullish trends where buyers are in control. The strategy has been particularly rewarding in 2024 amid the market's strong showing thanks to a resilient economy.
And pairing the strategy with the Zacks Rank makes the approach even more potent. Three stocks – CyberArk Software (CYBR - Free Report) , LendingTree (TREE - Free Report) , and American Public Education (APEI - Free Report) – fit the strategy.
All three have seen positive price action recently, displaying relative strength compared to major indices. In addition, all three sport a favorable Zacks Rank, reflecting upward-trending earnings estimate revisions.
Below is a chart illustrating the performance of each over the last month, with the S&P 500 blended in as a benchmark.
Image Source: Zacks Investment Research
Let’s take a closer look at each.
CyberArk Software Sees Big Growth
CyberArk is a global leader in identity security. The company provides the most comprehensive security offering for any identity across business applications, distributed workforces, hybrid cloud environments, and throughout the DevOps lifecycle.
The earnings estimate revisions trend has been particularly bullish for its current fiscal year, up 67% to $2.04 per share. The company is enjoying a big growth phase, with the estimate suggesting an 80% year-over-year climb.
Image Source: Zacks Investment Research
It’s critical to note that shares trade at elevated valuation multiples, which reflects investors’ high-growth expectations. The current forward 12-month earnings multiple works out to 100.3X, whereas the forward 12-month price-to-sales ratio sits at 11.1X.
Shares have recently reclaimed the 50-day moving average, a positive development following several instances where the level acted as resistance. In fact, shares are just near all-time highs, with its favorable earnings outlook supporting further gains.
Image Source: Zacks Investment Research
LendingTree Shares Bounce Back
LendingTree, a current Zacks Rank #1 (Strong Buy), is the operator of LendingTree.com, the nation's leading online financial services marketplace. Analysts have raised their earnings expectations in a bullish way across all timeframes.
Image Source: Zacks Investment Research
Better-than-expected quarterly results have kept shares moving higher, enjoying post-earnings positivity following the company’s last two releases. LendingTree’s quarterly performance has overall been outstanding, beating our consensus EPS estimate by an average of 120% across its previous four releases.
The company raised its full-year 2024 outlook following its latest set of results, now forecasting annual sales in a band of $690 - $720 million (previously $650 - $690 million). Shares continue to climb higher, currently trading at 52-week highs.
American Public Education's Outlook Remains Bullish
American Public Education is an online provider of higher education focused on serving the military and public service communities. The stock sports a Zacks Rank #1 (Strong Buy), with analysts raising their expectations across nearly all timeframes.
Image Source: Zacks Investment Research
The company’s growth profile can’t be ignored, with consensus expectations alluding to 125% EPS growth on 4% higher sales in its current fiscal year. Improved efficiencies have aided the company’s profitability, with small margin expansion providing tailwinds.
Image Source: Zacks Investment Research
Shares aren’t expensive given the forecasted growth, with the current forward 12-month earnings multiple of 16.7X beneath the 19.6X five-year median. The current PEG ratio works out to 1.1X, reflecting that investors are paying a fair price for the growth.
Bottom Line
Momentum investing is all about riding bullish trends where buyers are in control.
And buyers have certainly been in control of all three stocks above – CyberArk Software (CYBR - Free Report) , LendingTree (TREE - Free Report) , and American Public Education (APEI - Free Report) – with shares of each soaring over the last month.
In addition to considerable momentum, all three sport a favorable Zacks Rank, reflecting upward trending estimate revisions among analysts.
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Ride Bullish Momentum with These 3 Stocks
Momentum investors look to ride bullish trends where buyers are in control. The strategy has been particularly rewarding in 2024 amid the market's strong showing thanks to a resilient economy.
And pairing the strategy with the Zacks Rank makes the approach even more potent. Three stocks – CyberArk Software (CYBR - Free Report) , LendingTree (TREE - Free Report) , and American Public Education (APEI - Free Report) – fit the strategy.
All three have seen positive price action recently, displaying relative strength compared to major indices. In addition, all three sport a favorable Zacks Rank, reflecting upward-trending earnings estimate revisions.
Below is a chart illustrating the performance of each over the last month, with the S&P 500 blended in as a benchmark.
Image Source: Zacks Investment Research
Let’s take a closer look at each.
CyberArk Software Sees Big Growth
CyberArk is a global leader in identity security. The company provides the most comprehensive security offering for any identity across business applications, distributed workforces, hybrid cloud environments, and throughout the DevOps lifecycle.
The earnings estimate revisions trend has been particularly bullish for its current fiscal year, up 67% to $2.04 per share. The company is enjoying a big growth phase, with the estimate suggesting an 80% year-over-year climb.
Image Source: Zacks Investment Research
It’s critical to note that shares trade at elevated valuation multiples, which reflects investors’ high-growth expectations. The current forward 12-month earnings multiple works out to 100.3X, whereas the forward 12-month price-to-sales ratio sits at 11.1X.
Shares have recently reclaimed the 50-day moving average, a positive development following several instances where the level acted as resistance. In fact, shares are just near all-time highs, with its favorable earnings outlook supporting further gains.
Image Source: Zacks Investment Research
LendingTree Shares Bounce Back
LendingTree, a current Zacks Rank #1 (Strong Buy), is the operator of LendingTree.com, the nation's leading online financial services marketplace. Analysts have raised their earnings expectations in a bullish way across all timeframes.
Image Source: Zacks Investment Research
Better-than-expected quarterly results have kept shares moving higher, enjoying post-earnings positivity following the company’s last two releases. LendingTree’s quarterly performance has overall been outstanding, beating our consensus EPS estimate by an average of 120% across its previous four releases.
The company raised its full-year 2024 outlook following its latest set of results, now forecasting annual sales in a band of $690 - $720 million (previously $650 - $690 million). Shares continue to climb higher, currently trading at 52-week highs.
American Public Education's Outlook Remains Bullish
American Public Education is an online provider of higher education focused on serving the military and public service communities. The stock sports a Zacks Rank #1 (Strong Buy), with analysts raising their expectations across nearly all timeframes.
Image Source: Zacks Investment Research
The company’s growth profile can’t be ignored, with consensus expectations alluding to 125% EPS growth on 4% higher sales in its current fiscal year. Improved efficiencies have aided the company’s profitability, with small margin expansion providing tailwinds.
Image Source: Zacks Investment Research
Shares aren’t expensive given the forecasted growth, with the current forward 12-month earnings multiple of 16.7X beneath the 19.6X five-year median. The current PEG ratio works out to 1.1X, reflecting that investors are paying a fair price for the growth.
Bottom Line
Momentum investing is all about riding bullish trends where buyers are in control.
And buyers have certainly been in control of all three stocks above – CyberArk Software (CYBR - Free Report) , LendingTree (TREE - Free Report) , and American Public Education (APEI - Free Report) – with shares of each soaring over the last month.
In addition to considerable momentum, all three sport a favorable Zacks Rank, reflecting upward trending estimate revisions among analysts.