Many investors like to look for momentum in stocks, but this can be very tough to define. There is great debate regarding which metrics are the best to focus on in this regard, and which are not really quality indicators of future performance. Fortunately, with our new style score system we have identified the key statistics to pay close attention to and thus which stocks might be the best for momentum investors in the near term.

This method discovered several great candidates for momentum-oriented investors, but today let’s focus on Scotiabank (BNS Quick QuoteBNS - Free Report) as this stock is looking especially impressive right now. And while there are numerous ways in which this company could be a great choice, we have highlighted three of the most vital reasons for BNS’s status as a solid momentum stock below:

Short Term Price Change for Scotiabank

A great place to look for finding momentum stocks is by inspecting short term price activity. This can help to reflect the current interest in a stock and if buyers or sellers have the upper hand right now. It is especially useful to compare it to the industry as this can help investors pinpoint the top companies in a particular area.

With a one week price change of 0.01% compared to an industry average of 0%, BNS is certainly well-positioned in this regard. The stock is also looking quite well from a longer time frame too, as the four week price change compares favorably with the industry at large.

Longer Term Price Change for Scotiabank

While any stock can see a spike in price, it takes a real winner to consistently outperform the market. That is why looking at longer term price metrics—such as performance over the past three months or year-- and comparing these to an industry at large can be very useful.

And in the case of BNS, the results are quite impressive. The company has beaten the industry at large over the past 12 weeks by a margin of 7.2% to 5.5%, while it has also outperformed when looking at the past year, putting up a gain of 15.3%. Clearly, BNS is riding a bit of a hot streak and is worth a closer look by investors.  

BNS Earnings Estimate Revisions Moving in the Right Direction

While the great momentum factors outlined in the preceding paragraphs might be enough for some investors, we should also take into account broad earnings estimate revision trends. A nice path here can really help to show us a promising stock, and we have actually been seeing that with BNS as of late.

Over the past two months, two earnings estimates have gone higher compared to none lower for the full year, while we are also seeing that two estimate has move upwards with no downward revision for the next year time frame. These revisions have helped to boost the consensus estimate, as two months ago, BNS was expected to post earnings of $4.84 per share for the full year, though today it looks to have EPS of $5.24 for the full year, representing a solid increase which is something that should be welcome news to would-be investors.

Bottom Line

Given these factors, investors shouldn’t be surprised to note that we have BNS as a security with a Zacks Rank #2 (Buy) and a Momentum Score of B.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

So if you are looking for a fresh pick that has potential to move in the right direction, definitely keep BNS on your short list as this looks be a stock that is very well-positioned to soar in the near term.

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