Genco Shipping & Trading (GNK) is a Great Momentum Stock: Should You Buy?


Momentum investing revolves around the idea of ​​following the latest trend in a stock in either direction. In the "long" context, investors will essentially "buy high but hope to sell higher". With this method it is crucial to take advantage of the development of the share price. Once a stock has set a price, it is more than likely to keep moving that way. The goal is for a stock to lead to timely and profitable deals once it has hit a solid path.

While momentum is a popular characteristic of stocks, it can be difficult to define. The debate about the best and worst metrics to focus on is long, but the Zacks Momentum Style Score, which is part of the Zacks Style Score, helps us solve this problem.

Below we take a look at Genco Shipping & Trading (GNK), which currently has a Momentum Style Score of B. We also discuss some of the main drivers of the Momentum Style Score, such as price changes and revisions to earnings estimates.

It's also important to note that Style Scores work as a complement to Zacks Rank, our stock valuation system that has an impressive track record of outperforming. Genco Shipping & Trading currently has a Zacks rank 1 (Strong Buy). Our research shows that stocks rated Zack's # 1 (strong buy) and # 2 (buy) and style scores of A or B outperformed the market for the following month.

The current list of Zacks # 1 Rank Stocks can be found here >>>

Ready to Beat the Market?

Let's discuss some of the components of the Momentum Style Score for GNK that show why this dry cargo van looks promising as a solid Momentum choice.

A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and whether buyers or sellers currently have the upper hand. It is also helpful to compare a security with its industry. This can show investors the best companies in a particular field.

For GNK, stocks were up 19.15% over the past week, while the Zacks Transportation - Shipping industry was up 1.61% over the same period. Even over a longer period of time, stocks look pretty good as the monthly price change of 45.65% is also cheap compared to the industry's performance of 3.94%.

The story goes on

While any stock can surge in price, it takes a real winner to consistently beat the market. For this reason, it can also be useful to look at longer-term price metrics such as performance over the last three months or last year. Genco Shipping & Trading stocks are up 86.02% in the most recent quarter and 155.57% in the last year. In comparison, the S&P 500 only moved 13.84% and 45.28%, respectively.

Investors should also look out for GNK's average 20-day trading volume. Volume is a useful point in many ways, and the 20-day average sets a good price-volume basis. A rising stock with above-average volume is generally a bullish sign, while a bearish stock with above-average volume is typically bearish. GNK has an average of 624,199 shares in the last 20 days.

Earnings outlook

In addition to price changes, the Zacks Momentum Style Score also takes into account trends when revising estimates. Please note that estimated revision trends remain at the core of Zacks Rank. Having a nice path here can help be promising, and we saw that recently at GNK.

In the past two months, earnings estimates are 2 higher than no lower for the full year. These revisions helped improve GNK's consensus estimate, rising from $ 0.88 to $ 1.43 in the past 60 days. Looking to the next fiscal year, 1 estimate has moved up while no downward revisions have been made over the same period.

Bottom line

With all these elements in mind, it should come as no surprise that GNK is # 1 (Strong Buy) with a B Momentum Score. Make sure Genco Shipping & Trading stays on your shortlist.


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