Are You Looking for a Top Momentum Pick? Why Stantec (STN) is a Great Choice

Stantec (STN) is identified as a strong momentum pick, holding a Zacks Rank #1 (Strong Buy) and a Momentum Style Score of B. STN's price has increased 28.63% over the past quarter and 27.17% in the last year, significantly outperforming the S&P 500's 3.59% and 14.21% gains, respectively, with a 20-day average trading volume of 204,088 shares. Positive earnings estimate revisions, with the consensus estimate rising from $3.62 to $3.86 in the past 60 days, further support the bullish outlook.

Analysis

Stantec (STN) is highlighted as a compelling momentum investment, currently holding a Zacks Rank of #1 (Strong Buy) and a Momentum Style Score of B. The company's stock performance has notably outpaced both its industry and the broader market. Over the past week, STN shares increased by 1.09%, while the Zacks Consulting Services industry remained flat. More impressively, STN's monthly price change registered a 15.69% gain, significantly ahead of the industry's 1.83% rise. On a longer horizon, STN's shares have appreciated 28.63% in the past quarter and 27.17% over the last year, substantially outperforming the S&P 500's gains of 3.59% and 14.21% for the same periods, respectively. This price momentum is supported by an average 20-day trading volume of 204,088 shares. Furthermore, the positive outlook is reinforced by upward revisions in earnings estimates. For the current full year, six earnings estimates have been revised higher over the past two months with no downward revisions, causing the consensus estimate to increase from $3.62 to $3.86. A similar trend of six upward revisions and no downward revisions is noted for the next fiscal year, underscoring strengthening analyst sentiment.

Key Decisions for Investors

• Given STN's Strong Buy rating, robust price momentum, and positive earnings estimate revisions, investors employing a momentum strategy may find STN a candidate for further evaluation.
• Investors should monitor for continued strength in price trends and sustained upward earnings estimate revisions, as these are key underpinnings of the current bullish thesis.
• The significant outperformance relative to its industry and the S&P 500 suggests STN could be considered for inclusion in portfolios seeking exposure to growth within the engineering and consulting services sector, subject to individual risk tolerance.