Here's Why Stratasys (SSYS) is a Strong Momentum Stock

Stratasys (SSYS) is identified as a stock to watch by Zacks, holding a Zacks Rank of #3 (Hold) and a VGM Score of A. The stock is particularly appealing to momentum investors, evidenced by a Momentum Style Score of B and a 0.8% increase in share price over the past four weeks; furthermore, two analysts have increased their fiscal year 2025 earnings estimates in the last 60 days, raising the consensus estimate to $0.32 per share.

Analysis

Stratasys (SSYS), a manufacturer of 3D printing and rapid prototyping systems, currently holds a Zacks Rank #3 (Hold), yet exhibits several positive underlying indicators according to Zacks' analysis. The company has achieved a VGM Score of 'A' and a Momentum Style Score of 'B', signaling favorable attributes for investors focusing on these factors. This momentum is reflected in a 0.8% increase in its share price over the past four weeks. Analyst outlook for fiscal year 2025 is also improving, with two upward earnings estimate revisions in the last 60 days, pushing the Zacks Consensus Estimate up by $0.03 to $0.32 per share. Additionally, Stratasys has a notable history of outperforming expectations, with an average earnings surprise of 48.1%, suggesting resilience and potential for upside despite the neutral overall rating.

Key Decisions for Investors

• Investors should consider Stratasys's current Zacks #3 (Hold) status in conjunction with its strong 'A' VGM Score and 'B' Momentum Score, which indicate positive underlying trends.
• The recent 0.8% share price appreciation over four weeks and the upward revision of FY2025 earnings estimates to $0.32 per share, coupled with a 48.1% average earnings surprise, may appeal to momentum-focused investors.
• Continued monitoring of earnings estimate revisions and any change in the Zacks Rank is advisable to gauge shifts in the investment thesis for SSYS.