Oxford Industries (OXM), up 5.84% in one week: What you should know
Momentum investing is based on the idea that a stock’s current trend can be followed in any direction. Investors will be “buying high but hoping to sell higher” in the “long” context. This strategy allows you to profit from trends in a stock’s price. A stock that has established a course is more likely to stay on the same path. It is important that a stock follows a consistent path to make it profitable and timely.
It is not easy to identify momentum, even though it is a well-known stock characteristic. The debate surrounding the best and worst metrics to concentrate on is long. However, the Zacks Momentum Style Score (part of the Zacks Style Scores) helps us address this issue.
We take a look below at Oxford Industries (OXM)The Momentum Style score currently for, is B. We also discuss the main drivers of Momentum Style Score like price changes and earnings estimate revisions.
Style Scores can be used as a complement for the Zacks Rank. This stock rating system has a proven track record of outperforming. Oxford Industries currently has a Zacks Rank 2 (Buy). Our research shows that stocks rated Zacks #1 (Strong Buy), #2 (Buy), and Style Scores of B or C outperform the market over a one-month period.
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To see if OXM has the potential to be a momentum pick, let’s look at some Momentum Style elements. Let’s check if OXM owns the Tommy Bahama clothing lines, Lilly Pulitzer, and Southern Tide clothing line.
It is possible to determine if a stock has momentum by looking at its short-term price activity. This can indicate both current interest and whether sellers or buyers have the upper hand at the time. Investors can also benefit from comparing a security with its industry. This will help them identify the best companies in that particular sector.
OXM shares are up 5.84% during the week. Zacks Textile Apparel is up 5.68% in the same time frame. As the monthly price changes of 5.53% and 9.1% compare favorably to the shares, the outlook for shares is positive.
It can also be helpful to consider longer-term price metrics like the performance over three months and one year. The shares of Oxford Industries rose 16.29% over the past quarter and have increased 9.49% over the last year. On the other hand, the S&P 500 has only moved 11.88% and -14.35%, respectively.
Investors should also be aware of OXM’s average daily trading volume over the past 20 days. Volume can be useful in many ways. OXM’s 20-day average trading volume establishes a good baseline price-to volume ratio. A rising stock with an above average volume sign is bullish, while a falling stock with an above average volume sign is typically bearish. OXM has been trading at 151,932 shares per day for the past 20 days.
Outlook on Earnings
The Zacks Momentum Style Score measures many things, including revisions to estimates and the stock’s price movement. Investors should be aware that earnings estimates can also have a significant impact on the Zacks Rank. This means that a good path can be quite promising. This is something we have noticed recently with OXM.
The earnings estimates for 3 companies have moved higher in the last two months than the total year. These revisions have helped OXM increase its consensus estimate by $10.48 to $10.74 over the past 60 days. The next fiscal year has 3 upwardly revised estimates, while no downward revisions have occurred in the same period.
Bottom Line
OXM is a #2 Buy stock with a Momentum Score (B) taking into consideration all these factors. Oxford Industries is a great stock to consider if you are looking for a new pick that will rise in the short-term.
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Oxford Industries, Inc. (OXM) : Free Stock Analysis Report