Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.

Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.

Below, we take a look at MGIC Investment (MTG), a company that currently holds a Momentum Style Score of B. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.

It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. MGIC Investment currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of A or B outperform the market over the following one-month period.

You can see the current list of Zacks #1 Rank Stocks here >>>

Set to Beat the Market?

In order to see if MTG is a promising momentum pick, let's examine some Momentum Style elements to see if this mortgage insurance company holds up.

Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.

For MTG, shares are up 1.36% over the past week while the Zacks Insurance - Multi line industry is up 0.71% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 5.25% compares favorably with the industry's 2.19% performance as well.

Considering longer term price metrics, like performance over the last three months or year, can be advantageous as well. Shares of MGIC Investment have increased 18.05% over the past quarter, and have gained 46.12% in the last year. In comparison, the S&P 500 has only moved 3.93% and 27.48%, respectively.