Why This 1 Momentum Stock Could Be a Great Addition to Your Portfolio

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For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.

Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.

Is This 1 Momentum Stock a Screaming Buy Right Now?

Momentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.

TransUnion (TRU)

Headquartered in Chicago, IL, TransUnion is one of the leading global providers of risk and information solutions to businesses and consumers. The company provides consumer reports, risk scores, analytical services and decisioning capabilities to businesses. What sets TransUnion apart are its distinctive and comprehensive datasets, next-generation technology and its analytics and decision-making capabilities — which enable it to deliver insights across the complete consumer lifecycle. TransUnion boasts rich domain proficiency across a wide range of industry verticals, including insurance, healthcare and financial services. It also caters to verticals like wireless, real estate and general commercial/business information. Possession of both nationwide consumer credit data and comprehensive, diverse public records data, enables the company better predict behaviors, assess risk and address a broader set of business issues for its customers.

TRU is a Zacks Rank #2 (Buy) stock, with a Momentum Style Score of B and VGM Score of B. Shares are down 0.3% over the past one week and up 1.8% over the past four weeks. TRU has gained 141.5% in the last one-year period as well. Looking at trading volume, an average of 1,337,060.25 shares exchanged hands over the last 20 trading days.

A company's earnings performance is important for momentum investors as well. For fiscal 2024, five analysts revised their earnings estimate higher in the last 60 days for TRU, while the Zacks Consensus Estimate has increased $0.01 to $3.89 per share. TRU also boasts an average earnings surprise of 5.8%.

TRU should be on investors' short list because of its impressive earnings fundamentals, a good Zacks Rank, and strong Momentum and VGM Style Scores.