Best Momentum Stocks to Buy for November 12th

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company to watch right now is New Gold (NGD). NGD is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 10.89, while its industry has an average P/E of 13.20. NGD's Forward P/E has been as high as 24.11 and as low as 10.29, with a median of 13.52, all within the past year.

NGD is also sporting a PEG ratio of 0.28. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. NGD's industry has an average PEG of 0.45 right now. NGD's PEG has been as high as 0.64 and as low as 0.20, with a median of 0.27, all within the past year.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. NGD has a P/S ratio of 2.32. This compares to its industry's average P/S of 2.86.

Finally, investors should note that NGD has a P/CF ratio of 7.85. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 14.04. Over the past 52 weeks, NGD's P/CF has been as high as 9.59 and as low as 4.42, with a median of 6.56.

These figures are just a handful of the metrics value investors tend to look at, but they help show that New Gold is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, NGD feels like a great value stock at the moment.

Zacks Investment Research

Here are five stocks added to the Zacks Rank #1 (Strong Buy) List today:

Grupo Financiero Galicia S.A. GGAL: This financial service holding company has seen the Zacks Consensus Estimate for its current year earnings increasing 8.4% over the last 60 days.

Grupo Financiero Galicia S.A. Price and Consensus

Grupo Financiero Galicia S.A. price-consensus-chart | Grupo Financiero Galicia S.A. Quote

Gold Fields Limited GFI: This gold mining company has seen the Zacks Consensus Estimate for its current year earnings increasing 9.8% over the last 60 days.

Gold Fields Limited Price and Consensus

Gold Fields Limited price-consensus-chart | Gold Fields Limited Quote

Fulcrum Therapeutics, Inc. FULC: This clinical-stage biopharmaceutical company has seen the Zacks Consensus Estimate for its current year earnings increasing 39.1% over the last 60 days.

Fulcrum Therapeutics, Inc. Price and Consensus

Fulcrum Therapeutics, Inc. price-consensus-chart | Fulcrum Therapeutics, Inc. Quote

Deckers Outdoor Corporation DECK: This footwear and apparel company has seen the Zacks Consensus Estimate for its current year earnings increasing 4% over the last 60 days.

Deckers Outdoor Corporation Price and Consensus

Deckers Outdoor Corporation price-consensus-chart | Deckers Outdoor Corporation Quote

New Gold Inc. NGD: This gold mining company has seen the Zacks Consensus Estimate for its current year earnings increasing 30.8% over the last 60 days.

New Gold Inc. Price and Consensus

New Gold Inc. price-consensus-chart | New Gold Inc. Quote

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Zacks Investment Research

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company to watch right now is Iamgold (IAG). IAG is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 7.83, while its industry has an average P/E of 14.18. Over the last 12 months, IAG's Forward P/E has been as high as 140.56 and as low as 6.97, with a median of 18.11.

We also note that IAG holds a PEG ratio of 0.29. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. IAG's PEG compares to its industry's average PEG of 0.48. Over the last 12 months, IAG's PEG has been as high as 4.23 and as low as 0.29, with a median of 0.55.

Investors should also recognize that IAG has a P/B ratio of 1.21. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.82. Within the past 52 weeks, IAG's P/B has been as high as 1.30 and as low as 0.45, with a median of 0.78.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. IAG has a P/S ratio of 2.54. This compares to its industry's average P/S of 3.18.

Finally, investors should note that IAG has a P/CF ratio of 8.04. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. IAG's current P/CF looks attractive when compared to its industry's average P/CF of 17.64. IAG's P/CF has been as high as 8.69 and as low as 3.42, with a median of 4.79, all within the past year.

If you're looking for another solid Mining - Gold value stock, take a look at New Gold (NGD). NGD is a # 2 (Buy) stock with a Value score of A.

New Gold is trading at a forward earnings multiple of 12.02 at the moment, with a PEG ratio of 0.28. This compares to its industry's average P/E of 14.18 and average PEG ratio of 0.48.

Over the last 12 months, NGD's P/E has been as high as 24.11, as low as 10.29, with a median of 13.52, and its PEG ratio has been as high as 0.64, as low as 0.20, with a median of 0.27.

New Gold also has a P/B ratio of 1.73 compared to its industry's price-to-book ratio of 1.82. Over the past year, its P/B ratio has been as high as 2.06, as low as 0.88, with a median of 1.43.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Iamgold and New Gold are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, IAG and NGD feels like a great value stock at the moment.

Zacks Investment Research

Investors interested in Basic Materials stocks should always be looking to find the best-performing companies in the group. Harmony Gold (HMY) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out.

Harmony Gold is a member of the Basic Materials sector. This group includes 235 individual stocks and currently holds a Zacks Sector Rank of #11. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Harmony Gold is currently sporting a Zacks Rank of #1 (Strong Buy).

Within the past quarter, the Zacks Consensus Estimate for HMY's full-year earnings has moved 7.9% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the most recent data, HMY has returned 76.3% so far this year. Meanwhile, the Basic Materials sector has returned an average of -0.8% on a year-to-date basis. This means that Harmony Gold is performing better than its sector in terms of year-to-date returns.

Another stock in the Basic Materials sector, New Gold (NGD), has outperformed the sector so far this year. The stock's year-to-date return is 88.4%.

Over the past three months, New Gold's consensus EPS estimate for the current year has increased 7.8%. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Harmony Gold belongs to the Mining - Gold industry, which includes 38 individual stocks and currently sits at #11 in the Zacks Industry Rank. On average, stocks in this group have gained 25.5% this year, meaning that HMY is performing better in terms of year-to-date returns. New Gold is also part of the same industry.

Investors with an interest in Basic Materials stocks should continue to track Harmony Gold and New Gold. These stocks will be looking to continue their solid performance.

Zacks Investment Research