Why Sanderson Farms (SAFM) is a Top Momentum Stock for the Long-Term

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

While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.

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.

Sanderson Farms (SAFM)

Based in Mississippi, Sanderson Farms, Inc. is a poultry processing company that produces, processes, markets and distributes fresh and frozen chicken products. In addition to this, the company sells ice pack, chill pack, bulk pack and frozen chicken, in whole, cut-up and boneless form, primarily under the Sanderson Farms brand name to retailers, distributors, and casual dining operators in the southeastern, southwestern, northeastern and western United States, and to customers who resell frozen chicken into export markets.

SAFM is a Zacks Rank #1 (Strong Buy) stock, with a Momentum Style Score of B and VGM Score of A. Shares are down 0.4% over the past one week and up 7.5% over the past four weeks. SAFM has gained 16.3% in the last one-year period as well. Looking at trading volume, an average of 399,141.25 shares exchanged hands over the last 20 trading days.

Momentum investors also pay close attention to a company's earnings. For SAFM, one analyst revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $17.24 to $48.02 per share for 2022. SAFM boasts an average earnings surprise of 60.5%.

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

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