Here's Why USA Compression Partners (USAC) is a Strong Momentum Stock
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.
USA Compression Partners (USAC)
Founded in 1998, USA Compression Partners, LP is one of the largest independent natural gas compression services providers across the United States in terms of fleet horsepower. Structured as a master limited partnership ("MLP") with the Energy Transfer family owning approximately 48%, it primarily focuses on large-horsepower applications (greater than 1,000 horsepower) in a number of areas including the Permian/Delaware, Marcellus/Utica, Mid-Continent/SCOOP/STACK, South Texas, East Texas, Louisiana, Rockies. The firm is also involved in engineering, design, operation, service, and repair of compressor units.
USAC is a Zacks Rank #3 (Hold) stock, with a Momentum Style Score of B and VGM Score of A. Shares are up 1.4% over the past one week and up 4.6% over the past four weeks. USAC has gained 3% in the last one-year period as well. Looking at trading volume, an average of 217,203.45 shares exchanged hands over the last 20 trading days.
Momentum investors also pay close attention to a company's earnings. For USAC, two analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.05 to $0.82 per share for 2024. USAC boasts an average earnings surprise of 5.5%.
USAC 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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USA Compression Partners, LP (USAC) : Free Stock Analysis Report