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Is JetPay an Incredible Momentum Stock? 3 Reasons Why JTPY Will Be Tough to Beat

Many investors like to look for momentum in stocks, but this can be very tough to define. There is great debate regarding which metrics are the best to focus on in this regard, and which are not really quality indicators of future performance. Fortunately, with our new style score system we have identified the key statistics to pay close attention to and thus which stocks might be the best for momentum investors in the near term.

This method discovered several great candidates for momentum-oriented investors, but today let's focus in on JetPay Corporation ( JTPY ) as this stock is looking especially impressive right now. And while there are numerous ways in which this company could be a great choice, we have highlighted three of the most vital reasons for JTPY's status as a solid momentum stock below:

Quarter EPS Estimate Change for JetPay Stock

While looking at price performance or full year earnings can be essential to understanding a momentum stock, you shouldn't forget about the current quarter EPS and the trend in estimates there. This change can signal how a stock might perform in the next earnings season which is obviously vital for momentum investors.

Right now, JTPY is seeing a nice trend over the past month when it comes to this quarter's earnings estimate projections. In the time frame, EPS estimates for JetPay have gone up by 8.3% compared to an industry average move of 0.6%, suggesting that not only is JTPY heading in the right direction, but it is seeing an increase relative to the industry too.

Longer Term Price Change for JetPay

While any stock can see a spike in price, it takes a real winner to consistently outperform the market. That is why looking at longer term price metrics-such as performance over the past three months or year-- and comparing these to an industry at large can be very useful.

And in the case of JTPY, the results are quite impressive. The company has beaten out the industry at large over the past 12 weeks by a margin of 7.1% to a loss of 10.3% while it has also outperformed when looking at the past year, putting up a gain of 66.8 %. Clearly, JTPY is riding a bit of a hot streak and is worth a closer look by investors.

JTPY Earnings Estimate Revisions Moving in the Right Direction

While the great momentum factors outlined in the preceding paragraphs might be enough for some investors, we should also take into account broad earnings estimate revision trends. A nice path here can really help to show us a promising stock, and we have actually been seeing that with JTPY as of late too.

Over the past two months, 1 earnings estimate have gone higher compared to 0 lower for the full year, while we are also seeing 1 upward revision versus 0 downward revisions for the next year time frame too. These revisions have helped to boost the consensus estimate as two months ago JTPY was expected to post a loss of 48 cents per share for the full year, though today it looks to have loss per share of 44 cents for the full year now, representing a solid increase which is something that should definitely be welcomed news to would-be investors.

Bottom Line

Given these factors, investors shouldn't be surprised to note that we have JTPY as a security with a Zacks Rank #2 (Buy) and a Momentum Score of 'A'. So if you are looking for a fresh pick that has potential to move in the right direction, definitely keep JTPY on your short list as this looks be a stock that is very well-positioned to soar in the near term.

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JETPAY CORP (JTPY): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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