Plexus (PLXS) Is Up 7.56% in One Week: What You Should Know

Below, we take a look at Plexus (PLXS), a company that currently holds a Momentum Style Score of B. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.

It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Plexus currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.

You can see the current list of Zacks #1 Rank Stocks here >>>

Set to Beat the Market?

Let's discuss some of the components of the Momentum Style Score for PLXS that show why this electronic manufacturing services company shows promise as a solid momentum pick.

A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area.

For PLXS, shares are up 7.56% over the past week while the Zacks Electronics - Manufacturing Services industry is up 7.56% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 7.02% compares favorably with the industry's 1.4% performance as well.

While any stock can see a spike in price, it takes a real winner to consistently outperform the market. Shares of Plexus have increased 5.26% over the past quarter, and have gained 100.35% in the last year. On the other hand, the S&P 500 has only moved 4.93% and 21.47%, respectively.

Investors should also pay attention to PLXS's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. PLXS is currently averaging 320,698 shares for the last 20 days.

Earnings Outlook

The Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. Investors should note that earnings estimates are also significant to the Zacks Rank, and a nice path here can be promising. We have recently been noticing this with PLXS.

Over the past two months, 2 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost PLXS's consensus estimate, increasing from $8.18 to $8.51 in the past 60 days. Looking at the next fiscal year, 2 estimates have moved upwards while there have been no downward revisions in the same time period.

Bottom Line

Given these factors, it shouldn't be surprising that PLXS is a #1 (Strong Buy) stock and boasts a Momentum Score of B. If you're looking for a fresh pick that's set to soar in the near-term, make sure to keep Plexus on your short list.

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This article originally published on Zacks Investment Research (zacks.com).

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