Why This 1 Momentum Stock Could Be a Great Addition to Your Portfolio

  • June 11, 2025

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.

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.

NMI Holdings (NMIH)

Headquartered in Emeryville, CA, NMI Holdings was incorporated in May 2011 and began start-up operations in 2012. NMI Holdings wrote its first MI policy in 2013.

NMIH is a Zacks Rank #3 (Hold) stock, with a Momentum Style Score of B and VGM Score of A. Shares are down 0.7% over the past one week and up 3.7% over the past four weeks. NMIH has gained 24% in the last one-year period as well. Looking at trading volume, an average of 527,912.38 shares exchanged hands over the last 20 trading days.

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A company's earnings performance is important for momentum investors as well. For fiscal 2025, four analysts revised their earnings estimate higher in the last 60 days for NMIH, while the Zacks Consensus Estimate has increased $0.25 to $4.86 per share. NMIH also boasts an average earnings surprise of 8.2%.

NMIH 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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NMI Holdings Inc (NMIH) : Free Stock Analysis Report

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

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