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.

Investors should also take note of IPHI's average 20-day trading volume. In comparison, the S&P 500 has only moved -10.82% and 0%, respectively. Shares of Inphi have increased 28.28% over the past quarter, and have gained 123.81% in the last year. While any stock can see a spike in price, it takes a real winner to consistently outperform the market. Shares are looking quite well from a longer time frame too, as the monthly price change of 27.86% compares favorably with the industry's 20.24% performance as well. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.įor IPHI, shares are up 2.73% over the past week while the Zacks Semiconductor - Analog and Mixed industry is up 2.88% over the same time period. Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. In order to see if IPHI is a promising momentum pick, let's examine some Momentum Style elements to see if this chip designer holds up. You can see the current list of Zacks #1 Rank Stocks here > 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. Inphi currently has a Zacks Rank of #2 (Buy). 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. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.īelow, we take a look at Inphi, a company that currently holds a Momentum Style Score of A.

There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. While many investors like to look for momentum in stocks, this can be very tough to define. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades. In the 'long' context, investors will be essentially be 'buying high, but hoping to sell even higher.' With this methodology, taking advantage of trends in a stock's price is key once a stock establishes a course, it is more than likely to continue moving that way. Momentum investing revolves around the idea of following a stock's recent trend in either direction.

Iphi likely to beat zacks