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Keep an eye on the momentum at Babcock International

14th Sep by Ben Hobson

Anyone familiar with stock market screeners will know that shares in Babcock International (LON:BAB) have been in an uptrend in recent months, with strong relative price strength on a 1-month, 6-month and 12-month basis.

Finding stocks with the potential to break-out as their popularity grows is a strategy used by some of the world’s most successful traders.

Knowing what drives relative strength in share prices can help you find profitable momentum trades...

GET MORE DATA-DRIVEN INSIGHTS INTO LON:BAB »

How has the Babcock International (LON:BAB) share price performed?

In terms of relative price strength the stock has performed well against the market over the past year:

This is important because relative strength is a useful tool in the armoury of technical traders and investors. It’s an instant measure of how a stock has performed in comparison with a benchmark.

And while there are no certainties about which way a stock will move next, research shows that price trends like this can potentially persist.

Studies by leading experts on momentum show that stocks with the strongest price strength can sometimes keep up the pace for anywhere up to one year, as investors increasingly buy into them.

What does this mean for potential investors?

Babcock International is currently among the stocks with the strongest six-month and one-year relative price strength in the market. But momentum on its own is no guarantee of future returns. 

To get a better idea about whether this momentum will continue, it's worth doing some investigation yourself. Indeed, we've identified some areas of concern with Babcock International that you can find out about here.

Alternatively, if you'd like to find more shares with strong price momentum, you can find them on this Positive Momentum screen.

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Share Price
380.2p
Change Today
0.37%
Babcock International ( )

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