Why Drilling Tools International Corp. (DTI) Stands Out as a Leading Momentum Stock for Sustained Growth

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No matter your level of experience or age, making the most of the stock market and investing with assurance are goals shared by all investors. Zacks Premium provides a variety of tools and resources to help you achieve both.

Subscribers gain access to daily updates on the Zacks Rank and Industry Rank, the exclusive Zacks #1 Rank List, comprehensive equity research reports, and advanced stock screening tools. These features are designed to empower you to make smarter, more confident investment decisions.

Additionally, Zacks Premium includes the valuable Zacks Style Scores.

Understanding Zacks Style Scores

Developed to complement the Zacks Rank, the Zacks Style Scores are unique metrics that evaluate stocks using three popular investment strategies. These scores help investors identify stocks with the highest potential to outperform the market in the coming month.

Each stock receives a grade—A, B, C, D, or F—based on its value, growth, and momentum attributes. Higher grades indicate a greater likelihood of outperformance, with A being the highest.

The Style Scores are divided into four main categories:

Value Score

Value investors seek quality stocks trading below their intrinsic worth. The Value Score analyzes metrics such as price-to-earnings, PEG, price-to-sales, and price-to-cash flow ratios to highlight undervalued opportunities.

Growth Score

For those focused on future expansion, the Growth Score examines a company's projected and historical earnings, sales, and cash flow to pinpoint stocks with strong, sustainable growth prospects.

Momentum Score

Momentum investors capitalize on trends in stock prices and earnings forecasts. The Momentum Score evaluates factors like recent price movements and changes in earnings estimates to identify optimal entry points.

VGM Score

The VGM Score combines value, growth, and momentum ratings into a single, weighted score. This comprehensive metric helps investors find stocks that excel across all three investment styles and is especially effective when used alongside the Zacks Rank.

How Style Scores Enhance the Zacks Rank

The Zacks Rank is a proprietary system that leverages changes in earnings estimates to guide investors toward building successful portfolios.

Historically, stocks rated #1 (Strong Buy) by Zacks have delivered an impressive average annual return of +23.93% since 1988—more than twice the performance of the S&P 500. However, with over 800 stocks rated as Strong Buy or Buy at any time, narrowing down the best choices can be daunting.

This is where the Style Scores prove invaluable.

To maximize your chances of success, focus on stocks with a Zacks Rank of #1 or #2 and a Style Score of A or B. If you are considering a stock with a #3 (Hold) rating, ensure it also has a top Style Score to enhance its upside potential.

Because Style Scores are designed to work in tandem with the Zacks Rank, it's important to consider the direction of earnings estimate revisions when selecting stocks.

For example, a stock with a #4 (Sell) or #5 (Strong Sell) rating—even if it boasts high Style Scores—likely faces declining earnings expectations and a higher risk of price drops.

Owning more stocks with a #1 or #2 Rank and high Style Scores increases your likelihood of strong returns.

Featured Stock: Drilling Tools International Corp. (DTI)

Drilling Tools International Corporation is a worldwide provider of oilfield services, specializing in the supply of downhole tools for horizontal and directional drilling. The company operates on a rental-based model, supported by its own manufacturing, inspection, and refurbishment capabilities, which enables efficient management and deployment of its extensive fleet of over 65,000 tools. These include drill collars, stabilizers, reamers, hole openers, and other equipment designed to enhance drilling efficiency throughout a well’s lifecycle. Clients typically rent these tools to suit varying geological and operational needs.

DTI currently holds a #1 (Strong Buy) Zacks Rank and a VGM Score of B.

Momentum-focused investors should pay attention to this Oils-Energy stock. DTI has achieved a Momentum Score of A, with its shares rising 5.5% in the past month.

In the last two months, one analyst has raised their earnings forecast for fiscal 2026, pushing the Zacks Consensus Estimate up by $0.04 to $0.19 per share. DTI has also delivered an average earnings surprise of +33.3%.

With its strong Zacks Rank and leading Momentum and VGM Scores, DTI deserves a spot on your watchlist.

Top Analyst’s “Best Pick to Double”

Out of thousands of stocks, five Zacks experts have each selected a favorite they believe could soar by 100% or more in the near future. Among these, Director of Research Sheraz Mian has identified one with the greatest potential for explosive growth.

This company targets millennial and Gen Z consumers and recently generated nearly $1 billion in quarterly revenue. A recent dip in its share price presents a timely opportunity for investors. While not every top pick achieves such results, this stock could outperform previous Zacks “Stocks Set to Double,” such as Nano-X Imaging, which surged over 129% in just over nine months.