Betterware de Mexico SAPI de C (BWMX) closed the last trading session at $18.41, gaining 12.7% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $23.33 indicates a 26.7% upside potential.The average comprises three short-term price targets ranging from a low of $20.00 to a high of $30.00, with a standard deviation of $5.77. While the lowest estimate indicates an increase of 8.6% from ...

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than traditional strategies of buying low and waiting for recovery, which can lead to quicker profits [1] Group 1: Momentum Investing Strategy - Momentum investors often face challenges in determining the right entry point for fast-moving stocks, as these stocks can lose momentum if their growth potential does not justify their high valuations [2] - Investing in bargain stocks that have recently shown price momentum can be a safer strategy, utilizing tools like the Zacks Momentum Style Score to identify promising stocks [3] Group 2: Company Analysis - Betterware de Mexico SAPI de C (BWMX) - BWMX has demonstrated significant price momentum with a four-week price change of 14.5%, indicating growing investor interest [4] - The stock has gained 34.7% over the past 12 weeks, with a beta of 1.25, suggesting it moves 25% more than the market in either direction [5] - BWMX holds a Momentum Score of A, indicating a favorable time to invest based on its momentum characteristics [6] Group 3: Earnings and Valuation - An upward trend in earnings estimate revisions has contributed to BWMX achieving a Zacks Rank 1 (Strong Buy), which is associated with strong momentum effects [7] - BWMX is trading at a Price-to-Sales ratio of 0.96, indicating it is relatively undervalued, as investors pay only 96 cents for each dollar of sales [7] Group 4: Additional Investment Opportunities - Besides BWMX, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, suggesting further investment opportunities [8] - The Zacks Premium Screens offer over 45 different strategies tailored to various investing styles, providing additional avenues for stock selection [9]

Core Insights - U.S. stock markets have started 2026 positively, with all three major indexes in positive territory and a strong fourth-quarter 2025 earnings season projected [1] - The Federal Reserve is expected to maintain the current lending rate range in January [1] - A selection of stocks has shown significant price strength, particularly those on a recent bull run, indicating potential for continued momentum [1][2] Stock Performance Highlights - RF Industries Ltd. (RFIL) has seen a stock price increase of 79.6% over the past four weeks, with an expected earnings growth rate of 7.5% for the current year [7][6] - Betterware de México S.A.P.I. de C.V. (BWMX) experienced a 32.7% price jump in four weeks, supported by a 44.4% expected earnings growth rate [9][8] - Forum Energy Technologies Inc. (FET) has climbed 17.9% in stock price over the past four weeks, with an expected earnings growth rate exceeding 100% [11][10] - Krystal Biotech Inc. (KRYS) shares rose 10.5% in four weeks, with expected earnings growth of 31.6% for the current year [14][12] - Mama's Creations Inc. (MAMA) advanced 9.5% in stock price, with an expected earnings growth of 84.6% for the current year [16][15] Screening Parameters for Stock Selection - Stocks must show a percentage change in price greater than zero over the last four weeks, indicating upward movement [4] - A percentage change in price greater than 10% over the last 12 weeks is required to ensure sustained momentum [4] - Stocks must have a Zacks Rank of 1 (Strong Buy) and an average broker rating of 1, indicating strong future performance expectations [5] - Current stock prices must be above $5 and trading near their 52-week high, specifically more than 85% of the high-low range [6]

Group 1 - Betterware de Mexico SAPI de C (BWMX) shares have increased by 33.4% over the past four weeks, closing at $18.22, with a mean price target of $23.33 indicating a potential upside of 28.1% [1] - The average price targets range from a low of $20.00 to a high of $30.00, with a standard deviation of $5.77, suggesting a variability in estimates; the lowest estimate indicates a 9.8% increase, while the highest suggests a 64.7% upside [2] - Analysts show strong agreement on BWMX's ability to report better earnings than previously predicted, which supports the view of potential upside [4][11] Group 2 - The Zacks Consensus Estimate for BWMX has increased by 38% due to one estimate moving higher over the last 30 days without any negative revisions [12] - BWMX holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimates, indicating a strong potential upside [13] - While the consensus price target may not be a reliable indicator of the extent of BWMX's gains, it does provide a directional guide for price movement [14]

Core Insights - Betterware de México, S.A.P.I. de C.V. (NYSE: BWMX) has entered into a definitive agreement to acquire Tupperware's operating assets in Latin America, which includes a 100% acquisition of Tupperware's Latin American businesses and an exclusive license for the Tupperware® brand in the region [1][2] Financial Details - The acquisition is valued at $250 million, comprising $215 million in cash funded through debt and $35 million in BeFra shares, structured on a debt-free, excess-cash-free basis [2] Market Impact - This transaction will consolidate three leading brands in Latin America's direct selling market: Betterware, Jafra, and Tupperware, enhancing their market presence [2] Transaction Timeline - The deal is expected to close in the first half of 2026, pending customary regulatory and closing conditions [2] Legal Representation - The acquisition is represented by Greenberg Traurig, P.A., with a team led by Antonio Peña and includes various shareholders and associates specializing in corporate, intellectual property, and antitrust law [3][4]

Core Viewpoint - Betterware de Mexico SAPI de C (BWMX) is identified as a strong momentum stock with a Momentum Style Score of A and a Zacks Rank of 1 (Strong Buy), indicating potential for significant near-term gains [3][4][12]. Momentum Analysis - Momentum investing focuses on following a stock's recent price trends, with the strategy of buying high and selling higher [1]. - BWMX shares have increased by 15.2% over the past week, while the Zacks Consumer Products - Discretionary industry remained flat during the same period [6]. - Over the past month, BWMX's price has risen by 38.53%, significantly outperforming the industry's 3.26% [6]. - In the last quarter, BWMX shares rose by 31.35%, and over the past year, they increased by 65.54%, compared to the S&P 500's gains of 2.92% and 14.29%, respectively [7]. Trading Volume - The average 20-day trading volume for BWMX is 106,943 shares, which serves as a bullish indicator when combined with rising stock prices [8]. Earnings Outlook - Recent earnings estimate revisions for BWMX show one upward revision for the full year, increasing the consensus estimate from $1.70 to $1.71 [10]. - For the next fiscal year, one estimate has also moved upwards, with no downward revisions noted [10]. Conclusion - Given the strong momentum indicators and positive earnings outlook, BWMX is positioned as a compelling investment opportunity for those seeking stocks with potential for near-term growth [12].

Core Viewpoint - The article emphasizes the importance of confirming the sustainability of stock trends for profitable short-term investing, highlighting the need for sound fundamentals and positive earnings revisions to maintain momentum. Group 1: Trend Analysis - The trend in short-term investing is crucial, and confirming its sustainability is essential for profitability [1][2] - Stocks that show recent price strength, particularly those trading near their 52-week high, are indicative of bullish trends [3] Group 2: Company Spotlight - Betterware de Mexico SAPI de C (BWMX) - BWMX has demonstrated a solid price increase of 31.4% over the past 12 weeks, indicating strong investor interest [4] - The stock has increased by 38.5% in the last four weeks, suggesting that the upward trend is still intact [5] - BWMX is currently trading at 94% of its 52-week high-low range, indicating a potential breakout [5] Group 3: Fundamental Strength - BWMX holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [6] - The Zacks Rank system has shown that stocks rated 1 have generated an average annual return of +25% since 1988, indicating strong historical performance [7] - The Average Broker Recommendation for BWMX is also 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [7] Group 4: Additional Opportunities - Besides BWMX, there are other stocks that meet the "Recent Price Strength" criteria, suggesting further investment opportunities [8] - The article mentions the availability of over 45 Zacks Premium Screens to help investors find winning stock picks based on their investing style [8]

Company Overview - Betterware de Mexico SAPI de C (BWMX) is currently ranked 1 (Strong Buy) in the Zacks Rank system, indicating a strong potential for outperforming the market in the near term [3] - The stock has shown a year-to-date return of 36.8%, significantly outperforming the average loss of 0.5% in the Consumer Discretionary sector [4] Earnings Outlook - The Zacks Consensus Estimate for BWMX's full-year earnings has increased by 38% over the past quarter, reflecting improved analyst sentiment and a more positive earnings outlook [4] - Betterware de Mexico SAPI de C is part of the Consumer Products - Discretionary industry, which has an average loss of 0.9% this year, further highlighting BWMX's strong performance [6] Industry Context - The Consumer Discretionary sector, which includes 261 individual stocks, is currently ranked 12 in the Zacks Sector Rank [2] - In comparison, G-III Apparel Group (GIII), another stock in the Consumer Discretionary sector, has returned 0.7% year-to-date and has a Zacks Rank of 2 (Buy) [5] - The Textile - Apparel industry, to which G-III belongs, has experienced a decline of 12.9% this year, contrasting with the performance of Betterware de Mexico SAPI de C [7]

Core Viewpoint - Betterware is acquiring Tupperware's Latin American operations for $250 million, which is significantly below the market average valuation multiple, indicating a strong investment opportunity [1][4][17] Acquisition Details - The acquisition price consists of $215 million in cash and $35 million in stock, representing a valuation multiple of 3.1x estimated 2025 EV/EBITDA [1][4] - The deal is expected to be immediately accretive, with projections indicating a 40% increase in earnings per share (EPS) and an annual EBITDA contribution of $81 million [6][8] Market Reaction - Following the announcement, Betterware's stock surged by over 12%, reflecting investor confidence in the acquisition's potential [5][18] - Analysts have adjusted their price targets upward, with some firms eyeing a target of $30 per share [18] Operational Strategy - Betterware plans to utilize underutilized manufacturing facilities in Mexico and Brazil, which are currently operating at 65% and 50% capacity, respectively [9][10] - The strategy involves moving production into these facilities to reduce costs and increase profit margins through better absorption of fixed costs [11] Management and Integration - Luis Campos, the current Chairman of Betterware, has a strong background in the industry, having previously served as Chairman of Tupperware Americas, which reduces integration risk [12][13] - The management has assured that the acquisition will not impact the current high-yield dividend policy, which ranges from 5% to 8% [16] Financial Health - Betterware will fund the acquisition with debt, increasing its leverage ratio from 1.6x to approximately 1.9x, which remains within a safe range [14][15] - The strong cash flow generated from the acquired assets supports the company's ability to manage this increased leverage [15]

Group 1 - Betterware de Mexico (BWMX) is favored by value investors for its high-yield dividends and efficient capital allocation [2] - The stock has often been perceived as a small-cap investment opportunity [2] - The investing group Yield Hunting offers a premium service for income investors, managing four portfolios with various yield targets [1][2] Group 2 - George Spritzer, CFA, is a registered investment advisor specializing in managing closed-end funds and investing in special situations [2] - The group provides a monthly newsletter, weekly commentary, rankings of closed-end funds (CEFs) based on yield, trade alerts, and access to chat for investor inquiries [1][2]