Despite Fast-paced Momentum, Redfin (RDFN) Is Still a Bargain Stock

Core Viewpoint - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] Group 1: Stock Performance - Redfin (RDFN) has experienced a price increase of 28.7% over the past four weeks, indicating strong investor interest [2] - Over the past 12 weeks, RDFN's stock has gained 40.1%, demonstrating its ability to deliver positive returns over a longer timeframe [2] - RDFN has a beta of 2.66, suggesting it moves 166% higher than the market in either direction, indicating fast-paced momentum [3] Group 2: Momentum Score and Earnings Estimates - RDFN has a Momentum Score of B, indicating it is a favorable time to invest in the stock to capitalize on its momentum [3] - The stock has earned a Zacks Rank 2 (Buy) due to an upward trend in earnings estimate revisions, which typically attracts more investors [4] - The momentum-effect is particularly strong among Zacks Rank 1 and 2 stocks, further supporting RDFN's potential for price appreciation [4] Group 3: Valuation Metrics - RDFN is currently trading at a Price-to-Sales ratio of 0.93, suggesting it is attractively priced as investors pay only 93 cents for each dollar of sales [7] - The stock's reasonable valuation, combined with its fast-paced momentum, positions it well for potential growth [7] Group 4: Investment Strategy - The 'Fast-Paced Momentum at a Bargain' screen helps identify fast-moving stocks that are still attractively priced, including RDFN [6][8] - A balanced approach may involve investing in both momentum stocks and bargain stocks to mitigate risks associated with overvaluation [5]