Looking for a Fast-paced Momentum Stock at a Bargain? Consider Whirlpool (WHR)
Whirlpool Whirlpool (US:WHR) ZACKS·2024-07-24 13:51

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investors often face challenges in determining the right entry point, as stocks may lose momentum when their valuations exceed future growth potential [2] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify such opportunities [3] Group 2: Case Study - Whirlpool (WHR) - Whirlpool has shown a significant price increase of 16.5% over the past four weeks, indicating growing investor interest [4] - The stock has gained 6.9% over the past 12 weeks, with a beta of 1.44, suggesting it moves 44% more than the market [5] - WHR has a Momentum Score of A, indicating a favorable time to invest based on momentum [6] Group 3: Earnings Estimates and Valuation - An upward trend in earnings estimate revisions has contributed to WHR's Zacks Rank 2 (Buy), as analysts raising estimates attract more investor interest [7] - WHR is trading at a Price-to-Sales ratio of 0.29, suggesting it is undervalued at 29 cents for each dollar of sales [7] Group 4: Additional Opportunities - Besides WHR, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - The Zacks Premium Screens offer over 45 different strategies tailored to various investing styles, aiding in stock selection [9]