Core Viewpoint - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investing can be risky as stocks may lose momentum when their valuations exceed future growth potential [1] - Identifying the right entry point for fast-moving stocks is challenging, and investors may end up with expensive shares that have limited upside [1] Group 2: Zacks Momentum Style Score - The Zacks Momentum Style Score helps identify stocks with strong price or earnings trends, and the 'Fast-Paced Momentum at a Bargain' screen identifies attractively priced fast-moving stocks [2] - a.k.a. Brands (AKA) has shown a price increase of 22.7% over the past four weeks, indicating growing investor interest [2] Group 3: Performance Metrics of AKA - AKA's stock gained 18.5% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [3] - The stock has a beta of 1.36, indicating it moves 36% higher than the market in either direction, reflecting fast-paced momentum [3] Group 4: Earnings Estimates and Valuation - AKA has a Momentum Score of A and a Zacks Rank 2 (Buy), supported by upward revisions in earnings estimates [4] - The stock is trading at a Price-to-Sales ratio of 0.40, suggesting it is undervalued as investors pay only 40 cents for each dollar of sales [4] Group 5: Investment Opportunities - Besides AKA, there are other stocks that meet the 'Fast-Paced Momentum at a Bargain' criteria, providing additional investment opportunities [5] - The Zacks Research Wizard can assist in backtesting stock-picking strategies to ensure past profitability [5]
Fast-paced Momentum Stock a.k.a. Brands (AKA) Is Still Trading at a Bargain