Fast-paced Momentum Stock DXP Enterprises (DXPE) Is Still Trading at a Bargain

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than the traditional "buying low and selling high" strategy, aiming for quicker profits [1] Group 1: Momentum Investing Characteristics - Momentum investing can be risky as stocks may lose momentum if their valuations exceed future growth potential, leading to potential losses for investors [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: DXP Enterprises (DXPE) Analysis - DXP Enterprises (DXPE) has shown a four-week price change of 0.7%, indicating growing investor interest and positioning it well for momentum investing [4] - Over the past 12 weeks, DXPE's stock has gained 2.8%, with a beta of 1.6, suggesting it moves 60% more than the market in either direction, indicating strong momentum [5] - DXPE has a Momentum Score of A, suggesting it is an opportune time to invest in the stock to capitalize on its momentum [6] Group 3: Earnings Estimates and Valuation - An upward trend in earnings estimate revisions has contributed to DXPE earning a Zacks Rank 2 (Buy), as increased analyst interest typically drives stock prices higher [7] - DXPE is trading at a Price-to-Sales ratio of 0.47, indicating it is undervalued, as investors pay only 47 cents for each dollar of sales, providing significant room for growth [7] Group 4: Additional Investment Opportunities - Besides DXPE, 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 help investors find winning stock picks [9]