Fast-paced Momentum Stock Compass (COMP) 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" approach, aiming for quicker profits [1] Group 1: Momentum Investing Characteristics - Fast-moving trending stocks can be difficult to enter at the right time, as they may lose momentum if future growth does not justify their high valuations [2] - A safer strategy 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: Company Spotlight - Compass, Inc. (COMP) - Compass, Inc. has shown a significant price increase of 19.1% over the past four weeks, indicating growing investor interest [4] - Over the past 12 weeks, COMP's stock has gained 68.3%, demonstrating its ability to deliver positive returns over a longer timeframe [5] - COMP has a high beta of 2.92, suggesting it moves 192% higher than the market in either direction, indicating fast-paced momentum [5] - The stock has a Momentum Score of B, suggesting it is an opportune time for investment to capitalize on its momentum [6] Group 3: Earnings and Valuation - An upward trend in earnings estimate revisions has contributed to COMP earning a Zacks Rank 2 (Buy), which is associated with strong momentum effects [7] - COMP is trading at a Price-to-Sales ratio of 0.58, indicating it is relatively cheap, as investors pay only 58 cents for each dollar of sales [7] Group 4: Additional Opportunities - Besides COMP, 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 to help identify winning stock picks based on various investing styles [9]