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: Under Armour (UAA) Analysis - Under Armour (UAA) has shown a four-week price change of 1.7%, indicating growing investor interest [4] - UAA's stock gained 10.4% over the past 12 weeks, with a beta of 1.66, suggesting it moves 66% more than the market [5] - UAA has a Momentum Score of A, indicating a favorable time to invest based on momentum [6] Group 3: Earnings Estimates and Valuation - UAA has received a Zacks Rank 1 (Strong Buy) due to upward revisions in earnings estimates, which attract more investors [7] - The stock is trading at a Price-to-Sales ratio of 0.67, meaning investors pay 67 cents for each dollar of sales, indicating a reasonable valuation [7] Group 4: Additional Investment Opportunities - Besides UAA, 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 strategies tailored to help investors find winning stock picks [9]
Why Fast-paced Mover Under Armour (UAA) Is a Great Choice for Value Investors