Empresa (EDN) Is Attractively Priced Despite Fast-paced Momentum

Core Viewpoint - Momentum investing focuses on "buying high and selling higher," rather than traditional strategies of buying low and waiting for recovery [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: Empresa (EDN) Stock Analysis - Empresa (EDN) has shown a significant price increase of 37% over the past four weeks, indicating growing investor interest [4] - Over the past 12 weeks, EDN's stock has gained 85.1%, with a beta of 1.36, suggesting it moves 36% more than the market [5] - EDN has a Momentum Score of A, indicating a favorable time to invest based on momentum [6] Group 3: Earnings Estimates and Valuation - EDN has received upward revisions in earnings estimates, earning a Zacks Rank 2 (Buy), which is associated with strong momentum effects [7] - The stock is currently trading at a Price-to-Sales ratio of 0.70, suggesting it is undervalued at 70 cents for each dollar of sales [7] Group 4: Additional Investment Opportunities - Besides EDN, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - Zacks offers over 45 Premium Screens tailored to different investing styles, aiding in the identification of potential winning stocks [9]