US Foods (USFD) Shows Fast-paced Momentum But Is Still a Bargain Stock

Group 1: Momentum Investing Overview - Momentum investing contrasts with the traditional "buy low and sell high" strategy, focusing instead on "buying high and selling higher" to capitalize on fast-moving stocks [1] - Identifying the right entry point for momentum stocks can be challenging, as they may lose momentum if their valuations exceed future growth potential [1] Group 2: Investment Strategy - 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 [2] - The 'Fast-Paced Momentum at a Bargain' screen helps in spotting fast-moving stocks that remain attractively priced [2] Group 3: US Foods (USFD) Analysis - US Foods (USFD) has shown a price increase of 3.8% over the past four weeks, indicating growing investor interest [3] - The stock gained 10% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [4] - USFD has a beta of 1.66, suggesting it moves 66% more than the market in either direction, indicating fast-paced momentum [4] - The stock has a Momentum Score of B, suggesting it is an opportune time to invest [5] - USFD has earned a Zacks Rank 2 (Buy) due to upward trends in earnings estimate revisions, which attract more investor interest [6] - The stock is trading at a Price-to-Sales ratio of 0.40, indicating it is relatively cheap, as investors pay only 40 cents for each dollar of sales [6] Group 4: Additional Investment Opportunities - Besides USFD, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting additional investment opportunities [7] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [8]