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] - Investing in bargain stocks that have recently shown price momentum can be a safer strategy [3] Group 2: Urban Outfitters (URBN) Analysis - Urban Outfitters is highlighted as a strong candidate for momentum investing, with a four-week price change of 4.3% indicating growing investor interest [4] - URBN has gained 1.7% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [5] - The stock has a beta of 1.5, suggesting it moves 50% more than the market in either direction, indicating fast-paced momentum [5] - URBN has a Momentum Score of A, suggesting it is an opportune time to invest in the stock [6] Group 3: Earnings Estimates and Valuation - An upward trend in earnings estimate revisions has contributed to URBN earning a Zacks Rank 2 (Buy), which is associated with strong momentum effects [7] - URBN is trading at a Price-to-Sales ratio of 0.65, indicating it is relatively cheap, as investors pay only 65 cents for each dollar of sales [7] Group 4: Additional Investment Opportunities - Besides URBN, 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]
Why Fast-paced Mover Urban Outfitters (URBN) Is a Great Choice for Value Investors