Fast-paced Momentum Stock Marcus (MCS) Is Still Trading at a Bargain

Core Viewpoint - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Characteristics - Momentum investing can be risky as stocks may lose momentum when their valuations exceed future growth potential, leading to potential losses for investors [2] - A safer approach may involve investing in bargain stocks that have recently shown price momentum, utilizing tools like the Zacks Momentum Style Score to identify such opportunities [3] Group 2: Case Study - Marcus (MCS) - Marcus (MCS) has demonstrated significant price momentum, with a four-week price change of 32.5%, indicating growing investor interest [4] - Over the past 12 weeks, MCS has gained 54.8%, with a beta of 1.48, suggesting it moves 48% more than the market [5] - MCS has a Momentum Score of B, indicating a favorable entry point for investors looking to capitalize on its momentum [6] Group 3: Earnings Estimates and Valuation - MCS has received a Zacks Rank 1 (Strong Buy) due to upward revisions in earnings estimates, which typically attract more investor interest [7] - The stock is currently trading at a Price-to-Sales ratio of 0.97, suggesting it is undervalued as investors pay only 97 cents for each dollar of sales [7] Group 4: Additional Opportunities - Besides MCS, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [9]