Why Fast-paced Mover Outbrain (OB) Is a Great Choice for Value Investors

Group 1: Momentum Investing Overview - Momentum investing deviates from the traditional strategy of "buying low and selling high," focusing instead on "buying high and selling higher" to achieve quicker profits [1] - Fast-moving trending stocks can be challenging to enter at the right time, as they may lose momentum if future growth does not justify their inflated valuations [2] Group 2: Investment Strategy - A safer investment approach involves targeting bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify promising candidates [3] - Outbrain Inc. (OB) is highlighted as a strong candidate, showing a four-week price change of 17.5%, indicating growing investor interest [4] Group 3: Performance Metrics - OB has demonstrated a 1% gain over the past 12 weeks, with a beta of 1.46, suggesting it moves 46% more than the market in either direction [5] - OB's Momentum Score of A indicates a favorable entry point for investors looking to capitalize on its momentum [6] Group 4: Earnings and Valuation - An upward trend in earnings estimate revisions has contributed to OB earning a Zacks Rank 1 (Strong Buy), which is associated with strong momentum effects [7] - OB is trading at a Price-to-Sales ratio of 0.28, indicating it is relatively undervalued, as investors pay only 28 cents for each dollar of sales [7] Group 5: Additional Opportunities - Besides OB, 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 tailored to help investors find winning stock picks [9]