Despite Fast-paced Momentum, Victoria's Secret (VSCO) Is Still a Bargain Stock

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 for fast-moving stocks, which can lead to investments with limited upside or potential downside [2] - Investing in bargain stocks that have recently shown price momentum can be a safer strategy, utilizing tools like the Zacks Momentum Style Score to identify promising stocks [3] Group 2: Victoria's Secret (VSCO) Analysis - Victoria's Secret (VSCO) has shown significant price momentum, with a four-week price change of 30.7% and a 12-week gain of 58.1% [4][5] - The stock has a high beta of 2.1, indicating it moves 110% higher than the market in either direction, suggesting strong momentum [5] - VSCO has a Momentum Score of A, indicating a favorable time to invest based on its momentum characteristics [6] Group 3: Earnings and Valuation - An upward trend in earnings estimate revisions has contributed to VSCO earning a Zacks Rank 2 (Buy), which is associated with strong momentum effects [7] - VSCO is currently trading at a Price-to-Sales ratio of 0.48, indicating it is attractively priced at 48 cents for each dollar of sales, providing room for growth [7] Group 4: Additional Investment Opportunities - Besides VSCO, 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 potential winning stocks based on various investing styles [9]