Core Insights - 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 1: Momentum Investing Strategy - Investing in bargain stocks that have recently shown price momentum can be a safer approach [2] - The Zacks Momentum Style Score is useful for identifying strong momentum stocks, while the 'Fast-Paced Momentum at a Bargain' screen helps find attractively priced fast-moving stocks [2] Group 2: Trivago N.V. (TRVG) Analysis - Trivago N.V. (TRVG) has shown significant price momentum, with a four-week price change of 28.6%, indicating growing investor interest [3] - TRVG has gained 10.8% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [4] - The stock has a beta of 1.76, suggesting it moves 76% higher than the market in either direction, indicating fast-paced momentum [4] Group 3: Valuation and Earnings Estimates - TRVG has a Momentum Score of A, suggesting it is an opportune time to invest in the stock [5] - The stock has a Zacks Rank 1 (Strong Buy) due to upward revisions in earnings estimates, which typically attract more investors [6] - TRVG is trading at a Price-to-Sales ratio of 0.30, indicating it is relatively cheap, as investors pay only 30 cents for each dollar of sales [6] Group 4: Additional Investment Opportunities - Besides TRVG, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting additional investment opportunities [7] - Zacks Premium Screens offer over 45 different strategies to help identify potential winning stocks based on various investing styles [8]
Despite Fast-paced Momentum, Trivago (TRVG) Is Still a Bargain Stock