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 Strategy - Momentum investing can be risky as stocks may lose momentum if future growth does not justify high valuations [1] - Identifying the right entry point for fast-moving stocks is challenging, and traditional momentum parameters may not always be reliable [1] Group 2: Bargain Stocks and Screening - Investing in bargain stocks that have recently shown price momentum may be a safer strategy [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 3: Bumble Inc. (BMBL) Analysis - Bumble Inc. (BMBL) has shown a price increase of 16% over the past four weeks, indicating growing investor interest [3] - BMBL gained 35.6% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [4] - The stock has a beta of 1.71, suggesting it moves 71% more than the market in either direction [4] Group 4: Valuation and Earnings Estimates - BMBL has a Momentum Score of B, indicating a favorable time to invest [5] - The stock has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which attract more investors [6] - BMBL is trading at a Price-to-Sales ratio of 0.87, suggesting it is undervalued as investors pay only 87 cents for each dollar of sales [6] Group 5: Additional Investment Opportunities - Besides BMBL, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen [7] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to find potential winning stocks [8]
Despite Fast-paced Momentum, Bumble (BMBL) Is Still a Bargain Stock