Why Fast-paced Mover Victoria's Secret (VSCO) Is a Great Choice for Value Investors

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than the traditional "buying low and selling high" approach, aiming for quicker profits [1] Group 1: Momentum Investing Characteristics - Momentum investing can be risky as stocks may lose momentum if their valuations exceed future growth potential, leading to potential losses for investors [2] - A safer strategy involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify such opportunities [3] Group 2: Victoria's Secret (VSCO) Analysis - Victoria's Secret (VSCO) has shown significant recent price momentum, with a four-week price change of 30.3%, indicating growing investor interest [4] - Over the past 12 weeks, VSCO's stock has gained 92.1%, demonstrating its ability to deliver positive returns over a longer timeframe [5] - VSCO has a high beta of 2.19, suggesting it moves 119% more than the market, indicating fast-paced momentum [5] - The stock has a Momentum Score of A, suggesting it is an opportune time to invest [6] - VSCO has received a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which typically attract more investors [7] - The stock is currently trading at a Price-to-Sales ratio of 0.59, indicating it is undervalued at 59 cents for each dollar of sales [7] Group 3: Additional Investment Opportunities - Besides VSCO, 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]