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 when their valuations exceed future growth potential [1] - Identifying the right entry point for momentum stocks is challenging, and investors may end up with expensive shares that have limited upside [1] Group 2: Bargain Momentum Stocks - Investing in bargain stocks that have recently shown price momentum may be a safer strategy [2] - The Zacks Momentum Style Score helps identify strong momentum stocks, while the 'Fast-Paced Momentum at a Bargain' screen identifies fast-moving stocks that are still attractively priced [2] Group 3: United Airlines (UAL) Analysis - United Airlines (UAL) has shown a four-week price change of 5.3%, indicating growing investor interest [3] - UAL's stock gained 82.5% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [4] - UAL has a beta of 1.44, indicating it moves 44% higher than the market in either direction [4] - UAL has a Momentum Score of A, suggesting it is an opportune time to invest in the stock [5] - UAL has a Zacks Rank 1 (Strong Buy) due to upward revisions in earnings estimates, which attract more investors [6] - UAL is trading at a Price-to-Sales ratio of 0.56, indicating it is relatively cheap at present [6] Group 4: Additional Investment Opportunities - Besides UAL, 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, United (UAL) Is Still a Bargain Stock