Looking for a Fast-paced Momentum Stock at a Bargain? Consider Stem (STEM)

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 approach may involve investing in bargain stocks that have recently shown price momentum, utilizing tools like the Zacks Momentum Style Score to identify such opportunities [3] Group 2: Case Study - Stem, Inc. (STEM) - Stem, Inc. has demonstrated significant price momentum with a four-week price change of 129%, indicating strong investor interest [4] - The stock has gained 42.9% over the past 12 weeks and has a beta of 1.43, suggesting it moves 43% more than the market [5] - STEM has a Momentum Score of A, indicating a favorable entry point for investors looking to capitalize on its momentum [6] Group 3: Earnings Estimates and Valuation - An upward trend in earnings estimate revisions has contributed to STEM's Zacks Rank 2 (Buy), as increased analyst interest typically drives stock prices higher [7] - STEM is trading at a Price-to-Sales ratio of 0.52, suggesting it is undervalued at 52 cents for each dollar of sales, providing room for further price appreciation [7] Group 4: Additional Opportunities - Besides STEM, 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]