Enhabit (EHAB) Shows Fast-paced Momentum But Is Still a Bargain Stock

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 - Fast-moving trending stocks can be difficult to enter at the right time, as they may lose momentum if future growth does not justify their high valuations [2] - Investing in bargain stocks that have recently shown price momentum can be a safer strategy, utilizing tools like the Zacks Momentum Style Score to identify potential opportunities [3] Group 2: Case Study - Enhabit (EHAB) - Enhabit (EHAB) has shown a price increase of 9.7% over the past four weeks, indicating growing investor interest [4] - The stock has gained 12.8% over the past 12 weeks, with a beta of 1.82, suggesting it moves 82% more than the market [5] - EHAB has a Momentum Score of A, indicating a favorable time to invest based on its momentum [6] Group 3: Earnings Estimates and Valuation - An upward trend in earnings estimate revisions has contributed to EHAB earning a Zacks Rank 2 (Buy), which is associated with strong momentum effects [7] - EHAB is trading at a Price-to-Sales ratio of 0.42, suggesting it is undervalued at 42 cents for each dollar of sales [7] Group 4: Additional Opportunities - Besides EHAB, 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]