America's Car-Mart (CRMT) Shows Fast-paced Momentum But Is Still a Bargain Stock

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investors often face challenges in determining the right entry point for fast-moving stocks, which can lead to investments with limited upside or potential downside [2] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify these opportunities [3] Group 2: Case Study - America's Car-Mart (CRMT) - CRMT has shown a four-week price change of 5.7%, indicating growing investor interest and positioning it well within the momentum investing framework [4] - Over the past 12 weeks, CRMT's stock has gained 17.3%, with a beta of 1.64, suggesting it moves 64% more than the market in either direction [5] - CRMT has a Momentum Score of B, indicating a favorable time to invest based on its momentum characteristics [6] Group 3: Earnings Estimates and Valuation - An upward trend in earnings estimate revisions has contributed to CRMT earning a Zacks Rank 2 (Buy), which is associated with strong momentum effects [7] - CRMT is trading at a Price-to-Sales ratio of 0.30, suggesting it is undervalued, as investors pay only 30 cents for each dollar of sales [7] Group 4: Additional Opportunities - Besides CRMT, 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]