Group 1: Momentum Investing Overview - Momentum investing deviates from the traditional "buy low and sell high" strategy, focusing instead on "buying high and selling higher" to maximize returns in a shorter time frame [1] - Fast-moving trending stocks can be appealing, but determining the right entry point is challenging, as these stocks may lose momentum if their valuations exceed future growth potential [2] Group 2: Investment Strategy and Stock Selection - Investing in bargain stocks that have recently shown price momentum can be a safer approach. The Zacks Momentum Style Score is useful for identifying strong momentum stocks, while the 'Fast-Paced Momentum at a Bargain' screen helps find attractively priced fast-moving stocks [3] - Equillium, Inc. (EQ) is highlighted as a strong candidate, with a four-week price change of 22.3%, indicating growing investor interest [4] - EQ has demonstrated positive returns over a longer time frame, gaining 20.7% over the past 12 weeks, and has a beta of 1.79, suggesting it moves significantly more than the market [5] Group 3: Performance Metrics and Valuation - EQ has a Momentum Score of B, indicating a favorable time to invest, and an upward trend in earnings estimate revisions has earned it a Zacks Rank 2 (Buy) [6][7] - The stock is trading at a Price-to-Sales ratio of 0.66, suggesting it is undervalued, as investors pay only 66 cents for each dollar of sales [7] Group 4: Additional Investment Opportunities - Besides EQ, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - The Zacks Premium Screens offer over 45 different strategies tailored to various investing styles, aiding in stock selection [9]
Equillium (EQ) Shows Fast-paced Momentum But Is Still a Bargain Stock