Fast-paced Momentum Stock Wayfair (W) Is Still Trading at a Bargain

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 is useful for identifying strong momentum stocks, while the 'Fast-Paced Momentum at a Bargain' screen helps find attractively priced fast-moving stocks [2] Group 3: Wayfair (W) Analysis - Wayfair (W) has shown a four-week price change of 1.8%, indicating growing investor interest [3] - Over the past 12 weeks, W's stock gained 10.6%, demonstrating its ability to deliver positive returns over a longer timeframe [4] - W has a high beta of 3.43, suggesting it moves 243% higher than the market in either direction [4] Group 4: Valuation and Earnings Estimates - W has a Momentum Score of A, indicating a favorable time to invest [5] - The stock has a Zacks Rank 2 (Buy) due to upward trends in earnings estimate revisions, which attract more investors [6] - W is trading at a Price-to-Sales ratio of 0.47, meaning investors pay 47 cents for each dollar of sales, indicating a reasonable valuation [6] Group 5: Additional Investment Opportunities - Besides W, 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]