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 if their valuations exceed future growth potential [1] - Identifying the right entry point for fast-moving 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: Compass, Inc. (COMP) Analysis - Compass, Inc. (COMP) has shown a price increase of 14.8% over the past four weeks, indicating growing investor interest [3] - Over the past 12 weeks, COMP's stock gained 27.5%, demonstrating its ability to deliver positive returns over a longer timeframe [4] - COMP has a beta of 2.88, suggesting it moves 188% higher than the market in either direction, indicating fast-paced momentum [4] Group 4: Valuation and Earnings Estimates - COMP has a Momentum Score of B, suggesting it is a favorable time to invest in the stock [5] - The stock has a Zacks Rank 2 (Buy) due to upward trends in earnings estimate revisions, which attract more investors [6] - COMP is trading at a Price-to-Sales ratio of 0.79, indicating it is reasonably valued at 79 cents for each dollar of sales [6] Group 5: Additional Investment Opportunities - Besides COMP, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting additional investment opportunities [7] - Zacks offers over 45 Premium Screens tailored to different investing styles, which can help identify potential winning stocks [8]
Despite Fast-paced Momentum, Compass (COMP) Is Still a Bargain Stock