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 Characteristics - Momentum investing can be risky as stocks may lose momentum when their valuations exceed future growth potential [2] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, identified through the Zacks Momentum Style Score [3] Group 2: Sonoma Pharmaceuticals, Inc. (SNOA) Analysis - SNOA has shown a four-week price change of 32.5%, indicating strong recent price momentum [4] - Over the past 12 weeks, SNOA's stock gained 16.7%, with a beta of 1.56, suggesting it moves 56% more than the market [5] - SNOA has a Momentum Score of A, indicating a favorable time to invest [6] - The stock has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which attract more investor interest [7] - SNOA is trading at a Price-to-Sales ratio of 0.36, suggesting it is undervalued at 36 cents for each dollar of sales [7] Group 3: Investment Opportunities - SNOA is highlighted as a strong candidate for investment, with potential for further price appreciation [8] - Other stocks meeting the "Fast-Paced Momentum at a Bargain" criteria are also available for consideration [8]
Fast-paced Momentum Stock Sonoma Pharmaceuticals (SNOA) Is Still Trading at a Bargain