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 fast-moving stocks is challenging, and investors may end up with expensive shares that have limited upside [1] Group 2: Bargain Stocks with Momentum - Investing in bargain stocks that have recently shown price momentum may be a safer strategy [2] - The Zacks Momentum Style Score helps identify strong momentum stocks, while the 'Fast-Paced Momentum at a Bargain' screen highlights attractively priced fast-moving stocks [2] Group 3: Local Bounti Corporation (LOCL) Analysis - Local Bounti Corporation (LOCL) has seen a significant price increase of 86.8% over the past four weeks, indicating growing investor interest [3] - LOCL's stock gained 55.7% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [4] - The stock has a beta of 2.14, suggesting it moves 114% higher than the market in either direction [4] Group 4: Valuation and Earnings Estimates - LOCL has a Momentum Score of B, indicating a favorable time to invest based on momentum [5] - The stock has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which attract more investors [6] - LOCL is trading at a Price-to-Sales ratio of 0.99, suggesting it is reasonably valued at 99 cents for each dollar of sales [6] Group 5: Additional Investment Opportunities - Besides LOCL, 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, aiding in stock selection [8]
Despite Fast-paced Momentum, Local Bounti (LOCL) Is Still a Bargain Stock