Group 1 - Momentum investing focuses on "buying high and selling higher" rather than traditional strategies of "buying low and selling high" [1] - Fast-moving trending stocks can be risky if their valuations exceed future growth potential, leading to potential losses for investors [2] - A safer strategy involves investing in bargain stocks that exhibit recent price momentum, identified through the Zacks Momentum Style Score [3] Group 2 - DLH Holdings Corp. (DLHC) has shown significant recent price momentum with a four-week price change of 41.2%, indicating strong investor interest [4] - DLHC has gained 1.8% over the past 12 weeks and has a beta of 1.33, suggesting it moves 33% more than the market [5] - DLHC has a Momentum Score of B, indicating a favorable time to invest based on its momentum characteristics [6] Group 3 - DLHC has received a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which attract more investor interest [7] - The stock is trading at a low Price-to-Sales ratio of 0.19, meaning investors pay only 19 cents for each dollar of sales, indicating a reasonable valuation [7] - DLHC is positioned for potential growth at a fast pace, with other stocks also passing the 'Fast-Paced Momentum at a Bargain' screen [8]
DLH (DLHC) Is Attractively Priced Despite Fast-paced Momentum