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Duluth Holdings (DLTH) Shows Fast-paced Momentum But Is Still a Bargain Stock
Duluth Duluth (US:DLTH) ZACKSยท2025-06-19 13:51

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investors often face challenges in determining the right entry point, as stocks may lose momentum when their valuations exceed future growth potential [2] - Investing in bargain stocks that exhibit recent price momentum can be a safer strategy, utilizing tools like the Zacks Momentum Style Score to identify promising stocks [3] Group 2: Duluth Holdings (DLTH) Analysis - Duluth Holdings has shown a price increase of 8.2% over the past four weeks, indicating growing investor interest [4] - The stock gained 7% over the past 12 weeks and has a beta of 1.3, suggesting it moves 30% more than the market [5] - DLTH has a Momentum Score of A, indicating a favorable time to invest based on momentum [6] Group 3: Earnings Estimates and Valuation - An upward trend in earnings estimate revisions has contributed to DLTH earning a Zacks Rank 2 (Buy), which is associated with strong momentum effects [7] - DLTH is trading at a Price-to-Sales ratio of 0.12, suggesting it is undervalued at 12 cents for each dollar of sales [7] Group 4: Additional Investment Opportunities - Besides DLTH, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - The Zacks Premium Screens offer over 45 different strategies to help identify potential winning stocks [9]