Despite Fast-paced Momentum, Fathom Holdings (FTHM) Is Still a Bargain Stock

Core Viewpoint - Momentum investing focuses on buying stocks that are trending upwards, contrasting with the traditional strategy of buying low and selling high. This approach can lead to significant gains but carries risks if stocks lose momentum after reaching high valuations [1]. Group 1: Momentum Investing Strategy - Momentum investing involves buying high and selling higher, aiming for quick profits from fast-moving stocks [1]. - Identifying the right entry point for momentum stocks is challenging, as they may lose momentum if their valuations exceed future growth potential [1]. Group 2: Bargain Momentum Stocks - A safer investment strategy includes buying bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify such opportunities [2]. - The 'Fast-Paced Momentum at a Bargain' screen helps investors find fast-moving stocks that remain attractively priced [2]. Group 3: Fathom Holdings (FTHM) Analysis - Fathom Holdings (FTHM) has shown a four-week price change of 6.3%, indicating growing investor interest [3]. - Over the past 12 weeks, FTHM's stock price has increased by 82.2%, demonstrating its ability to deliver positive returns over a longer timeframe [4]. - FTHM has a beta of 2.12, suggesting it moves 112% higher than the market in either direction, indicating fast-paced momentum [4]. - The stock has a Momentum Score of A, suggesting it is an opportune time to invest [5]. - FTHM has received a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which typically attract more investors [6]. - The stock is trading at a Price-to-Sales ratio of 0.10, indicating it is undervalued at 10 cents for each dollar of sales [6]. Group 4: Additional Investment Opportunities - Besides FTHM, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [7]. - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [8].