GrowGeneration (GRWG) Shows Fast-paced Momentum But Is Still a Bargain Stock

Core Viewpoint - Momentum investing focuses on "buying high and selling higher," rather than traditional strategies of buying low and waiting for recovery [1][2] Group 1: Momentum Investing Strategy - Momentum investors often face challenges in determining the right entry point, as stocks can 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: GrowGeneration (GRWG) Analysis - GrowGeneration (GRWG) has shown significant price momentum, with a four-week price change of 45%, indicating strong investor interest [4] - Over the past 12 weeks, GRWG's stock has gained 33%, and it has a high beta of 3.29, suggesting it moves 229% more than the market [5] - GRWG has a Momentum Score of A, indicating a favorable time to invest based on its momentum characteristics [6] Group 3: Earnings Estimates and Valuation - An upward trend in earnings estimate revisions has contributed to GRWG earning a Zacks Rank 2 (Buy), which is associated with strong momentum effects [7] - GRWG is currently trading at a Price-to-Sales ratio of 0.53, suggesting it is undervalued, as investors pay only 53 cents for each dollar of sales [7] Group 4: Additional Investment Opportunities - Besides GRWG, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting additional investment opportunities [8] - The Zacks Premium Screens offer over 45 different strategies tailored to help investors find winning stock picks [9]