Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than the traditional "buying low and selling high" approach, aiming for quicker profits [1] Group 1: Momentum Investing Strategy - Fast-moving trending stocks can be challenging to enter at the right time, as they may lose momentum if future growth does not justify their high valuations [2] - A safer strategy involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify such opportunities [3] Group 2: Company Analysis - ScanSource (SCSC) - ScanSource (SCSC) has shown a price increase of 7.8% over the past four weeks, indicating growing investor interest [4] - Over the past 12 weeks, SCSC's stock gained 10.8%, demonstrating its ability to deliver positive returns over a longer timeframe [5] - SCSC has a Momentum Score of A, suggesting it is an opportune time to invest in the stock for maximum momentum advantage [6] - The stock has received a Zacks Rank 1 (Strong Buy) due to upward revisions in earnings estimates, which typically attract more investors [7] - SCSC is trading at a Price-to-Sales ratio of 0.32, indicating it is relatively undervalued, as investors pay only 32 cents for each dollar of sales [7] Group 3: Additional Opportunities - Besides SCSC, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [9]
Why Fast-paced Mover ScanSource (SCSC) Is a Great Choice for Value Investors