Why Fast-paced Mover Guess (GES) Is a Great Choice for Value Investors

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 potential opportunities [3] Group 2: Case Study - Guess (GES) - Guess (GES) has shown significant price momentum, with a four-week price change of 29.9%, indicating growing investor interest [4] - Over the past 12 weeks, GES stock has gained 53.7%, with a beta of 1.24, suggesting it moves 24% more than the market [5] - GES has a Momentum Score of A, indicating a favorable time to invest based on its momentum characteristics [6] Group 3: Earnings Estimates and Valuation - GES has benefited from upward revisions in earnings estimates, earning a Zacks Rank 2 (Buy), which is associated with strong momentum effects [7] - The stock is currently trading at a Price-to-Sales ratio of 0.28, suggesting it is undervalued, as investors pay only 28 cents for each dollar of sales [7] Group 4: Additional Opportunities - Besides GES, 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 based on various investing styles [9]