Despite Fast-paced Momentum, DNOW (DNOW) Is Still a Bargain Stock

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 for fast-moving stocks, which can lead to limited upside or downside risks [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: DNOW Stock Analysis - DNOW has shown a four-week price change of 9.8%, indicating growing investor interest and positioning it well within the momentum investing framework [4] - The stock has gained 1.9% over the past 12 weeks and has a beta of 1.21, suggesting it moves 21% more than the market in either direction [5] - DNOW holds a Momentum Score of B, indicating a favorable time to invest based on momentum [6] Group 3: Earnings and Valuation - An upward trend in earnings estimate revisions has contributed to DNOW's Zacks Rank 2 (Buy), which is associated with strong momentum effects [7] - DNOW is trading at a Price-to-Sales ratio of 0.70, suggesting it is undervalued at 70 cents for each dollar of sales, providing room for growth [7] Group 4: Additional Opportunities - Besides DNOW, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting additional investment opportunities [8] - Various Zacks Premium Screens are available to assist in identifying winning stock picks based on different investing styles [9]