Core Insights - Momentum investors focus on "buying high and selling higher" rather than traditional strategies of buying low and waiting for recovery [1] - Identifying the right entry point for fast-moving stocks can be challenging, as they may lose momentum if future growth does not justify their high valuations [2] - Investing in bargain stocks that have recently shown price momentum can be a safer strategy [3] Company Analysis: Sally Beauty (SBH) - SBH has experienced a price increase of 16.5% over the past four weeks, indicating growing investor interest [4] - Over the past 12 weeks, SBH's stock has gained 70.8%, with a beta of 1.38, suggesting it moves 38% more than the market [5] - SBH has a Momentum Score of A, indicating a favorable time to invest based on momentum [6] - The stock has received a Zacks Rank 1 (Strong Buy) due to upward revisions in earnings estimates, which attract more investors [7] - SBH is trading at a Price-to-Sales ratio of 0.39, suggesting it is undervalued at 39 cents for each dollar of sales [7] Investment Opportunities - SBH shows potential for continued growth at a fast pace, and there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen [8] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify winning stock picks [9]
Why Fast-paced Mover Sally Beauty (SBH) Is a Great Choice for Value Investors