Fast-paced Momentum Stock ScanSource (SCSC) Is Still Trading at a Bargain

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 potential downside if growth fails to justify high valuations [2] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify promising candidates [3] Group 2: Company Spotlight - ScanSource (SCSC) - ScanSource (SCSC) has shown a four-week price change of 3.4%, indicating growing investor interest and positioning it well within the momentum investing framework [4] - Over the past 12 weeks, SCSC's stock has gained 11.5%, with a beta of 1.43, suggesting it moves 43% more than the market in either direction [5] - SCSC has a Momentum Score of B, indicating a favorable time to invest based on momentum [6] Group 3: Earnings and Valuation - SCSC has received a Zacks Rank 2 (Buy) due to upward trends in earnings estimate revisions, which attract more investor interest and support price increases [7] - The stock is currently trading at a Price-to-Sales ratio of 0.33, suggesting it is undervalued at 33 cents for each dollar of sales, providing significant room for growth [7] Group 4: 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] - The Zacks Premium Screens offer over 45 different strategies tailored to various investing styles, aiding in the identification of potential winning stocks [9]