Group 1: Momentum Investing Overview - Momentum investing deviates from the traditional strategy of "buying low and selling high," focusing instead on "buying high and selling higher" to achieve quicker profits [1] - 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 inflated valuations [2] Group 2: Investment Strategy - Investing in bargain stocks that have recently shown price momentum can be a safer approach, utilizing tools like the Zacks Momentum Style Score to identify promising stocks [3] - FuelCell Energy (FCEL) is highlighted as a strong candidate, with a notable four-week price change of 52.7%, indicating growing investor interest [4] Group 3: Performance Metrics - FCEL has demonstrated a 6.3% gain over the past 12 weeks, with a high beta of 4.13, suggesting it moves 313% more than the market [5] - FCEL's Momentum Score of A indicates a favorable entry point for investors looking to capitalize on its momentum [6] Group 4: Earnings and Valuation - An upward trend in earnings estimate revisions has contributed to FCEL's Zacks Rank 2 (Buy), as increased analyst interest typically attracts more investors [7] - FCEL is trading at a Price-to-Sales ratio of 0.97, suggesting it is undervalued, as investors pay only 97 cents for each dollar of sales [7] Group 5: Additional Opportunities - FCEL is not the only stock meeting the criteria of the 'Fast-Paced Momentum at a Bargain' screen, with several other stocks also identified for potential investment [8] - The Zacks Premium Screens offer over 45 different strategies for stock selection, tailored to various investing styles [9]
Looking for a Fast-paced Momentum Stock at a Bargain? Consider FuelCell Energy (FCEL)