Fast-paced Momentum Stock Petco (WOOF) Is Still Trading at a Bargain

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 maximize returns in a shorter timeframe [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 - A safer investment approach involves targeting bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify promising candidates [3] - Petco Health & Wellness (WOOF) is highlighted as a strong candidate, having experienced a 5.3% price increase over the past four weeks, indicating growing investor interest [4] Group 3: Performance Metrics - WOOF has shown a 14.2% price gain over the past 12 weeks, with a beta of 1.74, suggesting it moves 74% more than the market in either direction [5] - The stock has a Momentum Score of B, indicating a favorable entry point for investors looking to capitalize on its momentum [6] Group 4: Earnings and Valuation - WOOF has achieved a Zacks Rank 1 (Strong Buy) due to upward revisions in earnings estimates, which typically attract more investor interest and drive prices higher [7] - The stock is currently trading at a Price-to-Sales ratio of 0.18, suggesting it is undervalued, as investors pay only 18 cents for each dollar of sales [7] Group 5: Additional Opportunities - Besides WOOF, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [9]