Core Viewpoint - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investing can be risky as stocks may lose momentum if future growth does not justify high valuations [1] - Identifying the right entry point for fast-moving stocks is challenging, and traditional momentum parameters may not always be reliable [1] Group 2: Bargain Stocks and Screening - Investing in bargain stocks with recent price momentum can be a safer strategy [2] - The Zacks Momentum Style Score is useful for identifying strong momentum stocks, while the 'Fast-Paced Momentum at a Bargain' screen helps find attractively priced fast-moving stocks [2] Group 3: Constellium (CSTM) Analysis - Constellium (CSTM) has shown a four-week price change of 3%, indicating growing investor interest [3] - CSTM gained 2.8% over the past 12 weeks, with a beta of 1.7, suggesting it moves 70% more than the market [4] - CSTM has a Momentum Score of B, indicating a favorable time to invest [5] - The stock has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which attract more investors [6] - CSTM is trading at a Price-to-Sales ratio of 0.27, meaning investors pay 27 cents for each dollar of sales, indicating a reasonable valuation [6] Group 4: Additional Investment Opportunities - Besides CSTM, there are other stocks that meet the 'Fast-Paced Momentum at a Bargain' criteria, suggesting further investment opportunities [7] - Zacks offers over 45 Premium Screens tailored to different investing styles to help identify winning stock picks [8]
Why Fast-paced Mover Constellium (CSTM) Is a Great Choice for Value Investors