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 Characteristics - Momentum investing can be risky as stocks may lose momentum if their valuations exceed future growth potential [2] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, identified through the Zacks Momentum Style Score [3] Group 2: PagSeguro Digital Ltd. (PAGS) Analysis - PAGS has shown a price increase of 10.9% over the past four weeks, indicating growing investor interest [4] - The stock gained 8.6% over the past 12 weeks and has a beta of 1.57, suggesting it moves 57% more than the market [5] - PAGS has a Momentum Score of B, indicating a favorable time to invest [6] - The stock has a Zacks Rank 1 (Strong Buy) due to upward revisions in earnings estimates, which attract more investors [7] - PAGS is trading at a Price-to-Sales ratio of 0.95, suggesting it is undervalued at 95 cents for each dollar of sales [7] Group 3: Investment Opportunities - PAGS is highlighted as a strong candidate for investment, with potential for significant price movement [8] - There are additional stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, offering further investment opportunities [8]
PagSeguro Digital (PAGS) Is Attractively Priced Despite Fast-paced Momentum