Despite Fast-paced Momentum, Macy's (M) Is Still a Bargain Stock

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 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 with Momentum - Investing in bargain stocks that have recently shown price momentum may 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: Macy's Stock Analysis - Macy's (M) has shown a price increase of 5.1% over the past four weeks, indicating growing investor interest [3] - The stock has gained 45.3% over the past 12 weeks, demonstrating sustained positive momentum [4] - Macy's has a beta of 1.78, suggesting it moves 78% more than the market in either direction [4] - The stock has a Momentum Score of B, indicating a favorable time to invest [5] Group 4: Earnings Estimates and Valuation - Macy's has received a Zacks Rank 1 (Strong Buy) due to upward revisions in earnings estimates, which attract more investor interest [6] - The stock is trading at a Price-to-Sales ratio of 0.22, indicating it is relatively cheap at 22 cents for each dollar of sales [6] - This favorable valuation suggests that Macy's has significant potential for further price appreciation [7]