3D Systems (DDD) Shows Fast-paced Momentum But Is Still a Bargain Stock

Core Concept - Momentum investing focuses on "buying high and selling higher" rather than the traditional "buying low and selling high" approach, aiming for quicker profits [1] Group 1: Momentum Investing Characteristics - Momentum investing can be risky as stocks may lose momentum if their valuations exceed future growth potential, leading to potential losses for investors [2] - A safer approach may involve investing in bargain stocks that are experiencing recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify such opportunities [3] Group 2: Case Study - 3D Systems (DDD) - 3D Systems has shown a price increase of 3.1% over the past four weeks, indicating growing investor interest [4] - The stock has gained 80.2% over the past 12 weeks, with a beta of 2.11, suggesting it moves significantly more than the market [5] - DDD has a Momentum Score of B, indicating a favorable time to invest based on momentum [6] Group 3: Earnings Estimates and Valuation - An upward trend in earnings estimate revisions has contributed to DDD's Zacks Rank 2 (Buy), as increased analyst interest typically drives stock prices higher [7] - DDD is trading at a Price-to-Sales ratio of 0.93, suggesting it is undervalued relative to its sales, providing room for further price appreciation [7] Group 4: Additional Opportunities - Besides DDD, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting additional investment opportunities [8] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [9]