Core Insights - Momentum investors focus on "buying high and selling higher" rather than traditional strategies of buying low and waiting for recovery [1] - Investing in fast-moving stocks can be risky if valuations exceed future growth potential, leading to potential losses [2] Group 1: Momentum Investing - Momentum investing involves identifying stocks that are experiencing price increases, with a focus on those that are still attractively priced [3] - Cooper-Standard (CPS) is highlighted as a strong candidate due to a recent price increase of 2.4% over the past four weeks, indicating growing investor interest [4] Group 2: Performance Metrics - CPS has gained 56% over the past 12 weeks, demonstrating strong momentum, with a beta of 2.63, indicating it moves 163% higher than the market [5] - CPS has a Momentum Score of A, suggesting it is an opportune time to invest in the stock for potential success [6] Group 3: Earnings Estimates and Valuation - CPS has received upward revisions in earnings estimates, earning a Zacks Rank 1 (Strong Buy), which is associated with strong momentum effects [7] - The stock is trading at a Price-to-Sales ratio of 0.24, indicating it is relatively cheap, as investors pay only 24 cents for each dollar of sales [7] Group 4: Additional Opportunities - Besides CPS, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, suggesting further investment opportunities [8] - The Zacks Premium Screens offer over 45 strategies to help identify winning stock picks based on various investing styles [9]
Why Fast-paced Mover Cooper-Standard (CPS) Is a Great Choice for Value Investors