Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investors often face challenges in determining the right entry point for fast-moving stocks, which can lead to investments with limited upside or potential downside [2] - A safer approach may involve investing in bargain stocks that have recently shown price momentum, utilizing tools like the Zacks Momentum Style Score to identify promising candidates [3] Group 2: Par Petroleum (PARR) Analysis - Par Petroleum (PARR) has demonstrated significant price momentum, with a four-week price change of 14.9% and a 49% gain over the past 12 weeks, indicating strong investor interest [4][5] - PARR has a beta of 1.74, suggesting it moves 74% more than the market, which aligns with the characteristics of a momentum stock [5] - The stock has a Momentum Score of B, indicating a favorable time to invest based on momentum trends [6] - PARR has received a Zacks Rank 1 (Strong Buy) due to upward revisions in earnings estimates, which typically attract more investors and drive prices higher [7] - The stock is currently trading at a Price-to-Sales ratio of 0.27, suggesting it is undervalued, as investors pay only 27 cents for each dollar of sales [7] Group 3: Additional Investment Opportunities - Besides PARR, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting additional investment opportunities [8] - The Zacks Premium Screens offer over 45 different strategies tailored to various investing styles, which can help identify potential winning stocks [9]
Why Fast-paced Mover Par Petroleum (PARR) Is a Great Choice for Value Investors