Why Fast-paced Mover Kennametal (KMT) Is a Great Choice for Value Investors

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 when their valuations exceed future growth potential, leading to potential losses for investors [2] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify such opportunities [3] Group 2: Kennametal (KMT) Analysis - Kennametal (KMT) has shown significant recent price momentum, with a four-week price change of 17.4%, indicating growing investor interest [4] - KMT has gained 17.6% over the past 12 weeks, with a beta of 1.5, suggesting it moves 50% more than the market in either direction [5] - KMT holds a Momentum Score of A, indicating a favorable entry point for investors looking to capitalize on its momentum [6] Group 3: Earnings Estimates and Valuation - KMT has seen upward revisions in earnings estimates, earning a Zacks Rank 2 (Buy), which is associated with strong momentum effects [7] - The stock is trading at a Price-to-Sales ratio of 0.97, suggesting it is undervalued, as investors pay only 97 cents for each dollar of sales [7] Group 4: Additional Opportunities - Besides KMT, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - The Zacks Premium Screens offer over 45 different strategies to help identify winning stock picks based on various investing styles [9]