Diversified Healthcare (DHC) Is Attractively Priced Despite Fast-paced Momentum

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: Diversified Healthcare (DHC) Analysis - DHC has recently gained investor interest, reflected in a price increase of 0.1% over the past four weeks, positioning it as a strong candidate for momentum investing [4] - The stock has demonstrated significant performance, gaining 16.9% over the past 12 weeks, with a high beta of 2.61 indicating it moves 161% more than the market [5] - DHC holds a Momentum Score of A, suggesting it is an opportune time to invest in the stock for potential gains [6] Group 3: Earnings Estimates and Valuation - An upward trend in earnings estimate revisions has contributed to DHC's Zacks Rank 2 (Buy), indicating strong momentum among top-ranked stocks [7] - DHC is trading at a Price-to-Sales ratio of 0.67, suggesting it is undervalued, as investors pay only 67 cents for each dollar of sales [7] Group 4: Additional Investment Opportunities - Besides DHC, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - Various Zacks Premium Screens are available to assist in identifying winning stock picks based on different investing styles [9]