Despite Fast-paced Momentum, Controladora Vuela (VLRS) Is Still a Bargain Stock

Core Insights - Momentum investing focuses on "buying high and selling higher" rather than the traditional "buying low and selling high" approach [1] - Identifying the right entry point for fast-moving stocks can be challenging, as they may lose momentum if future growth does not justify their high valuations [2] Group 1: Momentum Investing Strategy - 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] - Controladora Vuela (VLRS) is highlighted as a strong candidate, showing a four-week price change of 0.5% and a 13.5% gain over the past 12 weeks, indicating growing investor interest [4][5] - VLRS has a beta of 2.06, suggesting it moves 106% higher than the market, demonstrating its fast-paced momentum [5] Group 2: Valuation and Earnings Estimates - VLRS has a Momentum Score of B, indicating a favorable time to invest based on its momentum characteristics [6] - The stock has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which typically attract more investors and drive prices higher [7] - VLRS is trading at a Price-to-Sales ratio of 0.26, suggesting it is undervalued, as investors pay only 26 cents for each dollar of sales [7] Group 3: Additional Opportunities - Besides VLRS, 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 potential winning stocks based on various investing styles [9]