Core Insights - Momentum investors focus on "buying high and selling higher" rather than traditional strategies of buying low and waiting for recovery [1] - Fast-moving stocks can lose momentum if their valuations exceed future growth potential, leading to potential risks for investors [2] Group 1: Momentum Investing - A safer approach to momentum investing involves targeting bargain stocks that exhibit recent price momentum [3] - Kaiser Aluminum (KALU) has shown a price increase of 16.8% over the past four weeks, indicating growing investor interest [4] - KALU has gained 14.6% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [5] Group 2: Stock Performance Metrics - KALU has a beta of 1.58, suggesting it moves 58% higher than the market in either direction, indicating fast-paced momentum [5] - KALU has a Momentum Score of B, suggesting it is an opportune time to invest in the stock [6] - The stock has a Zacks Rank 1 (Strong Buy) due to upward revisions in earnings estimates, which attract more investor interest [7] Group 3: Valuation Metrics - KALU is trading at a Price-to-Sales ratio of 0.46, indicating it is relatively cheap, as investors pay only 46 cents for each dollar of sales [7] - The favorable valuation metrics suggest that KALU has significant room for growth at a fast pace [8] Group 4: Additional Opportunities - Besides KALU, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting additional investment opportunities [8] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [9]
Why Fast-paced Mover Kaiser (KALU) Is a Great Choice for Value Investors