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 may involve investing in bargain stocks that have recently shown price momentum, utilizing tools like the Zacks Momentum Style Score to identify such opportunities [3] Group 2: Seacor Marine (SMHI) Analysis - Seacor Marine (SMHI) has shown a four-week price change of 6.9%, indicating strong investor interest and positioning it well for momentum investing [4] - Over the past 12 weeks, SMHI has gained 6.9%, with a beta of 1.34, suggesting it moves 34% more than the market, indicating fast-paced momentum [5] - SMHI has a Momentum Score of A, suggesting it is an opportune time to invest in the stock for potential success [6] Group 3: Earnings Estimates and Valuation - SMHI has received a Zacks Rank 1 (Strong Buy) due to upward revisions in earnings estimates, which typically attract more investor interest and drive stock prices higher [7] - The stock is currently trading at a Price-to-Sales ratio of 0.75, indicating it is reasonably valued at 75 cents for each dollar of sales, providing room for growth [7] Group 4: Additional Investment Opportunities - Besides SMHI, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, suggesting further investment opportunities [8] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [9]
Seacor Marine (SMHI) Is Attractively Priced Despite Fast-paced Momentum