Fast-paced Momentum Stock Enhabit (EHAB) Is Still Trading at a Bargain

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 involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify promising candidates [3] Group 2: Case Study - Enhabit (EHAB) - Enhabit (EHAB) has shown a price increase of 1.6% over the past four weeks, indicating growing investor interest [4] - The stock has gained 10.7% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [5] - EHAB has a beta of 1.69, suggesting it moves 69% more than the market in either direction, indicating fast-paced momentum [5] Group 3: Valuation and Earnings Estimates - EHAB has a Momentum Score of B, suggesting it is an opportune time to invest in the stock [6] - The stock has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which typically attract more investor interest [7] - EHAB is trading at a Price-to-Sales ratio of 0.42, indicating it is relatively undervalued, as investors pay only 42 cents for each dollar of sales [7] Group 4: Additional Opportunities - Besides EHAB, 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 stock picks based on various investing styles [9]