Fast-paced Momentum Stock Norsk Hydro ASA (NHYDY) Is Still Trading at a Bargain

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: Case Study - Norsk Hydro ASA (NHYDY) - Norsk Hydro ASA (NHYDY) has demonstrated recent price momentum with a four-week price change of 2%, indicating growing investor interest [4] - Over the past 12 weeks, NHYDY's stock has gained 10.1%, and it has a beta of 1.46, suggesting it moves 46% more than the market [5] - NHYDY has a Momentum Score of A, indicating a favorable entry point for investors looking to capitalize on its momentum [6] Group 3: Earnings Estimates and Valuation - NHYDY has seen upward revisions in earnings estimates, earning a Zacks Rank 2 (Buy), which is associated with strong momentum effects [7] - The stock is currently trading at a Price-to-Sales ratio of 0.68, suggesting it is undervalued, as investors pay only 68 cents for each dollar of sales [7] Group 4: Additional Opportunities - NHYDY is not the only stock that fits the "Fast-Paced Momentum at a Bargain" criteria; there are several other stocks that investors may consider [8] - Zacks offers over 45 Premium Screens to help investors find winning stock picks based on their investing styles [9]