Fast-paced Momentum Stock Commercial Metals (CMC) 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" to maximize returns in a shorter time frame [1] Group 1: Momentum Investing Strategy - Momentum investors often face challenges in determining the right entry point for fast-moving stocks, which can lose momentum if future growth does not justify high valuations [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: Commercial Metals (CMC) Analysis - Commercial Metals (CMC) has shown a four-week price change of 7.5%, indicating growing investor interest and positioning it as a strong candidate for momentum investing [4] - CMC has gained 7.7% over the past 12 weeks, with a beta of 1.49, suggesting it moves 49% more than the market in either direction, demonstrating its potential for sustained positive returns [5] - CMC holds a Momentum Score of B, indicating a favorable time to invest, and has achieved a Zacks Rank 1 (Strong Buy) due to upward revisions in earnings estimates [6][7] Group 3: Valuation Metrics - CMC is trading at a Price-to-Sales ratio of 0.91, suggesting it is undervalued as investors pay only 91 cents for each dollar of sales, indicating significant room for growth [7] - The combination of fast-paced momentum and reasonable valuation metrics positions CMC as a compelling investment opportunity [8]