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 involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify such opportunities [3] Group 2: Victoria's Secret (VSCO) Analysis - Victoria's Secret (VSCO) has shown significant recent price momentum, with a four-week price change of 35%, indicating growing investor interest [4] - Over the past 12 weeks, VSCO's stock has gained 86%, with a beta of 2.24, suggesting it moves 124% higher than the market in either direction [5] - VSCO has a Momentum Score of B, indicating a favorable time to invest based on momentum [6] Group 3: Earnings Estimates and Valuation - An upward trend in earnings estimate revisions has contributed to VSCO earning a Zacks Rank 1 (Strong Buy), as analysts raising estimates attract more investor interest [7] - VSCO is 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 Investment Opportunities - Besides VSCO, 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 winning stock picks based on various investing styles [9]
Here Is Why Bargain Hunters Would Love Fast-paced Mover Victoria's Secret (VSCO)