Fast-paced Momentum Stock Sleep Number (SNBR) 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 waiting for recovery, which can lead to quicker profits [1] Group 1: Momentum Investing Strategy - Momentum investors often face challenges in determining the right entry point, as stocks can lose momentum when their valuations exceed future growth potential, leading to potential losses [2] - Investing in bargain stocks that have recently shown price momentum can be a safer strategy, utilizing tools like the Zacks Momentum Style Score to identify promising stocks [3] Group 2: Stock Analysis - Sleep Number (SNBR) - Sleep Number (SNBR) has demonstrated significant price momentum, with a four-week price change of 57.8%, indicating strong investor interest [4] - Over the past 12 weeks, SNBR's stock has increased by 185.1%, and it has a beta of 1.89, suggesting it moves 89% more than the market [5] - SNBR has a Momentum Score of A, indicating a favorable time to invest based on its momentum characteristics [6] Group 3: Earnings Estimates and Valuation - An upward trend in earnings estimate revisions has contributed to SNBR's Zacks Rank 2 (Buy), as increased analyst interest typically drives stock prices higher [7] - SNBR is currently trading at a Price-to-Sales ratio of 0.18, suggesting it is undervalued at 18 cents for each dollar of sales, providing room for further price appreciation [7] Group 4: Additional Investment Opportunities - Besides SNBR, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting additional investment opportunities [8] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [9]