Despite Fast-paced Momentum, Enhabit (EHAB) Is Still a Bargain Stock
EnhabitEnhabit(US:EHAB) ZACKS·2026-02-12 14:55

Group 1 - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] - Fast-moving stocks can lose momentum if their valuations exceed future growth potential, leading to potential risks for investors [2] - A safer investment strategy involves identifying bargain stocks with recent price momentum, utilizing tools like the Zacks Momentum Style Score [3] Group 2 - Enhabit (EHAB) is highlighted as a strong candidate for momentum investing, with a recent price increase of 4.1% over the past four weeks [4] - EHAB has demonstrated significant momentum, gaining 40.7% over the past 12 weeks, and has a beta of 1.66, indicating higher volatility compared to the market [5] - EHAB holds a Momentum Score of B, suggesting it is an opportune time to invest in the stock [6] Group 3 - An upward trend in earnings estimate revisions has contributed to EHAB's Zacks Rank 2 (Buy), indicating strong investor interest and potential price appreciation [7] - EHAB is trading at a favorable Price-to-Sales ratio of 0.54, suggesting it is undervalued relative to its sales [7] - The stock appears to have significant growth potential while maintaining a reasonable valuation [8]