Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing - Momentum investors often face challenges in determining the right entry point, as stocks may lose momentum when their valuations exceed future growth potential [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: Redwood Trust (RWT) Analysis - Redwood Trust (RWT) has shown a price increase of 10.6% over the past four weeks, indicating growing investor interest [4] - RWT has gained 29% over the past 12 weeks, with a beta of 1.59, suggesting it moves 59% more than the market [5] - RWT has a Momentum Score of A, indicating a favorable time to invest based on momentum [6] - The stock has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which attract more investors [7] - RWT is trading at a Price-to-Sales ratio of 0.74, suggesting it is undervalued at 74 cents for each dollar of sales [7] Group 3: Additional Investment Opportunities - Besides RWT, 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 tailored to help investors find winning stock picks [9]
Here Is Why Bargain Hunters Would Love Fast-paced Mover Redwood Trust (RWT)