Why Fast-paced Mover Encore Capital Group (ECPG) Is a Great Choice for Value Investors

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 Strategy - Momentum investing can be risky as stocks may lose momentum if future growth does not justify high valuations [1] - A safer approach is to invest in bargain stocks that exhibit recent price momentum, identified through the Zacks Momentum Style Score [2] Group 2: Encore Capital Group (ECPG) Analysis - Encore Capital Group (ECPG) has shown a price increase of 23.7% over the past four weeks, indicating growing investor interest [3] - ECPG has gained 29.1% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [4] - The stock has a beta of 1.35, suggesting it moves 35% higher than the market in either direction, indicating fast-paced momentum [4] - ECPG has a Momentum Score of A, suggesting it is an opportune time to invest in the stock [5] - The stock has a Zacks Rank 1 (Strong Buy) due to upward revisions in earnings estimates, which attract more investors [6] - ECPG is trading at a Price-to-Sales ratio of 0.83, indicating it is reasonably valued at 83 cents for each dollar of sales [6] Group 3: Investment Opportunities - ECPG is highlighted as a strong candidate for investment, with potential for further price appreciation [7] - There are additional stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, suggesting more investment opportunities [7] - Zacks offers over 45 Premium Screens to help identify winning stock picks based on various investing styles [8]