Why Fast-paced Mover Wayfair (W) Is a Great Choice for Value Investors

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than the traditional "buying low and selling high" strategy, aiming for quicker profits through trending stocks [1] Group 1: Momentum Investing Strategy - Momentum investing can be risky as stocks may lose momentum when their growth potential does not justify high valuations [1] - A safer approach is to invest in bargain stocks that exhibit recent price momentum, identified through tools like the Zacks Momentum Style Score [2] Group 2: Wayfair (W) Stock Analysis - Wayfair (W) has shown a four-week price change of 14.8%, indicating growing investor interest [2] - The stock gained 8.7% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [3] - Wayfair has a high beta of 3.32, suggesting it moves 232% higher than the market in either direction, indicating fast-paced momentum [3] Group 3: Earnings Estimates and Valuation - Wayfair has a Momentum Score of A, suggesting it is an opportune time to invest in the stock [3] - The stock has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which typically attract more investors [4] - Wayfair is trading at a Price-to-Sales ratio of 0.57, indicating it is relatively cheap at present, as investors pay only 57 cents for each dollar of sales [4] Group 4: Additional Investment Opportunities - Besides Wayfair, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, which could be considered for investment [5] - The Zacks Premium Screens offer over 45 strategies to help identify potential winning stocks based on various investing styles [5]