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Fast-paced Momentum Stock American Public Education (APEI) Is Still Trading at a Bargain
American Public EducationAmerican Public Education(US:APEI) Zacks Investment Researchยท2024-05-13 13:51

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 Strategy - Momentum investors typically avoid timing the market and instead capitalize on fast-moving stocks [1] - Identifying the right entry point for momentum stocks can be challenging, as they may lose momentum if their valuations exceed future growth potential [1] Group 2: American Public Education Inc. (APEI) Analysis - APEI has shown a significant price increase of 40.6% over the past four weeks, indicating growing investor interest [2] - Over the past 12 weeks, APEI's stock has gained 57.3%, demonstrating its ability to deliver positive returns over a longer timeframe [3] - APEI has a beta of 1.27, suggesting it moves 27% higher than the market in either direction, indicating fast-paced momentum [3] - The stock has a Momentum Score of A, suggesting it is an opportune time to invest [3] Group 3: Earnings Estimates and Valuation - APEI has received upward revisions in earnings estimates, earning a Zacks Rank 2 (Buy), which is associated with strong momentum effects [4] - The stock is currently trading at a Price-to-Sales ratio of 0.52, indicating it is attractively priced at 52 cents for each dollar of sales [4] - APEI appears to have significant potential for further price appreciation while maintaining a reasonable valuation [5]