Core Viewpoint - Momentum investing focuses on "buying high and selling higher," rather than traditional strategies of buying low and waiting for recovery [1][2] Group 1: Momentum Investing Strategy - Momentum investors often face challenges in determining the right entry point, as stocks can 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: Encore Capital Group (ECPG) Analysis - Encore Capital Group (ECPG) has shown significant recent price momentum, with a four-week price change of 21.6%, indicating growing investor interest [4] - ECPG has gained 22.9% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [5] - The stock has a beta of 1.43, suggesting it moves 43% more than the market in either direction, indicating fast-paced momentum [5] - ECPG holds a Momentum Score of B, suggesting it is an opportune time to invest in the stock [6] - The stock has a Zacks Rank 1 (Strong Buy) due to upward revisions in earnings estimates, which typically attract more investor interest [7] - ECPG is trading at a Price-to-Sales ratio of 0.73, indicating it is relatively undervalued, as investors pay only 73 cents for each dollar of sales [7] Group 3: Additional Investment Opportunities - Besides ECPG, 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]

Momentum investing is essentially the opposite of the tried-and-tested Wall Street adage -- "buy low and sell high." Investors following this investing style typically avoid betting on cheap stocks and waiting long for them to recover. They believe instead that one could make far more money in lesser time by "buying high and selling higher."Everyone likes betting on fast-moving trending stocks, but it isn't easy to determine the right entry point. These stocks often lose momentum when their future growth po ...

Core Viewpoint - Encore Capital Group (ECPG) has received a Zacks Rank 2 (Buy) upgrade, indicating a positive trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of changing earnings estimates in determining stock price movements, making it a valuable tool for investors [2][4]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in stock price movements [4]. Company Performance and Outlook - The upgrade reflects an improvement in Encore Capital Group's underlying business, suggesting that investors may respond positively by driving the stock price higher [5]. - The Zacks Consensus Estimate for Encore Capital Group has increased by 23.6% over the past three months, with expected earnings of $8.31 per share for the fiscal year ending December 2025, indicating no year-over-year change [8]. Zacks Rank System - The Zacks Rank system categorizes stocks based on earnings estimate revisions, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7]. - Stocks in the top 20% of Zacks-covered stocks, like Encore Capital Group with its Zacks Rank 2, are positioned for potential market-beating returns in the near term [10].

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 involves investing in bargain stocks that exhibit recent price momentum [2] Group 2: Encore Capital Group (ECPG) Analysis - ECPG has shown a price increase of 4.1% over the past four weeks, indicating growing investor interest [3] - The stock gained 47.3% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [4] - ECPG has a beta of 1.59, suggesting it moves 59% higher than the market in either direction [4] - ECPG has a Momentum Score of B, indicating a favorable time to invest [5] - The stock has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which attract more investors [6] - ECPG is trading at a Price-to-Sales ratio of 0.68, indicating it is relatively cheap at present [6] - ECPG appears to have significant potential for further price appreciation [7] Group 3: Additional Investment Opportunities - Other stocks also meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, suggesting further investment opportunities [7] - Zacks offers over 45 Premium Screens tailored to different investing styles to help identify winning stock picks [8]