Stock of Deluxe (DLX)

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Fast-paced Momentum Stock Deluxe (DLX) Is Still Trading at a Bargain
ZACKSยท 2025-08-14 13:50
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 often face challenges in determining the right entry point for fast-moving stocks, which can lose momentum if future growth does not justify high valuations [2] - Investing in bargain stocks that have recently shown price momentum can be a safer strategy, utilizing tools like the Zacks Momentum Style Score to identify potential opportunities [3] Group 2: Deluxe (DLX) Stock Analysis - Deluxe (DLX) has shown significant price momentum with a four-week price change of 21.5% and a 36.9% increase over the past 12 weeks, indicating strong investor interest [4][5] - DLX has a beta of 1.49, suggesting it moves 49% more than the market, which aligns with the characteristics of a momentum stock [5] - The stock has a Momentum Score of B, indicating a favorable time to invest based on momentum trends [6] Group 3: Earnings and Valuation - DLX has received a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which typically attract more investor interest and drive prices higher [7] - The stock is currently trading at a Price-to-Sales ratio of 0.42, suggesting it is undervalued, as investors pay only 42 cents for each dollar of sales [7] Group 4: Additional Investment Opportunities - Besides DLX, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting additional investment opportunities [8] - The Zacks Premium Screens offer over 45 different strategies to help investors identify potential winning stocks based on their personal investing styles [9]