MOmentum investing is essentially an exception to the idea of “buying low and selling high”. Investors who follow this style of investing are generally not interested in betting on cheap stocks and waiting a long time for their recovery. Instead, they believe that “buying and selling for more” is the way to make a lot more money in less time.
Who doesn’t like to bet on fast trending stocks? But determining the right entry point is not easy. Often, these stocks lose momentum once their valuation exceeds their potential for future growth. In such a situation, investors find themselves loaded on expensive stocks with little or no benefit or even a downside. So going all-in on the momentum could be risky at times.
A safer approach might be to invest in low priced stocks with recent price momentum. While the Zacks Momentum Style Score (which is part of the Zacks style sheet music system) allows you to identify stocks with strong momentum by paying particular attention to trends in the price or profits of a stock, our “ Accelerated momentum during a good deal ” screen is useful for spotting evolving stocks fast which always have an attractive price.
There are several actions currently going through the screen and Modine (MOD) is one of them. Here are the main reasons why this stock is a great candidate.
The growing interest of investors in a stock is reflected in its recent price increase. A price change of 8.1% over the past four weeks positions this manufacturer’s inventory of heating and cooling products well in this regard.
While any stock can experience a price spike for a short time, it takes a real momentum player to deliver positive returns for a longer time. MOD also meets this criterion, with the stock having gained 17% in the past 12 weeks.
Additionally, the MOD’s momentum is rapid, as the stock currently has a beta of 2.79. This indicates that the stock is moving 179% higher than the market in either direction.
Given this price performance, it’s no surprise that MOD has a Momentum Score of B, indicating that now is the right time to get into the action to take advantage of the momentum with the greatest likelihood. of success.
In addition to a favorable Momentum Score, an upward trend in Revisions to Income Estimates helped MOD achieve a Zacks # 2 (Buy) rank. Our research shows that the dynamic effect is quite strong among Zacks Tier 1 and 2 stocks. Indeed, as hedge analysts increase their earnings estimates for a stock, more and more investors are interested in it, helping its price race to follow. You can see the full list of current Zacks Rank # 1 (Strong Buy) stocks here >>>>
More importantly, despite its rapid swing characteristics, MOD is trading at a reasonable valuation. In terms of the price-to-sell ratio, which is considered one of the best indicators of valuation, the stock looks pretty cheap now. MOD is currently trading at 0.50 times its sales. In other words, investors only have to pay 50 cents for every dollar in sales.
So MOD seems to have a lot of room to function, and that too at a fast pace.
In addition to the MOD, several other actions are currently going through our “ Fast-Paced Momentum at a Bargain ” screen. You can consider investing in it and start looking for the most recent stocks that meet these criteria.
This isn’t the only screen that could help you find your next winning stock pick. Depending on your personal investing style, you can choose from over 45 Zacks Premium screens which are strategically created to beat the market.
However, keep in mind that the key to a successful stock selection strategy is to ensure that it has produced profitable results in the past. You can easily do this with the help of Zacks Search Assistant. In addition to allowing you to re-test the effectiveness of your strategy, the program includes some of our most successful stock selection strategies.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.