Momentum investing goes against the Wall Street cliche "buy low and sell high." In this investment technique, investors avoid speculating on cheap stocks and waiting for them to recover. Instead, they believe "buying high and selling higher." can produce more money faster.
Who doesn't appreciate betting on trending stocks? Finding the right entry point is difficult. These stocks sometimes lose momentum when their valuation exceeds their growth potential. Investors are saddled with costly equities with little upside or downside. Investing in momentum might be risky.
Recent price momentum may make cheap stocks safer to buy in. The Zacks Momentum Style Score, which tracks price and earnings trends, is useful for finding momentum stocks, but our 'Fast-Paced Momentum at a Bargain' screen helps find fast-moving stocks at low prices.
The screen selected numerous great candidates, including PVH (PVH). There are several reasons to buy this stock, but these are the most important: A stock's recent price momentum indicates investor interest. This Calvin Klein and Tommy Hilfiger owner's stock is well-positioned with a 0.7% four-week price change.
Any stock can jump in price, but only a momentum player can provide long-term gains. PVH also fits this condition, rising 10% in 12 weeks. With a beta of 2.2, PVH is moving quickly. This means the stock rises 120% above the market in either direction. Given this price performance, PVH has a Momentum Score of B, indicating that now is the best time to enter the company to capitalize on momentum with the highest possibility of success.
A positive Momentum Score and rising earnings estimate revisions helped PVH earn a Zacks Rank #2 (Buy). Our research reveals that Zacks Rank #1 and #2 stocks have a high momentum effect. As covering analysts improve their profit projections for a stock,
Best of all, PVH is priced fairly despite its quick velocity. In terms of Price-to-Sales ratio, one of the best valuation indicators, the stock seems cheap. PVH trades at 0.84 times sales. For every dollar of sales, investors pay 84 cents. Other stocks are passing via our 'Fast-Paced Momentum at a Bargain' screen besides PVH. You might invest in them and find the latest stocks that meet these criteria.
You can find your next winning stock pick on other screens. You can choose from over 45 Zacks Premium Screens designed to beat the market based on your investing approach
Remember that a successful stock-picking approach must have yielded profits in the past. With the Zacks Research Wizard, that's easy. In addition to letting you backtest your technique, the application includes our best stock-picking strategies.
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