Shifting Tides: From “Buy Low, Sell High” to “Buy High, Sell Higher”
Investors chasing momentum stocks defy traditional wisdom. Instead of seeking out undervalued stocks, they prefer stocks with swift upward trajectories. This strategy aims to capitalize on rapid market movements for quicker returns.
Navigating the Rapids: Deciphering Fast-moving Stocks
However, investing in trending stocks carries risks. While the allure of rapid gains is strong, these stocks can lose steam if their growth potential falters. Identifying the right entry point amid this volatility is crucial to avoid downside risks.
The Sweet Spot: Identifying Bargains with Momentum
For a safer approach, investors can look at bargain stocks with recent momentum. By combining the Zacks Momentum Style Score with the ‘Fast-Paced Momentum at a Bargain’ screen, investors can pinpoint stocks that are both on the move and undervalued.
The stock Kingsoft Cloud Holdings Limited Sponsored ADR (KC) stands out among these gems, boasting impressive momentum indicators:
With a four-week price increase of 35.5%, KC exemplifies strong upward trends. It also sustained a 1.9% gain over the past 12 weeks, showcasing durability in its momentum.
Additionally, KC’s beta of 2.13 highlights its rapid pace, moving 113% more than the market in either direction.
Accelerating Momentum: Seizing the Opportunity
Backed by a Momentum Score of A, now is an optimal time to consider KC for its momentum potential. Moreover, with a Zacks Rank #2 (Buy) and positive earnings estimate revisions, KC is primed for further growth.
Remarkably, despite its swift momentum, KC trades at an attractive valuation. At a Price-to-Sales ratio of 0.96, the stock remains a bargain, offering investors a compelling opportunity.
With plenty of runway ahead, KC’s fast-paced momentum signals a stock with room to grow further.
Charting the Course: Room for Further Growth
Aside from KC, numerous other stocks meeting the ‘Fast-Paced Momentum at a Bargain’ criteria are worth exploring. By diversifying into these opportunities, investors can tap into the potential of burgeoning stocks in the market.
While momentum investing offers significant advantages, it’s essential to pair it with a robust stock-picking strategy. Utilizing tools like the Zacks Research Wizard can help backtest and fine-tune your approach for optimal results.
As the market continues to evolve, seizing opportunities like KC presents a chance to harness the potential of burgeoning stocks and ride the wave of momentum for lucrative gains in the market.
Disclaimer: The views and opinions expressed herein represent the author’s perspective and not necessarily those of Nasdaq, Inc.
