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Dynamic investors sometimes don’t time the market and don’t “buy low and sell better. “In other words, they avoid betting on reasonable stocks and waiting a long time for them to recover. Instead, “buying the best and promoting the best” is the way to make a lot more money in less time.
Who doesn’t like betting on fast-moving trending stocks? But determining the right entry point isn’t easy. Often, these stocks lose momentum once their valuation moves ahead of their future growth potential. In such a situation, investors find themselves loaded up on expensive shares with limited to no upside or even a downside. So, going all-in on momentum could be risky at times.
A safer approach could be investing in bargain stocks with recent price momentum. While the Zacks Momentum Style Score (part of the Zacks Style Scores system) helps identify great momentum stocks by paying close attention to trends in a stock’s price or earnings, our ‘Fast-Paced Momentum at a Bargain’ screen comes handy in spotting fast-moving stocks that are still attractively priced.
General Motors Company (GM) is one of the many big contenders that have managed to get off the screen. While there are many reasons why this series is a great choice, here are the main ones:
Investors’ growing interest in a stock is reflected in its recent price increase. A price change of 8.1% over the past four weeks positions the stock of this company well in this regard.
While any stock can generate an increase in value in a short period of time, it takes a true dynamic player to generate positive returns over a longer period of time. GM also meets this criterion, as the stock has gained 44. 9% over the past 12 weeks.
Moreover, GM’s momentum is swift, as the stock currently has a beta of 1. 49, indicating that the stock is trading 49% above the market in either direction.
Given this value movement, it’s no surprise that GM has a Momentum score of A, indicating that it’s a good time to go public and build on momentum with the highest likelihood of success.
In addition to a favorable Momentum Score, an upward trend in earnings estimate revisions has helped GM earn a Zacks Rank #2 (Buy). Our studies show that the momentum effect is strong between Zacks Rank #1 and #2 stocks. In fact, as coverage analysts create their earnings estimates for a stock, more investors become interested in it, helping its value continue to rise. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here >>>>
More importantly, despite its dynamic characteristics, GM trades at a moderate valuation. In terms of the price-to-sales ratio, which is considered one of the most productive valuation indicators, inventory now looks cheap. GM has lately traded at 0. 26 times sales. In other words, investors only have to pay 26 cents for every dollar of sales.
So, it turns out that GM has a lot of wiggle room, and at an immediate pace, too.
In addition to GM, there are several other stocks that currently pass through our ‘Fast-Paced Momentum at a Bargain’ screen. You may consider investing in them and start looking for the newest stocks that fit these criteria.
This is rarely the only screen that can help you find your next winning stock pick. Depending on your personal investment style, you can choose from over forty-five Zacks Premium presentations strategically created to beat you over the market.
Keep in mind, however, that the key to a successful stock-picking strategy is to ensure that it has produced successful effects in the past. You can do this seamlessly with Zacks’ research assistant. In addition to allowing you to verify the efectividad. de your strategy, the program includes some of our most effective stock picking strategies.
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General Motors Company (GM): Free Stock Analysis Report
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