Momentum investors often seek out stocks that are rapidly gaining value, believing that “buying high and selling higher” is the key to fast profits. However, identifying the right entry point for these high-flying stocks can be tricky. Their momentum can quickly fade if their future growth potential doesn’t justify their inflated valuation.
While the Zacks Momentum Style Score is helpful in identifying promising momentum stocks, the “Fast-Paced Momentum at a Bargain” screen aims to spot stocks that are both rapidly gaining value and attractively priced. One stock currently passing this screen is TransAct Technologies Incorporated (TACT).
Here’s why TACT is a compelling investment:
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Strong Price Momentum:
TACT has demonstrated impressive price momentum in recent weeks. The stock has gained 9.9% over the past four weeks and 17.1% over the past 12 weeks, reflecting growing investor interest.*
Fast-Paced Growth:
TACT’s beta of 1.72 suggests that the stock is highly sensitive to market movements, meaning it tends to move more aggressively than the overall market. This indicates a potential for fast-paced growth.*
Favorable Ratings:
TACT has earned a Zacks Rank #1 (Strong Buy) and a Momentum Score of A. This signifies that analysts are optimistic about the stock’s future prospects and that it is well-positioned for further gains.*
Reasonable Valuation:
Despite its strong momentum, TACT is still attractively priced. Its Price-to-Sales ratio of 0.78 indicates that investors are paying only 78 cents for each dollar of sales, suggesting significant upside potential.TACT’s combination of fast-paced momentum, favorable ratings, and a reasonable valuation makes it a strong candidate for momentum investors seeking to capitalize on rapid growth opportunities.
