Here Are Some Reasons Bargain Hunters Would Like Fast-paced Nexa Resources S.A.
Momentum investing is basically the opposite of Wall Street’s tried-and-true Wall Street adage, “buy low, sell high.” Investors who follow this investing strategy avoid betting on cheap stocks or waiting for them to recover. They believe that buying high and selling high can help you make more money in a shorter time.
Although everyone enjoys placing bets on stocks that are trending quickly, it isn’t always easy to identify the best entry point. These stocks lose momentum when their future growth potential is not worth the high valuation. Investors can end up with shares that offer little or no upside, or worse, a downside. It is possible to bet on stocks just by looking at their traditional momentum parameters. This can make it risky.
You might be more safe investing in bargain stocks that are experiencing price momentum. Zacks Momentum Style Score (part the Zacks Style Scores) is useful for identifying great momentum stock. Our ‘Fast -Paced Momentum @ a Bargain’ screen helps you spot fast-moving stocks at attractive prices.
Nexa Resources S.A. (NEXA), one of many great candidates, made it through the screening. There are many reasons this stock is a great investment, but here are the top:
Recent price momentum is a sign of growing investor interest in stocks. This stock is well-positioned with a 7.1% price change over the past four weeks.
Although any stock can experience a price spike for a brief period of time, it takes a true momentum player to produce positive returns over a longer time. NEXA has also met this criterion with a 6.1% increase in price over the past twelve weeks.
Moreover, NEXA has a fast-paced momentum, with a beta of 1.44. This means that the stock moves 44% faster than the market in either direction.
Given the price performance, it’s no surprise that NEXA has a Momentum score of A. This indicates that the time is right to buy the stock in order to capitalize on the momentum.
NEXA earned a Zacks Rank 1 (Strong Buy) thanks to a positive Momentum Score. Also, NEXA saw an upward trend with earnings estimate revisions. Our research has shown that Zacks rank #1 and #2 stocks are affected by the momentum-effect. Because as analysts increase their earnings estimates for a stock they attract more investors, which helps to maintain its price. You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here >>>>
Despite its fast-paced momentum, NEXA trades at a fair valuation. The stock is currently trading at a very low price based on the Price-to-Sales ratio. This is one of the most important valuation metrics. Currently, NEXA trades at 0.27 times its annual sales. Investors will pay just 27 cents per dollar for NEXA sales.
NEXA has plenty of space and can run at a quick pace.
NEXA is just one of the stocks currently passing through our Fast-Paced Mobility at a Deal’ screen. They may be worth your consideration. Then, start looking for the latest stocks that match these criteria.
You may not find the right stock to invest in, but this screen could be a good starting point. You can choose from 45 Zacks Premium Screens, which are designed to beat the market based on your investment style.
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Nexa Resources S.A. (NEXA) : Free Stock Analysis Report