Nine Energy (NINE), despite the fast-paced moment, is attractively priced
Momentum investors aren’t likely to time the market, or “buy low and then sell high”. They don’t want to bet on low-quality stocks or wait for them to recover. They believe that “buying high, selling higher” is the only way to make more money faster.
It’s hard to resist betting on trending stocks that are moving quickly. It can be difficult to determine the best entry point. These stocks often lose momentum when their valuation rises above their future growth potential. Investors can end up buying expensive shares that have little or no upside. It is possible to be too dependent on momentum.
It is safer to invest in bargain stocks with recent price momentum. The Zacks Momentum Style Score, which looks closely at trends in earnings or stock prices, can be very useful in identifying great momentum stocks. However, our ‘Fast Paced Momentum At a Bargain screen is helpful in spotting attractively priced stocks that are still moving quickly.
Nine Energy Service (NINE), one of many great candidates, made it to the screen. This stock is great for many reasons, but these are the most important.
Investors are increasingly interested in stock stocks, as evidenced by recent price momentum. The stock of this oilfield service company is in a strong position with a price change of 17.4% over four weeks.
Any stock can see a sharp rise in price, but it takes a momentum player to provide positive returns over a longer time period. NINE also meets this criterion, with the stock’s gain of 263.7% over the last 12 weeks.
NINE’s momentum is also fast-paced with a beta of 3.67. This means that the stock is moving 267% faster than the market in any direction.
This price performance is not surprising, as NINE has a Momentum Score (B) which means that you should enter the stock at the right time in order to capitalize on the momentum for the greatest chance of success.
NINE has been awarded a Zacks Rank #1 (Strong buy) due to its positive Momentum Score and an upward trend in earnings estimates revisions. Research shows that Zacks Rank #1 stocks and #2 stocks have strong momentum effects. 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 >>>>
NINE trades at a fair valuation despite its fast-paced momentum features. The stock appears cheap in terms of price-to-sales ratio, which is one of most valuable valuation metrics. NINE currently trades at 0.77x its sales. Investors will pay 77 cents per dollar for NINE.
NINE appears to have plenty to run and that they can do so at a very fast pace.
NINE is not the only stock that passes our Fast-Paced Momentum At a Bargain screen. There are many other stocks. They may be worth your consideration. Then, start searching 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 have the option to choose from more than 45 Zacks Premium screens that are strategically designed to beat market prices.
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Nine Energy Service, Inc. (NINE) : Free Stock Analysis Report