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Why Fast-paced Mover Cemig (CIG) Is a Great Choice for Value Investors
CIGCEMIG(CIG) ZACKS·2024-09-25 13:50

Group 1 - Momentum investing focuses on "buying high and selling higher" rather than traditional strategies of "buying low and selling high" [1] - Fast-moving trending stocks can be risky if their valuations exceed future growth potential, leading to potential losses for investors [2] - Investing in bargain stocks that have recently shown price momentum can be a safer strategy, utilizing tools like the Zacks Momentum Style Score [3] Group 2 - Cemig (CIG) is highlighted as a strong candidate for momentum investing, with a recent price increase of 1.5% over the past four weeks [4] - CIG has gained 17.1% over the past 12 weeks, indicating strong momentum, with a beta of 1.29, suggesting it moves 29% more than the market [5] - CIG has a Momentum Score of B, indicating a favorable time to invest, and it has a Zacks Rank 2 (Buy) due to positive earnings estimate revisions [6][7] Group 3 - CIG is trading at a Price-to-Sales ratio of 0.78, suggesting it is undervalued, as investors pay only 78 cents for each dollar of sales [7] - The stock has significant potential for further price appreciation, supported by its fast-paced momentum characteristics [8] - There are additional stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, indicating more investment opportunities [8]