loanDepot (LDI) Shows Fast-paced Momentum But Is Still a Bargain Stock

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investors often face challenges in determining the right entry point, as stocks may lose momentum when their valuations exceed future growth potential [2] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify such opportunities [3] Group 2: Company Spotlight - loanDepot (LDI) - loanDepot (LDI) has shown significant price movement, with a 39.1% increase over the past four weeks, indicating growing investor interest [4] - The stock has also gained 2.9% over the past 12 weeks, with a high beta of 3.46, suggesting it moves 246% more than the market [5] - LDI has a Momentum Score of A, indicating a favorable time to invest based on its momentum characteristics [6] Group 3: Earnings and Valuation - LDI has received upward revisions in earnings estimates, earning a Zacks Rank 2 (Buy), which is associated with strong momentum effects [7] - The stock is currently trading at a Price-to-Sales ratio of 0.89, suggesting it is undervalued at 89 cents for each dollar of sales [7] Group 4: Additional Opportunities - Besides LDI, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [9]