Fast-paced Momentum Stock CarMax (KMX) Is Still Trading at a Bargain

Group 1 - Momentum investing focuses on "buying high and selling higher" rather than traditional "buying low and selling high" strategies [1] - Fast-moving trending stocks can lose momentum if their future growth does not justify their high valuations, leading to potential downside risks for investors [2] - A safer investment strategy involves identifying bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score [3] Group 2 - CarMax (KMX) is highlighted as a strong candidate for momentum investing, with a recent price increase of 4.3% over the past four weeks [4] - KMX has shown a significant price gain of 15.5% over the past 12 weeks, indicating strong momentum, with a beta of 1.71, suggesting it moves 71% more than the market [5] - KMX 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 - KMX is trading at a Price-to-Sales ratio of 0.50, suggesting it is undervalued, as investors pay only 50 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, providing further investment opportunities [8]