Why Fast-paced Mover ThredUp (TDUP) Is a Great Choice for Value Investors

Core Viewpoint - Momentum investing focuses on buying stocks that are trending upwards rather than undervalued stocks, with the belief that one can achieve higher returns in a shorter time frame [1] Group 1: Momentum Investing Strategy - Momentum investing is characterized by the approach of "buying high and selling higher," contrasting with the traditional "buy low and sell high" strategy [1] - Identifying the right entry point for momentum stocks can be challenging, as these stocks may lose momentum if their valuations exceed future growth potential [1] Group 2: ThredUp (TDUP) Analysis - ThredUp (TDUP) has shown significant price momentum, with a four-week price change of 40.4%, indicating growing investor interest [3] - Over the past 12 weeks, TDUP's stock price has increased by 134.7%, demonstrating its ability to deliver positive returns over a longer time frame [4] - TDUP has a beta of 1.75, suggesting that it moves 75% more than the market in either direction, indicating fast-paced momentum [4] Group 3: Valuation and Earnings Estimates - TDUP has a Momentum Score of B, suggesting it is an opportune time to invest in the stock to capitalize on its momentum [5] - The stock has a Zacks Rank 2 (Buy) due to an upward trend in earnings estimate revisions, which typically attracts more investors [6] - TDUP is trading at a Price-to-Sales ratio of 0.79, indicating it is relatively cheap, as investors pay only 79 cents for each dollar of sales [6] Group 4: Additional Investment Opportunities - Besides TDUP, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting additional investment opportunities [7] - Zacks offers over 45 Premium Screens tailored to different investing styles, which can help identify potential winning stocks [8]