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Despite Fast-paced Momentum, Outbrain (OB) Is Still a Bargain Stock
OBOutbrain (OB) ZACKS·2025-02-17 14:51

Core Viewpoint - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investing can be risky as stocks may lose momentum when their valuations exceed future growth potential [1] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, identified through the Zacks Momentum Style Score [2] Group 2: Outbrain Inc. (OB) Analysis - Outbrain Inc. (OB) has shown a price increase of 4.2% over the past four weeks, indicating growing investor interest [3] - OB has gained 33.5% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [4] - The stock has a beta of 1.4, suggesting it moves 40% more than the market in either direction [4] - OB has a Momentum Score of A, indicating a favorable time to invest [5] - The stock has a Zacks Rank 1 (Strong Buy) due to upward revisions in earnings estimates, which attract more investors [6] - OB is trading at a Price-to-Sales ratio of 0.37, indicating it is reasonably valued at 37 cents for each dollar of sales [6] Group 3: Additional Investment Opportunities - Besides OB, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, suggesting further investment opportunities [7] - Zacks offers over 45 Premium Screens tailored to different investing styles, aiding in stock selection [8]