Brookdale (BKD) Is Attractively Priced Despite Fast-paced Momentum

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 Characteristics - Momentum investing can be risky as stocks may lose momentum when their valuations exceed future growth potential, leading to potential losses for investors [2] - A safer approach may involve investing in bargain stocks that have recently shown price momentum, utilizing tools like the Zacks Momentum Style Score to identify such opportunities [3] Group 2: Brookdale Senior Living (BKD) Analysis - Brookdale Senior Living (BKD) has shown a four-week price change of 11%, indicating strong investor interest and recent price momentum [4] - BKD has gained 1.1% over the past 12 weeks, with a beta of 1.29, suggesting it moves 29% more than the market, indicating fast-paced momentum [5] - BKD has a Momentum Score of A, suggesting it is an opportune time to invest in the stock for potential gains [6] Group 3: Earnings Estimates and Valuation - An upward trend in earnings estimate revisions has contributed to BKD earning a Zacks Rank 2 (Buy), which is associated with strong momentum effects [7] - BKD is trading at a Price-to-Sales ratio of 0.36, indicating it is relatively undervalued, as investors pay only 36 cents for each dollar of sales [7] Group 4: Additional Investment Opportunities - Besides BKD, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, suggesting further investment opportunities [8] - The Zacks Premium Screens offer over 45 different strategies to help identify winning stock picks based on various investing styles [9]