Despite rapid momentum, Commercial Vehicle Group (CVGI) is still a steal
MOmentum investing is essentially the opposite of the tried and true Wall Street adage – “buy low and sell high”. Investors who follow this style of investing generally avoid betting on cheap stocks and waiting a long time for them to recover. Rather, they believe that one could make a lot more money in less time by âbuying high and selling higherâ.
Who doesn’t like to bet on fast trending stocks? But determining the right entry point is not easy. Often, these stocks lose momentum once their valuation exceeds their potential for future growth. In such a situation, investors find themselves overloaded with expensive stocks with little or no upside or even downside. So going all-in on the swing can be risky at times.
A safer approach might be to invest in low priced stocks with recent price momentum. While the Zacks Momentum Style Score (which is part of the Zacks Style Scoring System) helps identify high momentum stocks by paying close attention to trends in a stock’s price or earnings, our Quick Momentum screen cheaply âis handy for quickly spotting stocks that are still priced attractively.
Commercial Vehicle Group (CVGI) is one of the many great candidates who have come to the screen. While there are many reasons why this stock is a great choice, here are the most important:
A boost in recent price dynamics reflects growing investor interest in a stock. With a price change of 8.4% over four weeks, the inventory of this supplier of heavy truck products is certainly well positioned in this regard.
While any stock can experience a price rise for a short time, it takes a real dynamic player to generate positive returns over a longer period. CVGI also meets this criterion, as the stock has gained 27.6% in the past 12 weeks.
Additionally, CVGI’s momentum is fast, as the stock currently has a beta of 3.58. This indicates that the stock is moving 258% higher than the market in both directions.
Given this price performance, it’s no surprise that CVGI has a Momentum Score of A, indicating that now is the right time to get into the action to take advantage of the momentum with the greatest likelihood. of success.
In addition to a favorable Momentum Score, an upward trend in earnings estimate revisions helped CVGI achieve a Zacks Rank # 1 (Strong Buy). Our research shows that the dynamic effect is quite strong among Zacks Rank # 1 and # 2 stocks. Indeed, as hedge analysts increase their earnings estimates for a stock, more and more investors are interested, thus helping its price race to follow. You can see the full list of Zacks Rank # 1 (strong buy) stocks today here >>>>
More importantly, despite its rapid momentum characteristics, CVGI is trading at a reasonable valuation. In terms of the price-to-sell ratio, which is considered one of the best indicators of valuation, the stock looks pretty cheap now. CVGI is currently trading at 0.51 times its sales. In other words, investors only have to pay 51 cents for every dollar they sell.
So CVGI seems to have a lot of room to function, and that too at a rapid pace.
In addition to CVGI, several other actions are currently going through our âFast Momentum at a Great Priceâ screen. You can consider investing in them and start looking for the most recent stocks that match these criteria.
This isn’t the only screen that might help you find your next winning stock pick. Depending on your personal investing style, you can choose from over 45 Zacks Premium Screens which are strategically created to beat the market.
However, keep in mind that the key to a successful stock selection strategy is to ensure that it has produced profitable results in the past. You can easily do this with the help of Zacks’ research assistant. In addition to allowing you to check the effectiveness of your strategy, the program contains some of our most successful stock selection strategies.
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Commercial Vehicle Group, Inc. (CVGI): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.