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 for them to recover for a long time. Rather, they believe that one could make a lot more money in less time by “buying high and selling higher”.

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 laden 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 scores system) helps identify high-momentum stocks by paying close attention to trends in a stock’s price or earnings, our “Fast momentum at a great price” screen is handy for spotting fast-moving stocks that are always at risk. an attractive price.

Build-A-Bear (BBW) is one of the many great contenders who have made it onto the screen. While there are many reasons why this stock is a great choice, here are the most important:

The growing interest of investors in a stock is reflected in its recent price increase. A 5.5% price change over the past four weeks positions this toy retailer’s inventory well in this regard.

While any stock can experience a price rise for a short period of time, it takes a real dynamic player to generate positive returns over a longer period. BBW also meets this criterion, as the stock has gained 5.9% in the past 12 weeks.

Additionally, the momentum for BBW is fast, as the stock currently has a beta of 1.95. This indicates that the stock is moving 95% higher than the market in both directions.

Given this price performance, it’s no surprise that BBW 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 BBW 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 run to keep pace. You can see the full list of today’s Zacks Rank # 1 (strong buy) stocks here >>>>

More importantly, despite its characteristics of rapid momentum, BBW 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. BBW is currently trading at 0.78 times its sales. In other words, investors only have to pay 78 cents for every dollar they sell.

So, BBW seems to have plenty of room to run around, and that too at a fast pace.

In addition to BBW, there are several other stocks currently going through our “Fast Momentum at a Great Price” 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 Displays 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.

Click here to sign up for a free trial of the Research Assistant today.

More information on stocks: it’s bigger than the iPhone!

She could become the mother of all technological revolutions. Apple has only sold one billion iPhones in 10 years, but a new breakthrough is expected to generate over 77 billion devices by 2025, creating a market of $ 1.3 trillion.

Zacks has just published a special report that highlights this rapidly emerging phenomenon and 4 tickers to take advantage of it. If you don’t buy now, you could get started in 2022.

Click here for the 4 professions >>

Click to get this free report

BuildABear Workshop, Inc. (BBW): Free Stock Analysis Report

To read this article on Zacks.com, click here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.