Momentum investing is essentially an exception to the idea of ​​”buying low and selling high.” Investors who follow this investing style are typically not interested in betting on cheap stocks and waiting a long time for them to recover. Instead, they believe that “buying high and selling higher” is the way to make a lot more money in a shorter period of time.

Everyone likes to bet on fast-moving trending stocks, but it is not easy to determine the right time to enter. These stocks often lose momentum when their future growth potential does not justify their inflated valuation. During this phase, investors invest in stocks that have limited or no upside potential or even downside potential. Therefore, betting on a stock based only on traditional momentum parameters can sometimes be risky.

It might be safer to invest in bargain stocks that have seen their price momentum increase recently. While the Zacks Momentum Style Score (part of the Zacks Style Scores system), which closely monitors a stock’s price or earnings trends, is quite useful for identifying great momentum stocks, our Fast Momentum Stocks at Bargain Prices screen is handy for spotting fast-moving stocks that are still attractively valued.

Xperi (XPER) is one of the many great candidates that made it through the review. There are numerous reasons why this stock is a great choice. Here are the main ones:

Growing investor interest in a stock is reflected in its recent price increase. A 12% price change over the past four weeks positions this media software company’s stock well in this regard.

While any stock can see a short-term price increase, it takes a true momentum player to deliver positive returns over a longer period of time. XPER also meets this criteria, as the stock has gained 9.6% over the past 12 weeks.

Furthermore, momentum for XPER is rapid as the stock currently has a beta of 1.56, meaning the stock has a 56% chance of rising above the market in either direction.

Given this price action, it is no surprise that XPER has a Momentum Score of B, indicating that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success.

In addition to a favorable Momentum Score, an uptrend in earnings estimate revisions has helped XPER earn a Zacks Rank #2 (Buy). Our research shows that the momentum effect is quite strong for Zacks Rank #1 and #2 stocks. That’s because when analysts increase their earnings estimates for a stock, more investors become interested in it and its price race can keep up. You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here >>>>

The story continues

Most importantly, despite its rapid momentum, XPER is trading at a reasonable price. Based on the price-to-sales ratio, which is considered one of the best valuation metrics, the stock currently looks quite cheap. XPER is currently trading at 0.81 times its sales. In other words, investors only have to pay 81 cents for every dollar of sales.

So XPER seems to have a lot of room for maneuver, and at a high pace too.

Besides XPER, there are several other stocks that currently pass through our Fast-moving Momentum at a Bargain Price filter. You can consider investing in these and look for the latest stocks that meet these criteria.

This isn’t the only screen that can help you find your next winning stock pick. Based on your personal investing style, you can choose from over 45 Zacks Premium screens that are strategically designed to beat the market.

However, remember that the key to a successful stock-picking strategy is to make sure it has a history of producing profitable results. You can do this easily with the help of the Zacks Research Wizard. The program not only allows you to test the effectiveness of your strategy, but also includes some of our most successful stock-picking strategies.

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Xperi Inc. (XPER): Free Stock Analysis Report

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