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 typically avoid betting on cheap stocks and waiting a long time for them to recover. Instead, they believe that much more money can be made in a shorter period of time by “buying high and selling even higher.”

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.

A safer approach might be to invest in cheap stocks with current price momentum. While the Zacks Momentum Style Score (part of the Zacks Style Scores system) helps identify great momentum stocks by closely monitoring trends in a stock’s price or earnings, our Fast Momentum at Bargain Prices screen is handy for spotting fast-moving stocks that are still attractively valued.

There are several stocks that are currently running through the filter and Aveanna Healthcare (AVAH) is one of them. Here are the top reasons why this stock is a great candidate.

A hint of price momentum recently reflects the growing interest of investors in a stock. With a four-week price change of 30.3%, the shares of this home care provider are certainly well positioned 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. AVAH also meets this criteria, as the stock has gained 86.1% over the past 12 weeks.

Furthermore, momentum is rapid for AVAH as the stock currently has a beta of 2.08, meaning the stock has 108% potential to rise higher than the market in either direction.

Given this price action, it is no surprise that AVAH has a Momentum Score of A, 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 AVAH 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 show interest 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 >>>>

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Most importantly, despite its rapid momentum, AVAH 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. AVAH is currently trading at 0.52 times its sales. In other words, investors only have to pay 52 cents for every dollar of sales.

So AVAH seems to have plenty of room to develop, and at a rapid pace.

Besides AVAH, there are several other stocks that currently pass through our Rapid Momentum at a Bargain Price filter. You may 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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Aveanna Healthcare Holdings Inc. (AVAH): Free Stock Analysis Report

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