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.

Who doesn’t like to invest in fast-moving trend stocks? But determining the right time to enter is not easy. Often these stocks lose momentum when their valuation exceeds their future growth potential. In such a situation, investors have expensive stocks in their hands that offer little or no upside or even downside potential. Therefore, it can sometimes be risky to bet fully on momentum.

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.

Bally’s Corporation (BALY) 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 price change of 21.5% over the past four weeks positions the stock of this hotel-casino operator 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. BALY also meets this criteria, with the stock gaining 41.3% over the past 12 weeks.

Furthermore, momentum is high for BALY as the stock currently has a beta of 2.1, suggesting the stock has a potential to rise 110% higher than the market in either direction.

Given this price action, it is no surprise that BALY has a Momentum Score of A, indicating that now 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 BALY earn a Zacks Rank #2 (Buy). Our research shows that the momentum effect is quite strong at Zacks Ranks #1 and #2. That’s because more investors become interested in a stock when analysts increase their earnings estimates for it, which helps the price 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, BALY 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. BALY is currently trading at 0.28 times its sales. In other words, investors only have to pay 28 cents for every dollar of sales.

BALY seems to have a lot of room to maneuver, and at a fast pace too.

Besides BALY, there are several other stocks that currently pass through our Rapid 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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Bally’s Corporation (BALY): Free Stock Analysis Report

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