Chicos FAS is a top stock pick for investors looking for momentum

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Investing in momentum is, in a nutshell, the inverse of the old adage that advises investors to “buy cheap and sell high.” The majority of the time, investors who utilise this technique do not want to take a risk over the long run on equities that are undervalued.

They choose, rather, to employ the tactic of “buying high and selling higher” in the hope of maximising the amount of financial profit they can generate in a relatively short amount of time.

Everyone enjoys placing bets on stocks that are anticipated to move quickly in the direction of a trend; nevertheless, doing so profitably is frequently challenging.

The price of a stock typically falls when the anticipated growth rate of the company’s earnings is lower than the inflated price of the stock. When something like this does place, stockholders are left with shares that have very little to no possibility for either growth or loss.

Given this information, it might not be a good idea to place a bet on a company based purely on the traditional momentum characteristics of the stock.

Find the best stocks to invest in with our FastPaced Momentum at a Bargain screen.

Investing your money in low-priced stocks that have been steadily increasing in value can be a smart move to make.

You can find fast-moving stocks that are still reasonably priced by using our ‘Fast-Paced Momentum at a Bargain’ screen, and the Zacks Momentum Style Score, which is part of the Zacks Style Scores system, is excellent for identifying great momentum stocks because it pays close attention to trends in a stock’s price or earnings.

Both of these screens can be found on our website. Chico’s FAS (CHS) is one of the many fantastic prospects that made it past the first screening. There were a lot of them. This stock is a fantastic pick for a number of reasons, but the following are the most important ones:

The recent price increase of a stock is a reflection of the growing demand from investors. In this way, the stock of this store has done well, as evidenced by a 3.4% increase in value over the course of the last four weeks.

It is possible for the price of any stock to rise momentarily, but sustained profitability over the long term requires a stock with genuine momentum. In this regard, CHS is in compliance with the criterion because the stock price has risen by 7.6 percent over the course of the previous 12 weeks.

Additionally, the fact that the stock’s beta is 1.22 demonstrates that CHS is developing rapidly. It demonstrates that the price changes are 22% more significant than the average change seen in the market.

Now is the time to buy CHS stock to capitalize on its momentum!

As a result of the recent movement in its share price, CHS has earned an A for its Momentum Score. This indicates that, taking into account the patterns of the past, right now would be a good time to buy the stock in order to capitalise on the momentum while having the best possibility of being successful.

Because of its high Momentum Score and the fact that earnings estimate revisions have been trending in the positive way, CHS currently holds the top spot in the Zacks Rank (Strong Buy).

According to the findings of our study, the momentum effect is most powerful for stocks that have a Zacks Rank of 1 or 2. Because an increase in the earnings estimates placed on a stock by analysts encourages an increase in the number of investors who want to purchase the stock, which in turn drives up the price.

The following is an exhaustive list of all of the companies whose shares currently carry a Zacks Rank #1 (Strong Buy) rating (Strong Buy)

CHS is trading at a reasonable price, and it also possesses a significant amount of forward momentum. The Price-to-Sales ratio, which is one of the finest ways to determine how much something is worth, demonstrates that the company is now available at an affordable price.

CHS is trading at a price that is 36% lower than what the firm would fetch on the open market were it to be sold. Investors only deserve 36 cents of every dollar in sales that the company makes.

“CHS is a great stock choice for investors looking for fast-paced momentum at a bargain.”

It would appear that CHS has a significant amount of room for growth, as well as the potential for rapid expansion.

Now, CHS and a handful of other stocks pass through the filter that we have labelled “Fast-Paced Momentum at a Bargain.” You could consider making a financial investment in them and begin researching the most recent stocks that satisfy these requirements.

It’s likely that the next fantastic stock choice you’re looking for isn’t going to show up on this screen at all. Over 45 distinct Zacks Premium Screens have been developed to assist you in outperforming the market in a manner that is most aligned with the preferences you have regarding investing.

Keep in mind, however, that the single most important thing you can do to improve your chances of making money is to invest in stocks that have a strong track record. With the assistance of the Zacks Research Wizard, you won’t have any trouble accomplishing this task.

The software not only provides you with the ability to evaluate how well your approach performed in the past, but it also comes pre-loaded with a number of our most successful stock-picking strategies.