Despite Fast Momentum, Invitae (NVTA) Is Still a Bargain Stock

Momentum investors usually don’t time the market or “buy low and sell high.” In other words, they avoid betting on cheap stocks and waiting too long to recover. Instead, they believe that “buying high and selling higher” is the way to make more money in less time.

Who doesn’t like betting on fast moving stocks? But determining the right entry point is not easy. Often, these stocks lose momentum once their valuation outstrips their future growth potential. In such a situation, investors find themselves full of expensive shares that are limited to no upside or even a downside. So, going all in on the momentum can be dangerous at times.

It may be safer to invest in bargain stocks that have witnessed price momentum recently. While the Zacks Momentum Style Score (part of the Zacks Style Scores system), which focuses closely on a stock’s price or earnings trends, is very useful for identifying great momentum stocks, our ‘Fast-Paced Momentum at a Bargain’ screen comes up. it’s easy to find fast-moving stocks that are still attractively priced.

INVITE (NVTA) is one of the many notable candidates that have passed through the screen. While there are many reasons why this stock is a good choice, here are the most important ones:

The growing interest of investors in a stock is reflected in its recent price increase. A price change of 20.3% over the past four weeks puts the stock of this genetic testing company in good stead.

While any stock can see a spike in price for a short time, it takes a real momentum player to provide positive returns for a longer time frame. NVTA has also met this benchmark, as the stock has gained 7.5% over the past 12 weeks.

Furthermore, the momentum for NVTA is fast, as the stock currently has a beta of 1.65. This shows that the stock is moving 65% higher than the market in either direction.

Given this price performance, it is not surprising that NVTA 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 upward trend in earnings estimate revisions has helped NVTA earn a Zacks Rank #2 (Buy). Our research shows that the momentum effect is very strong among Zacks Rank #1 and #2 stocks. That’s because as coverage analysts raise their earnings estimates for a stock, more and more investors are interested in it, helping its price race to continue. You can see the complete list of current Zacks Rank #1 (Strong Buy) stocks here >>>>

Most importantly, despite having fast shares of momentum, NVTA trades at a reasonable valuation. In terms of the Price-to-Sales ratio, which is considered one of the best valuation metrics, the stock is cheap right now. NVTA currently trades at 0.39 times its sales. In other words, investors should pay only 39 cents for every dollar of sales.

So, NVTA appears to have a lot of room to run, and that too at a fast pace.

In addition to NVTA, there are several other stocks currently passing through our ‘Fast-Paced Momentum at a Bargain’ screen. You can consider investing in them and start looking for the latest stocks that match these criteria.

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

However, remember that the key to a successful stock selection strategy is to ensure that it has produced profitable results in the past. You can do this easily with the help of the Zacks Research Wizard. In addition to allowing you to backtest the effectiveness of your strategy, the program is packed with some of our most successful stock picking strategies.

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Invitae Corporation (NVTA) : Free Stock Analysis Report

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