VEON (VEON) Maintains Strong Upward Trend Yet Remains Undervalued

Understanding Momentum Investing

Momentum investing takes a different approach compared to the classic Wall Street strategy of "buy low, sell high." Rather than focusing on undervalued stocks and waiting for them to rebound, momentum investors prefer to "buy high and sell even higher," aiming for quicker gains by riding the wave of rising stocks.

Chasing stocks that are rapidly gaining popularity can be appealing, but pinpointing the ideal moment to invest is challenging. Often, these stocks lose their upward drive once their prices outpace their growth prospects, leaving investors with costly shares and limited potential for further gains—or even losses. As a result, relying solely on momentum can sometimes be risky.

Combining Value and Momentum

A more balanced strategy is to seek out undervalued stocks that are also showing strong price momentum. The Zacks Momentum Style Score, part of the Zacks Style Scores system, is a useful tool for identifying such opportunities. Additionally, the 'Fast-Paced Momentum at a Bargain' screen helps investors spot stocks that are both moving quickly and remain attractively priced.

Spotlight on VEON Ltd. (VEON)

One standout from this screening process is VEON Ltd. (VEON). Here are some key reasons why VEON is an appealing choice:

• VEON's stock price has climbed 2.6% over the past month, signaling growing investor interest.
• Over the last 12 weeks, the stock has delivered a 5.6% gain, demonstrating sustained momentum.
• With a beta of 1.59, VEON tends to move 59% more than the overall market, reflecting its fast-paced nature.
• The stock currently holds a Momentum Score of B, suggesting favorable timing for investors looking to capitalize on its momentum.
• Upward revisions in earnings estimates have helped VEON achieve a Zacks Rank #2 (Buy), and research shows that stocks with Zacks Rank #1 or #2 often benefit from strong momentum as analyst optimism attracts more buyers. See the full list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
• Despite its momentum, VEON remains reasonably valued, trading at just 0.88 times its sales—meaning investors pay only 88 cents for every dollar of revenue.

With these factors in mind, VEON appears well-positioned for continued growth at a rapid pace.

Other Opportunities and Tools

VEON isn't the only stock meeting the criteria for fast-paced momentum at a bargain price. There are several others worth considering, and investors are encouraged to explore new candidates that fit this profile.

Beyond this particular screen, there are over 45 Zacks Premium Screens tailored to different investing styles, all designed to help outperform the market.

It's important to remember that the foundation of any successful stock-picking strategy is a proven track record of profitability. The Zacks Research Wizard makes it easy to backtest your strategies and comes equipped with some of the firm's most effective stock selection methods.

Start your free trial of the Research Wizard here.

Five Stocks with Doubling Potential

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Read the free stock analysis report for VEON Ltd. (VEON)

This article was originally published by Zacks Investment Research (zacks.com).

Zacks Investment Research