Looking for a fast-paced Momentum stock at a bargain? Consider Marathon Petroleum (MPC)

Momentum investors generally do not time the market or “buy low and sell high.” In other words, they avoid betting on cheap stocks and waiting a long time for them to recover. Instead, they believe that “buying high and selling high” is the way to make a lot more money in less time.

Who doesn’t like to bet on stocks with strong trends? But determining the right entry point is not easy. Often, these stocks lose momentum as soon as their valuation exceeds their future growth potential. In such a situation, investors find themselves saturated with expensive stocks with little to no upside potential, or even downside potential. Therefore, going all-in on momentum can sometimes be risky.

It might be safer to invest in low-priced stocks that have recently experienced price momentum. While the Zacks Momentum Style Score (part of the Zacks Style Scores system), which pays close attention to a stock’s price or earnings trends, is very useful for identifying stocks with strong momentum, our “Momentum” screen quickly during a good deal” comes in handy for spotting fast-moving stocks whose price remains attractive.

There are several stocks currently going through the screen and Marathon Oil (MPC) is one of them. Here are the main reasons why this stock is a great candidate.

Growing investor interest in a stock is reflected in its recent price rise. A price change of 6.7% over the past four weeks positions this refiner’s stock well in this regard.

While any stock can experience a price increase over a short period of time, it takes a true momentum player to generate positive returns over a longer period of time. MPC also meets this criteria, as the stock has gained 20.5% over the past 12 weeks.

Additionally, MPC’s momentum is rapid, as the stock currently sports a beta of 1.61. This indicates that the stock is moving 61% higher than the market in either direction.

Given this price action, it’s no surprise that MPC has a Momentum Score of B, indicating that now is a good time to enter the stock to take advantage of the momentum with the greatest probability of success.

In addition to a favorable momentum score, an upward trend in earnings estimate revisions has earned MPC a Zacks Rank #2 (Buy). Our research shows that the momentum effect is quite strong among Zacks Rank #1 and #2 stocks. This is because when covering analysts increase their earnings estimates for a stock, more investors become interested in it, helping to keep its price racing. You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here >>>>

More importantly, despite its dynamic momentum characteristics, MPC trades at a reasonable valuation. In terms of price-to-sales ratio, which is considered one of the best valuation indicators, the stock now looks quite cheap. MPC currently trades at 0.31 times sales. In other words, investors only have to pay 31 cents for every dollar of sales.

So, MPC seems to have plenty of room to operate, and that too at a fast pace.

In addition to MPC, there are several other stocks currently going through our “Fast Momentum at a Great Price” screen. You may want to consider investing in these stocks and start looking for the latest stocks that fit these criteria.

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

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Marathon Petroleum Corporation (MPC): Free Stock Analysis Report

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