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Momentum: Stock Gains 12% This Week as it Heads Towards Higher Levels

Published 30/04/2024, 03:01 pm

As the broader market continues to surge to higher levels with the benchmark Nifty 50 index gaining 89 points to 22,732, by 10:16 AM IST, smaller pockets are also enjoying investors’ attention.

One counter that’s making a move since the beginning of this week is Prime Focus Ltd (NS:PRFO). It engages in the motion picture, video, and television program post-production activities and has a market capitalization of INR 3,209 crore.

The stock came on my radar through the “Stocks on the Rise” screener in InvestingPro+. It has gained 12.5% this week so far, including today’s 5.5% rally to INR 113 and has crossed its hurdle of INR 110.

When looking at the financial health score in InvestinrPro+, a rating of 3 out of 5 is sufficient to consider it for further analysis. Had it been 2 or less, we probably would have discarded it from our investment decision.

Image Source: InvestingPro+

Another important factor to take a note of when trading momentum stocks is the valuation status. If the stock has already crossed its intrinsic value and become overvalued, then there is a high risk in capitalizing on that momentum.

Here, the fair value of Prime Focus shares is INR 142.5 per share, depicting a healthy 27.8% upside potential from the CMP. this is what we look for when trading high-momentum stocks. In other words, when an undervalued stock picks up momentum, that’s where big money lies.

You can find such high-momentum undervalued stocks in the blink of an eye using the InvestingPro+ screener. For you, InvestingPro+ is currently available at a steep discount of up to 69%, for INR 526/month. Click here to start racking up decent profits with momentum stocks!

X (formerly, Twitter) - Aayush Khanna

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