BofA update shows where active managers are putting money
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