Many value investors may ignore the red-hot stocks in the market just because of their momentum. Undoubtedly, stocks that surge by double-digit percentage points in a matter of weeks are too hot to touch for many investors. So, momentum alone does not indicate a bubble or even overvaluation.
As long as the fundamentals are improving and the earnings growth is moving accordingly, stock price appreciation may be warranted. And, you may have situations where high-flying stocks appear cheaper after a sizable upward move.
Let’s check three momentum stocks that have the potential to be long-term winners.
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