In a stock market that’s somewhat lacking in volatility, value investors are sure to find other things to be anxious about. Indeed, momentum is growing behind a wide range of names, especially those in tech with artificial intelligence ( AI ) plans and products under development. For some value-conscious folks, the magnitude of momentum driven by an emerging technological trend may be enough to keep them glued to the bleachers.
Momentum may be scary for value-conscious crowds, as volatility is for short-term traders. Yet, investors could miss out by not jumping into the game despite the higher admission prices. Many of the market’s leading momentum plays in tech are being driven not just by upbeat sentiment but improving fundamentals.
Let’ delve into three high flyers with solid legs. Abercrombie & Fitch (ANF) Shares of Abercrombie & Fitch (NYSE: ANF ) continues to ride high, as the stock is up over 400% in the past year. The best part is that retail play, which had its heyday over 15 years ago, still looks more like a value play at less than 23 times trailing P/E.
Truly, management has had phenomenal turnaround. But sometimes, it’s changes in consumer behavior and tastes that are responsible for sudden and sharp sales surges. It can be challenging to predict when a mature market leader (like Lululemon (NASDAQ: LULU ) will implode and when a firm fashionable in a prior decade, like Abercrombie & Fitch, will come back from a lengthy hibernation.
Though ANF stock looks .
