Yahoo Finance

For Immediate Release

Chicago, IL – May 2, 2025 – The stocks in this week’s article are Nomad Foods Ltd. NOMD, Hawkins, Inc. HWKN and PCB Bancorp PCB.

3 Top Momentum Stocks for May: NOMD, HWKN, PCB

Historically, stocks struggle in May, making the selection of top momentum stocks a challenge. However, this can be done by applying the Richard Driehaus strategy, or the “buy high and sell higher” theory.

To that end, stocks like Nomad Foods Ltd., Hawkins, Inc. and PCB Bancorp have been selected as the momentum picks using the Driehaus strategy.

A Detailed Look into the Driehaus Strategy

Regarding the strategy, Driehaus once said: “I would much rather invest in a stock that’s increasing in price and take the risk that it may begin to decline than invest in a stock that’s already in decline and try to guess when it will turn around.” In line with this insight, the American Association of Individual Investors (AAII) considered the percentage 50-day moving average as one of the key criteria before creating a portfolio following Driehaus’ philosophy.

It is calculated by dividing the numerator (month-end price minus 50-day moving average of month-end price) by the 50-day moving average of the month-end price. Another momentum indicator — positive relative strength — has also been included in this strategy. A positive percentage 50-day moving average indicates that the stock is trading at a price higher than its 50-day moving average level, indicating an uptrend.

Moreover, AAII found that Driehaus primarily focuses on strong earnings growth rates and impressive earnings projections to pick potential outperformers. Companies with a strong history of beating estimates are also given importance in this strategy, which was made to provide better returns over the long term.

Here are three of the 13 stocks:

Nomad Foods

Nomad Foods and its subsidiaries produce, market and distribute frozen food products globally, including in the UK. It has a Momentum Score of A. The average trailing four-quarter earnings surprise for NOMD is 5%.

Hawkins

Hawkins is a U.S. specialty chemical and ingredients company with a Momentum Score of B. The trailing four-quarter earnings surprise for HWKN averages 6.1%.

PCB Bancorp

PCB Bancorp provides banking services to small businesses and individuals. It has a Momentum Score of A. The trailing four-quarter earnings surprise for PCB is 7.4%, on average.

You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.