Zacks.com highlights: Lululemon Athletica, Nucor, Quaker Chemical, Cigna and Global Brass and Copper Holdings
International Flavors & Fragrances (IFF) will gain on cost cutting efforts, productivity initiatives, acquisitions and growth in global market for flavors and fragrances in third-quarter 2018. ·Zacks
Chicago, IL – October 1, 2018 - Stocks in this week’s article include: Lululemon Athletica Inc. LULU, Nucor Corp. NUE, Quaker Chemical Corp. KWR, Cigna Corp. CI and Global Brass and Copper Holdings, Inc. BRSS.
Screen of the Week of Zacks Investment Research:
5 Top Momentum Stocks Based on Driehaus Strategy
Renowned American businessman and fund manager, Richard Herman Driehaus developed an investment strategy per the buy high and sell higher principle. This approach is ideal for investors with a tendency to take high risks. Investors bet on momentum stocks using this particular strategy. Success of this investment approach eventually helped Driehaus get a place in Barron’s All-Century Team.
The American Association of Individual Investors (AAII) proved that the strategy has the potential to offer high returns. Its portfolio, which was developed following the strategy, returned 13.5% and 18.1% in the five and 10-year time frames, respectively, compared with -1.1% and 4.2% returns registered by the S&P 500. Thus, investors with a high risk appetite might give the Driehaus strategy a thought to boost returns.
A Brief Note on 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 a decline and try to guess when it will turn around.” In keeping with his insight, AAII took into account the percentage 50-day moving average as one of the key criteria before designing a portfolio.
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. 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 focused 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.
And that's what we're screening for today…
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/325417/5-top-momentum-stocks-based-on-driehaus-strategy
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Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
About Screen of the Week
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.
Strong Stocks that Should Be in the News
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