For Immediate Release
Chicago, IL – May 30, 2023 – Stocks in this week’s article are Conagra Brands (
CAG Quick Quote CAG - Free Report) , SPX Technologies, Inc. ( SPXC Quick Quote SPXC - Free Report) and Axon Enterprise ( AXON Quick Quote AXON - Free Report) . 3 Solid Momentum Stocks to Buy, Banking on Driehaus Strategy
The Driehaus strategy can be associated with the “buy high and sell higher” theory. It can be applied to choose the best momentum stocks. No doubt, it’s a successful investment strategy that helped Richard Driehaus make a place in Barron’s All-Century Team.
To that end, stocks like
Conagra Brands, SPX Technologies, Inc. and Axon Enterprise have been selected as the momentum picks for the day 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:
Conagra Brands is one of North America's leading branded food companies. Conagra Brands has a Momentum Score of B. The trailing four-quarter earnings surprise for CAG is 13.2%, on average. SPX Technologies is a diversified supplier of highly engineered products and technologies, holding positions in the HVAC and detection and measurement markets. SPX Technologies has a Momentum Score of B. The trailing four-quarter earnings surprise for SPXC is 28.4%, on average. Axon Enterprise engages in the development, manufacture and sale of conducted electrical weapons for the law enforcement, federal, military, corrections, private security and personal defense markets. Axon Enterprise has a Momentum Score of A. The trailing four-quarter earnings surprise for AXON is 44.4%, on average.
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Click here to sign up for a free trial to the Research Wizard today. For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2100110/3-solid-momentum-stocks-to-buy-banking-on-the-driehaus-strategy 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
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