For Immediate Release
Chicago, IL – September 20, 2023 – Stocks in this week’s article are Inter Parfums (
IPAR Quick Quote IPAR - Free Report) , Abercrombie & Fitch ( ANF Quick Quote ANF - Free Report) and Modine Manufacturing ( MOD Quick Quote MOD - Free Report) . Top 3 Momentum Stocks to Buy Using Driehaus Strategy
The Driehaus strategy applies the "buy high and sell higher" theory, which is undoubtedly a successful investment approach that helped Richard Driehaus earn a place in Barron's All-Century Team. The Driehaus strategy can be applied to choose the best momentum stocks.
To that end, stocks like
Inter Parfums, Abercrombie & Fitch and Modine Manufacturing 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 18 stocks:
Inter Parfums is engaged in the manufacturing, distribution and marketing of a wide range of fragrances and related products. It has a Momentum Score of A. The trailing four-quarter earnings surprise for IPAR is 45.9%, on average. Abercrombie & Fitch operates as a specialty retailer of premium, high-quality casual apparel for men, women and kids. It has a Momentum Score of B. The trailing four-quarter earnings surprise for ANF is 724.8%, on average. Modine Manufacturing operates primarily in a single industry consisting of the manufacture and sale of heat transfer equipment. Modine Manufacturing has a Momentum Score of B. The trailing four-quarter earnings surprise for MOD is 44.7%, 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/2152295/top-3-momentum-stocks-to-buy-using-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
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.
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