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Zacks.com featured highlights include M/I Homes, QCR Holdings and Mr. Cooper Group
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For Immediate Release
Chicago, IL – August 8, 2024 – Stocks in this week’s article are M/I Homes, Inc. (MHO - Free Report) , QCR Holdings, Inc. (QCRH - Free Report) and Mr. Cooper Group Inc. (COOP - Free Report) .
3 Momentum Anomaly Picks as Recession Fears Spur Volatility
After witnessing a steady uptrend over the past few weeks, the broader U.S. equity markets fell sharply in the last few trading days due to fears of recession. The sell-off was triggered mainly by weaker-than-expected job market data with nonfarm payrolls growing by just 114,000 last month compared with broad-based expectations of 185,000 job additions. With the unemployment rate increasing to 4.3%, investors feared that the Federal Reserve's prolonged high-interest rate regime led to dismal job market conditions.
This, in turn, sparked a global market sell-off and ripples were felt worldwide, with Japan’s stock market being the worst hit. However, the markets recovered partially yesterday with a rebound in Japan, although volatility remained elevated with the unwinding of the yen “carry trade” as the yen rose in value versus the U.S. dollar.
Amid the uncertainty, investors often seek to employ time-tested winning strategies to fetch sustained profits. One of the most successful game plans to beat the blues is to bet on momentum stocks when value or growth investing fails to generate the desired profits.
This approach primarily tends to follow the adage, “the trend is your friend.” At its core, momentum investing is “buying high and selling higher.” It is based on the idea that once a stock establishes a trend, it is more likely to continue in that direction because of the momentum that is already behind it.
Momentum investing is a way to profit from the general human tendency to extrapolate current trends into the future. It is based on that gap in time before the mean reversion occurs, i.e., before prices become rational again.
In this context, stocks like M/I Homes, Inc., QCR Holdings, Inc. and Mr. Cooper Group Inc. are worth betting on.
Momentum strategies have been known to be alpha-generative over a long period and across market stages. So, this strategy is quite tricky to implement, as detecting these trends is no child’s play.
Here, we have created a strategy to help investors get in on these fast movers and rake in handsome gains. Our screen will help you benefit from both long-term price momentum and a short-term pullback in price.
Here are three stocks out of the four that made it through this screen:
Based in Columbus, OH, M/I Homes is one of the nation's leading homebuilders of single-family homes. In addition, the company purchases undeveloped land to turn into developed lots for the construction of single-family homes, as well as for sale to others. The stock has surged 47.3% in the past year but declined 12.4% in the past week. M/I Homes has a Momentum Score of A.
Headquartered in Moline, IL, QCR Holdings is a multi-bank holding company that provides commercial and consumer banking and asset management services. The company has 36 locations in Iowa, Missouri, Wisconsin and Illinois. The stock has gained 32.5% in the past year but declined 8.9% in the past week. QCR Holdings has a Momentum Score of A.
Based in Coppell, TX, Mr. Cooper Group is the largest home loan servicer in the country, focused on delivering a variety of servicing and lending products, services and technologies. It provides customer-centric servicing, origination and transaction-based services related principally to single-family residences throughout the United States. The stock has rallied 44.4% in the past year but lost 8.4% in the past week. Mr. Cooper Group has a Momentum Score of B.
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 trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Zacks.com featured highlights include M/I Homes, QCR Holdings and Mr. Cooper Group
For Immediate Release
Chicago, IL – August 8, 2024 – Stocks in this week’s article are M/I Homes, Inc. (MHO - Free Report) , QCR Holdings, Inc. (QCRH - Free Report) and Mr. Cooper Group Inc. (COOP - Free Report) .
3 Momentum Anomaly Picks as Recession Fears Spur Volatility
After witnessing a steady uptrend over the past few weeks, the broader U.S. equity markets fell sharply in the last few trading days due to fears of recession. The sell-off was triggered mainly by weaker-than-expected job market data with nonfarm payrolls growing by just 114,000 last month compared with broad-based expectations of 185,000 job additions. With the unemployment rate increasing to 4.3%, investors feared that the Federal Reserve's prolonged high-interest rate regime led to dismal job market conditions.
This, in turn, sparked a global market sell-off and ripples were felt worldwide, with Japan’s stock market being the worst hit. However, the markets recovered partially yesterday with a rebound in Japan, although volatility remained elevated with the unwinding of the yen “carry trade” as the yen rose in value versus the U.S. dollar.
Amid the uncertainty, investors often seek to employ time-tested winning strategies to fetch sustained profits. One of the most successful game plans to beat the blues is to bet on momentum stocks when value or growth investing fails to generate the desired profits.
This approach primarily tends to follow the adage, “the trend is your friend.” At its core, momentum investing is “buying high and selling higher.” It is based on the idea that once a stock establishes a trend, it is more likely to continue in that direction because of the momentum that is already behind it.
Momentum investing is a way to profit from the general human tendency to extrapolate current trends into the future. It is based on that gap in time before the mean reversion occurs, i.e., before prices become rational again.
In this context, stocks like M/I Homes, Inc., QCR Holdings, Inc. and Mr. Cooper Group Inc. are worth betting on.
Momentum strategies have been known to be alpha-generative over a long period and across market stages. So, this strategy is quite tricky to implement, as detecting these trends is no child’s play.
Here, we have created a strategy to help investors get in on these fast movers and rake in handsome gains. Our screen will help you benefit from both long-term price momentum and a short-term pullback in price.
Here are three stocks out of the four that made it through this screen:
Based in Columbus, OH, M/I Homes is one of the nation's leading homebuilders of single-family homes. In addition, the company purchases undeveloped land to turn into developed lots for the construction of single-family homes, as well as for sale to others. The stock has surged 47.3% in the past year but declined 12.4% in the past week. M/I Homes has a Momentum Score of A.
Headquartered in Moline, IL, QCR Holdings is a multi-bank holding company that provides commercial and consumer banking and asset management services. The company has 36 locations in Iowa, Missouri, Wisconsin and Illinois. The stock has gained 32.5% in the past year but declined 8.9% in the past week. QCR Holdings has a Momentum Score of A.
Based in Coppell, TX, Mr. Cooper Group is the largest home loan servicer in the country, focused on delivering a variety of servicing and lending products, services and technologies. It provides customer-centric servicing, origination and transaction-based services related principally to single-family residences throughout the United States. The stock has rallied 44.4% in the past year but lost 8.4% in the past week. Mr. Cooper Group has a Momentum Score of B.
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 trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
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/2317730/3-momentum-anomaly-picks-as-recession-fears-spur-volatility
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Contact: Jim Giaquinto
Company: Zacks.com
Phone: 312-265-9268
Email: pr@zacks.com
Visit: https://www.zacks.com
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.