For Immediate Release
Chicago, IL – November 27, 2019 - Stocks in this week’s article are
Amedisys, Inc. AMED, PC Connection, Inc. CNXN, NRG Energy, Inc. ( NRG Quick Quote NRG - Free Report) and Target Corporation TGT. 4 Momentum Picks Screened on Driehaus Strategy
Richard Herman Driehaus used the "buy high and sell higher" rule to create an investment approach, which appeals to those having a high level of risk appetite. Investors principally invest in momentum stocks using the Driehaus strategy. The success of this investment approach eventually helped Richard Driehaus make a place in Barron’s All-Century Team.
The American Association of Individual Investors (AAII) proved that the strategy has the potential to offer higher-than-market returns. AAII’s portfolio, which was developed based on the Driehaus strategy, has returned more than 300% since the end of the last bear market compared with 85.5% gains registered by the S&P 500.
A Look at Driehaus’ Strategy
After a detailed study of the Driehaus’ strategy, AAII concluded that it mainly focuses on strong earnings growth rates and impressive prospects to pick potential outperformers. While this strategy was made to provide better returns over the longer haul, companies with a strong history of beating estimates were also given importance.
“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,” Driehaus had said in an interview.
In addition to the 50-day moving average and relative strength, we have considered a few some parameters for picking the best stocks. As companies with a strong history of beating estimates usually outperform the market, we added this to our screen. Also, we have considered only those stocks that have a Zacks Rank #1 (Strong Buy) or 2 (Buy) and a Momentum Score of A or B. Our research shows that stocks with a
Style Score of A or B when combined with a Zacks Rank #1 or 2 offer the best upside potential. For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/638429/4-momentum-picks-screened-on-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.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year.
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Contact: Jim Giaquinto
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