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For Immediate Release
Chicago, IL – January 26, 2022 – Stocks in this week’s article are BancFirst Corp. BANF, Fulton Financial Corp. FULT, Limestone Bancorp, Inc. LMST and Cowen Inc. COWN.
Explore These 5 Momentum Stocks Using Driehaus Strategy
Investors who tend to take higher risks can think of investing in momentum stocks to boost their gains. In this respect, the Driehaus strategy can be used to choose the best momentum stocks using the “buy high and sell higher" theory. Eventually, Richard Herman Driehaus earned his place in Barron’s All-Century Team following the success of this investment strategy.
Portfolios such as the American Association of Individual Investors (AAII) have proven time and again that the strategy has the potential to offer high returns. Thus, investors with a high-risk appetite may opt for this strategy.
To that end, we have selected BancFirst Corp., Fulton Financial Corp., Limestone Bancorp, Inc. and Cowen Inc. as the momentum picks for the day, using the Driehaus strategy.
A Detailed Look into 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 line with this insight, AAII took into account 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.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/1856637/explore-these-5-momentum-stocks-using-driehaus-strategy?art_rec=quote-stock_overview-zacks_news-ID02-txt-1856637
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BancFirst Corporation (BANF) : Free Stock Analysis Report
Cowen Group, Inc. (COWN) : Free Stock Analysis Report
Fulton Financial Corporation (FULT) : Free Stock Analysis Report
LIMESTONE BANCORP, INC. (LMST) : Free Stock Analysis Report
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