Zacks.com featured highlights Ross Stores, Chart Industries and REV Group
For Immediate Release
Chicago, IL – October 16, 2023 – Stocks in this week’s article are Ross Stores ROST, Chart Industries GTLS and REV Group REVG.
Buy 3 Momentum Stocks Banking on the Driehaus Strategy
The Driehaus strategy can be applied to choose the best momentum stocks. 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.
To that end, stocks like Ross Stores, Chart Industries and REV Group 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 10 stocks:
Ross Stores operates as an off-price retailer of apparel and home accessories, primarily in the United States. It has a Momentum Score of B. The trailing four-quarter earnings surprise for ROST is 11.4%, on average.
Chart Industries is a leading independent global manufacturer of highly engineered equipment servicing end-market applications. It has a Momentum Score of A. The trailing four-quarter earnings surprise for GTLS is 82.3%, on average.
REV Group designs, manufactures and distributes specialty vehicles, and related aftermarket parts and services. It has a Momentum Score of A. The trailing four-quarter earnings surprise for REVG is 303.6%, on average.
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For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2165354/buy-3-momentum-stocks-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.
Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance.
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Ross Stores, Inc. (ROST) : Free Stock Analysis Report
Chart Industries, Inc. (GTLS) : Free Stock Analysis Report
REV Group, Inc. (REVG) : Free Stock Analysis Report
