Zacks.com highlights: Lam Research, Exponent, E*TRADE Financial, Washington Federal and Andeavor
For Immediate Release
Chicago, IL – Feb 2, 2018 - Stocks in this week’s article include: Lam Research Corp. LRCX, Exponent, Inc. EXPO, E*TRADE Financial Corporation ETFC, Washington Federal, Inc. WAFD and Andeavor ANDV.
Screen of the Week of Zacks Investment Research:
Invest Like Driehaus with These 5 Momentum Stocks
The Driehaus strategy is one of the best investment approaches for those with a high-risk appetite. Using this strategy, investors can pick momentum stocks, in order to get great returns. Richard Driehaus formulated this strategy using the buy high and sell higher principle, which eventually helped him secure a place in Barron’s All-Century Team.
The American Association of Individual Investors (AAII) proved that the strategy has the potential to offer high returns. AAII’s portfolio, which was developed following the strategy, returned 13.5% and 18.1% in the five and 10-year time frames, respectively, compared with -1.1% and 4.2% returns registered by the S&P 500. Thus, investors with a high risk appetite might give the Driehaus strategy a thought to boost returns.
A Brief Note on 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 keeping with his insight, AAII took into account the percentage 50-day moving average as one of the key criteria before designing a portfolio.
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. 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 focused 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.
And that's what we're screening for today…
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/290959/invest-like-driehaus-with-these-5-momentum-stocks
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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. See these high-potential stocks free >>.
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Washington Federal, Inc. (WAFD) : Free Stock Analysis Report
E*TRADE Financial Corporation (ETFC) : Free Stock Analysis Report
Lam Research Corporation (LRCX) : Free Stock Analysis Report
Exponent, Inc. (EXPO) : Free Stock Analysis Report
Tesoro Corporation (ANDV) : Free Stock Analysis Report
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