Yahoo Finance Zacks.com featured highlights include AAON, Taylor Morrison Home and Nucor
For Immediate Release
Chicago, IL – April 13, 2023 – Stocks in this week’s article are AAON AAON, Taylor Morrison Home TMHC and Nucor NUE.
3 Must-Buy Momentum Stocks Banking on Driehaus Strategy
The "buy high and sell higher" theory can be associated with the Driehaus strategy. It can be applied to choose the best momentum stocks. No doubt, it's a successful investment strategy that helped Richard Driehaus make a place in Barron's All-Century Team.
To that end, stocks like AAON, Taylor Morrison Home and Nucor 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 16 stocks:
AAON is a manufacturer of air-conditioning and heating equipment consisting of rooftop units, chillers, air-handling units, condensing units, and coils. AAON has a Momentum Score of B. The trailing four-quarter earnings surprise for AAON is 5.7%, on average.
Taylor Morrison Home is a homebuilder and land developer engaged in building single-family detached and attached homes for first-time buyers and move-up families to luxury and active adult customers. TMHC has a Momentum Score of B. The trailing four-quarter earnings surprise for TMHC is 13.3%, on average.
Nucor is a leading producer of structural steel, steel bars, steel joists, steel deck, and cold-finished bars in the United States. NUE has a Momentum Score of A. The trailing four-quarter earnings surprise for NUE is 7.7%, 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/2077389/3-must-buy-momentum-stocks-banking-on-the-driehaus-strategy
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Strong Stocks that Should Be in the News
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Nucor Corporation (NUE) : Free Stock Analysis Report
AAON, Inc. (AAON) : Free Stock Analysis Report
Taylor Morrison Home Corporation (TMHC) : Free Stock Analysis Report