For Immediate Release
Chicago, IL – May 27, 2020 – Stocks in this week’s article are Eli Lilly and Company LLY, Quidel Corp. QDEL, Everbridge, Inc. EVBG and Sprouts Farmers Market, Inc. SFM.
Top 4 Momentum Anomaly Stocks to Enhance Portfolio Returns
Reacting hastily to volatile trends can cause more damage to an investor’s portfolio returns than a downturn. When value or growth investing fails to fetch sustained profits, one should explore another time-tested winning strategy that simply bets on the frontrunner stocks. This is known as momentum investing.
At the core, momentum investing is buying high, selling higher. It is based on the idea that once a stock establishes a trend, it is likely to continue in that direction. There’s a whole list of behavioral biases that most investors exhibit. For instance, some investors are anxious about booking losses and hence hold on to losing stocks for too long, hoping for a rebound in prices.
Meanwhile, a few investors sell their winners way too early. Momentum investing is one of the best strategies to avoid making such mistakes. So, it’s a way to profit from the general human tendency to extrapolate current trends into the future. Momentum investing is, thus, based on that gap in time, which exists before the mean reversion occurs i.e. before prices become rational again.
Here, we have created a strategy that will help investors get in on these fast movers when there is a short-term pullback in price and rake in handsome gains.
For the rest of this Screen of the Week article please visit Zacks.com at:https://www.zacks.com/stock/news/945014/top-4-momentum-anomaly-stocks-to-enhance-portfolio-returns
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.
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Eli Lilly and Company (LLY) : Free Stock Analysis Report
Quidel Corporation (QDEL) : Free Stock Analysis Report
Sprouts Farmers Market, Inc. (SFM) : Free Stock Analysis Report
Everbridge, Inc. (EVBG) : Free Stock Analysis Report
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