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Zacks.com featured highlights include Abercrombie & Fitch, PDD Holdings and Western Midstream Partners

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For Immediate Release

Chicago, IL – July 22, 2024 – Stocks in this week’s article are Abercrombie & Fitch Co. (ANF - Free Report) , PDD Holdings Inc. (PDD - Free Report) and Western Midstream Partners, LP (WES - Free Report) .

3 Momentum Picks Using the Driehaus Strategy

Richard Driehaus has earned a place in Barron's All-Century Team courtesy of a strategy that applies the "buy high and sell higher" theory. It's undoubtedly a successful investment approach that can be used to choose the best momentum stocks.

To that end, stocks like Abercrombie & Fitch Co., PDD Holdings Inc. and Western Midstream Partners, LP 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.

The 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.

We use that basis to determine our stock selections above using Zack's Research Wizard Tool.

Here are three of the 13 stocks:

Abercrombie & Fitch

Abercrombie & Fitch operates as a specialty retailer of premium, high-quality casual apparel for men, women and kids. It has a Momentum Score of A. The trailing four-quarter earnings surprise for ANF is 210.3%, on average.

PDD Holdings

PDD Holdings is a multinational commerce group that owns and operates a portfolio of businesses. It has a Momentum Score of A. The trailing four-quarter earnings surprise for PDD is 45.6%, on average.

Western Midstream Partners

Western Midstream Partners is formed to own, operate, acquire and develop midstream energy assets. It has a Momentum Score of A. The trailing four-quarter earnings surprise for WES is 19.4%, on average.

You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.

The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.

Click here to sign up for a free trial to the Research Wizard today.

For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2305025/3-momentum-picks-using-the-driehaus-strategy-anf-pdd-wes

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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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.

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