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Zacks.com featured highlights include Pilgrim's Pride, Carriage Services and Velocity Financial
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For Immediate Release
Chicago, IL – August 8, 2024 – Stocks in this week’s article are Pilgrim’s Pride (PPC - Free Report) , Carriage Services (CSV - Free Report) and Velocity Financial (VEL - Free Report) .
Buy 3 Top Momentum Stocks for Turnover Tuesday: PPC, CSV, VEL
Turnover Tuesday is a spectacle where investors are apprehensive about stock market returns on a Thursday, start hedging on a Friday, and get involved in outright selling on a Monday, per Brent Donnelly of Spectra Markets. He added that markets tend to bounce back on the following Tuesday.
That’s exactly what happened recently, with Wall Street witnessing a three-day rout, only to recover losses on Monday as investors’ concerns about an economic slump were paused. Despite cooling, the labor market remains healthy and activities in the service sector continue to expand. The rise in interest rate cut bets also appears to have bolstered investors’ confidence (read more: Fed's September Rate Cut Bets Rise: NVDA, GOLD, PHM to Gain).
Investors can make the most of the current market uptrend by investing in sound momentum stocks: Apply the investment strategy of Richard Driehaus, better known as the “buy high and sell higher” theory.
To that end, stocks like Pilgrim’s Pride, Carriage Services and Velocity Financial 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.
These few parameters have narrowed the universe of over 7,743 stocks to only 18.
Here are three of the 18 stocks:
Pilgrim's Pride
Pilgrim's Pride is focusing on strengthening its Prepared Foods category. PPC has a Momentum Score of A. The trailing four-quarter earnings surprise for PPC is 27.3%, on average.
Carriage Services
Carriage Services is a leading provider of death care services and products in the United States. CSV has a Momentum Score of A. The trailing four-quarter earnings surprise for CSV is almost 17%, on average.
Velocity Financial
Velocity Financial provides property mortgage solutions. VEL has a Momentum Score of A. The trailing four-quarter earnings surprise for VEL is 16.4%, 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.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
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/performance for information about the performance numbers displayed in this press release.
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Zacks.com featured highlights include Pilgrim's Pride, Carriage Services and Velocity Financial
For Immediate Release
Chicago, IL – August 8, 2024 – Stocks in this week’s article are Pilgrim’s Pride (PPC - Free Report) , Carriage Services (CSV - Free Report) and Velocity Financial (VEL - Free Report) .
Buy 3 Top Momentum Stocks for Turnover Tuesday: PPC, CSV, VEL
Turnover Tuesday is a spectacle where investors are apprehensive about stock market returns on a Thursday, start hedging on a Friday, and get involved in outright selling on a Monday, per Brent Donnelly of Spectra Markets. He added that markets tend to bounce back on the following Tuesday.
That’s exactly what happened recently, with Wall Street witnessing a three-day rout, only to recover losses on Monday as investors’ concerns about an economic slump were paused. Despite cooling, the labor market remains healthy and activities in the service sector continue to expand. The rise in interest rate cut bets also appears to have bolstered investors’ confidence (read more: Fed's September Rate Cut Bets Rise: NVDA, GOLD, PHM to Gain).
Investors can make the most of the current market uptrend by investing in sound momentum stocks: Apply the investment strategy of Richard Driehaus, better known as the “buy high and sell higher” theory.
To that end, stocks like Pilgrim’s Pride, Carriage Services and Velocity Financial 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.
These few parameters have narrowed the universe of over 7,743 stocks to only 18.
Here are three of the 18 stocks:
Pilgrim's Pride
Pilgrim's Pride is focusing on strengthening its Prepared Foods category. PPC has a Momentum Score of A. The trailing four-quarter earnings surprise for PPC is 27.3%, on average.
Carriage Services
Carriage Services is a leading provider of death care services and products in the United States. CSV has a Momentum Score of A. The trailing four-quarter earnings surprise for CSV is almost 17%, on average.
Velocity Financial
Velocity Financial provides property mortgage solutions. VEL has a Momentum Score of A. The trailing four-quarter earnings surprise for VEL is 16.4%, 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/2318350/buy-3-top-momentum-stocks-for-turnover-tuesday-ppc-csv-vel?art_rec=quote-stock_overview-zacks_news-ID01-txt-2318350
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Contact: Jim Giaquinto
Company: Zacks.com
Phone: 312-265-9268
Email: pr@zacks.com
Visit: https://www.zacks.com/
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
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/performance for information about the performance numbers displayed in this press release.