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Zacks.com featured highlights include H&R Block, Nova and Jackson Financial
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For Immediate Release
Chicago, IL – August 28, 2024 – Stocks in this week’s article are H&R Block, Inc. (HRB - Free Report) , Nova Ltd. (NVMI - Free Report) and Jackson Financial Inc. (JXN - Free Report) .
Buy 3 Momentum Anomaly Stocks as Markets Rise on Rate-Cut Hint
The broader U.S. equity markets have witnessed a steady uptrend over the past couple of trading sessions, buoyed by strong signals from Federal Reserve Chair Jerome Powell about interest rate cuts happening soon. Despite any definite time frame or the quantum of the proposed rate cuts, markets were quick to respond positively and are currently trading in the vicinity of all-time highs. This followed one of the worst performances at the beginning of the month due to a global market sell-off with the unwinding of the yen “carry trade” as the yen rose in value versus the U.S. dollar.
With a better-than-expected 2.8% annualized GDP growth in the second quarter and solid labor market conditions, it appeared that the economy was back on the growth track, cooling recessionary fears. Amid the uncertainty, investors often seek to employ time-tested winning strategies to fetch sustained profits. One of the most successful game plans to beat the blues is to bet on momentum stocks like H&R Block, Inc., Nova Ltd. and Jackson Financial Inc. when value or growth investing fails to generate the desired profits.
This approach primarily tends to follow the adage, “the trend is your friend.” At its core, momentum investing is “buying high and selling higher.” It is based on the idea that once a stock establishes a trend, it is more likely to continue in that direction because of the momentum that is already behind it. Momentum investing is a way to profit from the general human tendency to extrapolate current trends into the future. It is based on that gap in time before the mean reversion occurs, i.e., before prices become rational again.
Momentum strategies have been known to be alpha-generative over a long period and across market stages. So, this strategy is quite tricky to implement, as detecting these trends is no child’s play. Here, we have created a strategy to help investors get in on these fast movers and rake in handsome gains. Our screen will help you benefit from both long-term price momentum and a short-term pullback in price.
Here are three stocks out of the four that made it through this screen:
Headquartered in Kansas City, MO, H&R Block is a leading provider of tax preparation services. The company provides assisted income tax return preparation, do-it-yourself tax solutions and other products and services associated with income tax return preparation in the United States, Canada and Australia. The stock has surged 60.1% in the past year but declined 2.3% in the past week. H&R Block has a Momentum Score of B.
Headquartered in Rehovot, Israel, Nova designs, develops, produces and sells process control systems used in the manufacture of semiconductors in Israel, Taiwan, the United States, China, Korea and internationally. Its product portfolio includes a set of metrology platforms for dimensional, films and materials and chemical metrology measurements for process control for various semiconductor manufacturing process steps, including lithography, chemical mechanical planarization, deposition, electrochemical plating and advanced packaging. The stock has gained 81.1% in the past year but declined 6.6% in the past week. Nova has a Momentum Score of A.
Headquartered in Lansing, MI, Jackson offers a wide range of annuities to retail investors in the United States. The company operates through three segments: Retail Annuities, Institutional Products, and Closed Life and Annuity Blocks. The stock has rallied 147.4% in the past year but lost 3.4% in the past week. Jackson has a Momentum Score of B.
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 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 H&R Block, Nova and Jackson Financial
For Immediate Release
Chicago, IL – August 28, 2024 – Stocks in this week’s article are H&R Block, Inc. (HRB - Free Report) , Nova Ltd. (NVMI - Free Report) and Jackson Financial Inc. (JXN - Free Report) .
Buy 3 Momentum Anomaly Stocks as Markets Rise on Rate-Cut Hint
The broader U.S. equity markets have witnessed a steady uptrend over the past couple of trading sessions, buoyed by strong signals from Federal Reserve Chair Jerome Powell about interest rate cuts happening soon. Despite any definite time frame or the quantum of the proposed rate cuts, markets were quick to respond positively and are currently trading in the vicinity of all-time highs. This followed one of the worst performances at the beginning of the month due to a global market sell-off with the unwinding of the yen “carry trade” as the yen rose in value versus the U.S. dollar.
With a better-than-expected 2.8% annualized GDP growth in the second quarter and solid labor market conditions, it appeared that the economy was back on the growth track, cooling recessionary fears. Amid the uncertainty, investors often seek to employ time-tested winning strategies to fetch sustained profits. One of the most successful game plans to beat the blues is to bet on momentum stocks like H&R Block, Inc., Nova Ltd. and Jackson Financial Inc. when value or growth investing fails to generate the desired profits.
This approach primarily tends to follow the adage, “the trend is your friend.” At its core, momentum investing is “buying high and selling higher.” It is based on the idea that once a stock establishes a trend, it is more likely to continue in that direction because of the momentum that is already behind it. Momentum investing is a way to profit from the general human tendency to extrapolate current trends into the future. It is based on that gap in time before the mean reversion occurs, i.e., before prices become rational again.
Momentum strategies have been known to be alpha-generative over a long period and across market stages. So, this strategy is quite tricky to implement, as detecting these trends is no child’s play. Here, we have created a strategy to help investors get in on these fast movers and rake in handsome gains. Our screen will help you benefit from both long-term price momentum and a short-term pullback in price.
Here are three stocks out of the four that made it through this screen:
Headquartered in Kansas City, MO, H&R Block is a leading provider of tax preparation services. The company provides assisted income tax return preparation, do-it-yourself tax solutions and other products and services associated with income tax return preparation in the United States, Canada and Australia. The stock has surged 60.1% in the past year but declined 2.3% in the past week. H&R Block has a Momentum Score of B.
Headquartered in Rehovot, Israel, Nova designs, develops, produces and sells process control systems used in the manufacture of semiconductors in Israel, Taiwan, the United States, China, Korea and internationally. Its product portfolio includes a set of metrology platforms for dimensional, films and materials and chemical metrology measurements for process control for various semiconductor manufacturing process steps, including lithography, chemical mechanical planarization, deposition, electrochemical plating and advanced packaging. The stock has gained 81.1% in the past year but declined 6.6% in the past week. Nova has a Momentum Score of A.
Headquartered in Lansing, MI, Jackson offers a wide range of annuities to retail investors in the United States. The company operates through three segments: Retail Annuities, Institutional Products, and Closed Life and Annuity Blocks. The stock has rallied 147.4% in the past year but lost 3.4% in the past week. Jackson has a Momentum Score of B.
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 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/2327696/buy-3-momentum-anomaly-stocks-as-markets-rise-on-rate-cut-hint
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.