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Zacks.com featured highlights include Coastal Financial, Esquire Financial and Mercantile Bank
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For Immediate Release
Chicago, IL – October 11, 2024 – Stocks in this week’s article are Coastal Financial Corp. (CCB - Free Report) , Esquire Financial Holdings, Inc. (ESQ - Free Report) and Mercantile Bank Corp. (MBWM - Free Report) .
3 Strong-Buy Momentum Stocks as Bull Market Reaches 2-Year Mark
Entering the fourth quarter of 2024, Wall Street maintained strong momentum, positively closing the first nine months. The S&P 500, the Dow and the Nasdaq gained 20.8%, 12.3% and 21.2%, respectively, in the first three quarters of the year, and if history is any guide, they are most likely to continue their winning streak in the fourth quarter. Most importantly, if the S&P 500 keeps gaining until December, it would be the second successive year that the index has soared over 20%, a milestone not seen since 1998, per Dow Jones Market Data.
The Federal Reserve cut interest rates by 50 basis points, and the U.S. economy added a solid 254,000 jobs last month, which has already given the stock market the required boost to climb upward. Undoubtedly, the fourth quarter may witness elevated volatility at times due to the Middle East crisis and presidential election, but broadly investors are optimistic about the outlook.
Thus, investors should capitalize on the extended market upswing despite occasional volatility by investing in sound momentum stocks and applying Richard Driehaus's investment strategy, better known as the “buy high and sell high” theory.
To that end, stocks like Corcept Therapeutics Inc., Abercrombie & Fitch Co. and HCI Group, Inc. have been selected as today’s momentum picks 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 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 10.
Here are three of the 10 stocks:
Corcept Therapeutics
Corcept Therapeutics develops drugs for severe metabolic, psychiatric, and oncology disorders. CORT has a Momentum Score of A. The trailing four-quarter earnings surprise for CORT is 24.4%, on average.
Abercrombie & Fitch
Abercrombie & Fitch sells premium casual clothing for men, women and kids. ANF has a Momentum Score of A. The trailing four-quarter earnings surprise for ANF is 28%, on average.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
HCI Group
HCI Group is involved in various business activities such as insurance, IT, real estate, and reinsurance. HCI has a Momentum Score of A. The trailing four-quarter earnings surprise for HCI is 117.7%, 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 Coastal Financial, Esquire Financial and Mercantile Bank
For Immediate Release
Chicago, IL – October 11, 2024 – Stocks in this week’s article are Coastal Financial Corp. (CCB - Free Report) , Esquire Financial Holdings, Inc. (ESQ - Free Report) and Mercantile Bank Corp. (MBWM - Free Report) .
3 Strong-Buy Momentum Stocks as Bull Market Reaches 2-Year Mark
Entering the fourth quarter of 2024, Wall Street maintained strong momentum, positively closing the first nine months. The S&P 500, the Dow and the Nasdaq gained 20.8%, 12.3% and 21.2%, respectively, in the first three quarters of the year, and if history is any guide, they are most likely to continue their winning streak in the fourth quarter. Most importantly, if the S&P 500 keeps gaining until December, it would be the second successive year that the index has soared over 20%, a milestone not seen since 1998, per Dow Jones Market Data.
The Federal Reserve cut interest rates by 50 basis points, and the U.S. economy added a solid 254,000 jobs last month, which has already given the stock market the required boost to climb upward. Undoubtedly, the fourth quarter may witness elevated volatility at times due to the Middle East crisis and presidential election, but broadly investors are optimistic about the outlook.
Thus, investors should capitalize on the extended market upswing despite occasional volatility by investing in sound momentum stocks and applying Richard Driehaus's investment strategy, better known as the “buy high and sell high” theory.
To that end, stocks like Corcept Therapeutics Inc., Abercrombie & Fitch Co. and HCI Group, Inc. have been selected as today’s momentum picks 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 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 10.
Here are three of the 10 stocks:
Corcept Therapeutics
Corcept Therapeutics develops drugs for severe metabolic, psychiatric, and oncology disorders. CORT has a Momentum Score of A. The trailing four-quarter earnings surprise for CORT is 24.4%, on average.
Abercrombie & Fitch
Abercrombie & Fitch sells premium casual clothing for men, women and kids. ANF has a Momentum Score of A. The trailing four-quarter earnings surprise for ANF is 28%, on average.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
HCI Group
HCI Group is involved in various business activities such as insurance, IT, real estate, and reinsurance. HCI has a Momentum Score of A. The trailing four-quarter earnings surprise for HCI is 117.7%, 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/2348540/3-strong-buy-momentum-stocks-as-bull-market-nears-2-year-mark?art_rec=quote-stock_overview-zacks_news-ID05-txt-2348540
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.