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Zacks.com featured highlights Brinker, AppLovin and Phibro Animal Health
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For Immediate Release
Chicago, IL – February 27, 2025 – Stocks in this week’s article are Brinker International, Inc. (EAT - Free Report) , AppLovin Corp. (APP - Free Report) and Phibro Animal Health Corp. (PAHC - Free Report) .
3 Strong-Buy Stocks for the Momentum Investor
Richard Driehaus is recognized in Barron’s All-Century Team for his approach of "buy high and sell higher," which is a successful strategy for selecting momentum stocks.
To that end, stocks like Brinker International, Inc., AppLovin Corp. and Phibro Animal Health Corp. 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.
We use that basis to determine our stock selections using Zack’s Research Wizard Tool.
These few parameters have narrowed the universe of more than 7,743 stocks to only 20.
Here are three of the 20 stocks:
Brinker International
Brinker International owns, develops, operates and franchises casual dining restaurants in the United States and globally. It has a Momentum Score of A. The trailing four-quarter earnings surprise for EAT is 24.7%, on average.
AppLovin
AppLovin creates a software platform to help advertisers market and monetize content globally. It has a Momentum Score of A. The trailing four-quarter earnings surprise for APP is 23.5%, on average.
Phibro Animal Health
Phibro Animal Health is a global company specializing in animal health and mineral nutrition. It has a Momentum Score of A. The trailing four-quarter earnings surprise for PAHC is 27.1%, 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 Brinker, AppLovin and Phibro Animal Health
For Immediate Release
Chicago, IL – February 27, 2025 – Stocks in this week’s article are Brinker International, Inc. (EAT - Free Report) , AppLovin Corp. (APP - Free Report) and Phibro Animal Health Corp. (PAHC - Free Report) .
3 Strong-Buy Stocks for the Momentum Investor
Richard Driehaus is recognized in Barron’s All-Century Team for his approach of "buy high and sell higher," which is a successful strategy for selecting momentum stocks.
To that end, stocks like Brinker International, Inc., AppLovin Corp. and Phibro Animal Health Corp. 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.
We use that basis to determine our stock selections using Zack’s Research Wizard Tool.
These few parameters have narrowed the universe of more than 7,743 stocks to only 20.
Here are three of the 20 stocks:
Brinker International
Brinker International owns, develops, operates and franchises casual dining restaurants in the United States and globally. It has a Momentum Score of A. The trailing four-quarter earnings surprise for EAT is 24.7%, on average.
AppLovin
AppLovin creates a software platform to help advertisers market and monetize content globally. It has a Momentum Score of A. The trailing four-quarter earnings surprise for APP is 23.5%, on average.
Phibro Animal Health
Phibro Animal Health is a global company specializing in animal health and mineral nutrition. It has a Momentum Score of A. The trailing four-quarter earnings surprise for PAHC is 27.1%, 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/2422234/3-strong-buy-stocks-for-the-momentum-investor
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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.