Zacks.com featured highlights include AppLovin, Build-A-Bear Workshop and Tenet Healthcare
For Immediate Release
Chicago, IL – September 18, 2022 – Stocks in this week’s article are AppLovin Corp. APP, Build-A-Bear Workshop, Inc. BBW and Tenet Healthcare Corp. THC.
Strong Buy Alerts: AppLovin & 2 More Momentum Stocks for Big Gains
A potential Federal Reserve rate cut, strong retail sales and new progress in the U.S.-China trade talks may help the broader stock market scale upward in the near future. But that doesn’t guarantee that all stocks will gain traction. Instead, it is judicious for investors to apply the Driehaus strategy to select the best momentum stocks. No doubt, it’s a successful investment strategy that helped Richard Driehaus earn a spot on Barron’s All-Century Team.
To that end, stocks like AppLovin Corp., Build-A-Bear Workshop, Inc. and Tenet Healthcare 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.
Here are three of the 19 stocks:
AppLovin
AppLovin is involved in developing a software platform that helps advertisers optimize marketing and monetize content worldwide. Its operations are divided into two core segments: Advertising and Apps. APP has a Momentum Score of B. The trailing four-quarter earnings surprise for APP is 22.4%, on average.
Build-A-Bear Workshop
Build-A-Bear Workshop is a multi-channel retailer of plush animals and associated products in the United States and globally. BBW has a Momentum Score of B. The trailing four-quarter earnings surprise for BBW is 21.3%, on average.
Tenet Healthcare
Diversified healthcare services company, Tenet Healthcare, has a Momentum Score of B. This U.S.-based company’s four-quarter earnings surprise is 31.2%, on average.
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For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2753046/strong-buy-alerts-applovin-2-more-momentum-stocks-for-big-gains
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