Zacks.com presented highlights Builders FirstSource, National Fuel Gas and EOG Resources

0

For immediate release

Chicago, IL – April 29, 2022 – The stocks in this week’s article are Builders FirstSource BLDR, National Fuel Gas Co. NFG and EOG Resources EOG.

3 Best Momentum Stocks to Invest in Using the Driehaus Strategy

The Driehaus strategy can be used to pick the best momentum stocks with the “buy high and sell higher” theory. Undoubtedly, it was a successful investment strategy that helped Richard Driehaus earn a spot on Barron’s All-Century team.

To this end, actions like FirstSource Builders, National Fuel Gas Co. and EOG Resources were selected as the momentum pick for the day using the Driehaus strategy.

A detailed overview of the Driehaus strategy

Regarding strategy, Driehaus once said, “I would much rather invest in a stock that is going up in price and take the risk that it starts to fall than invest in a stock that is already down and try to guess when it will recover.” In line with this idea, the American Association of Individual Investors (AAII) considered the percentage of the 50-day moving average as one of the key criteria before creating a portfolio according to the philosophy of Driehaus.

It is calculated by dividing the numerator (month-end price minus the 50-day moving average of the 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 50-day moving average percentage indicates that the stock is trading at a price above its 50-day moving average level, indicating an upward trend.

Additionally, AAII found that Driehaus is primarily focused on strong earnings growth rates and impressive earnings projections to pick potential outperformers. Companies with a solid history of exceeding estimates are also given importance in this strategy, which has been designed to provide better long-term returns.

Here are three of the 23 actions:

FirstSource Builders is the largest supplier of building materials, manufactured components and construction services to professional home builders, contractors, remodelers and consumers. Builders FirstSource has a Momentum Score of B. The past four quarter earnings surprise for BLDR is nearly 74%, on average.

Domestic fuel gas is an integrated energy company with natural gas assets located in the prolific Appalachian Basin and oil producing assets in California. National Fuel Gas has a Momentum score of B. The last four quarter earnings surprise for NFG is 12.4% on average.

EOG Resources is primarily involved in the exploration and production of oil and natural gas. EOG Resources has a Momentum score of A. The earnings surprise for the last four quarters for EOG is 7.1% on average.

You can get the rest of the stocks on this list by signing up for your free 2-week trial to Research Assistant now and start using this screen in your own trading. Moreover, you can also create your own strategies and test them before diving into investing.

The research assistant is a great starting point. It’s easy to use. Everything is in plain language. And it’s very intuitive. Start your search assistant trial today. And the next time you’re reading an economic report, open up the research assistant, plug in your findings, and see what gems come out.

Click here to sign up for a free trial of Research Assistant today.

For the rest of this article on Screen of the Week, please visit Zacks.com at: https://www.zacks.com/stock/news/1910020/3-best-momentum-stocks-to-invest-in-using-driehaus-strategy

Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in the options mentioned herein. An affiliated investment advisory firm may hold or have shorted securities and/or hold long and/or short positions in options mentioned herein.

About the week screen

Zacks.com created the first and best screening system on the web, earning it the “#1 Stock Screening Site” accolade from Money Magazine. But powerful screening tools are just the start. That’s why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.

Solid stocks that should make headlines

Many are low profile and fly under Wall Street’s radar. They are almost unknown to the general public. Yet the 220 “strong buys” in today’s Zacks #1 ranking were generated by the stock picking system that more than doubled the market from 1988 to 2016. Its average gain was +25% per year. See these high-potential stocks for free >>.

Follow us on twitter: https://www.twitter.com/zacksresearch

Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch

Zacks Investment Research is under common control with affiliated entities (including broker and investment adviser), which may engage in transactions involving the aforementioned securities for clients of such affiliates.

Contact: Jim Giaquinto

Company: Zacks.com

Phone: 312-265-9268

E-mail: pr@zacks.com

To 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 about this resource to you subject to the Zacks “Terms and Conditions of Service” disclaimer. www.zacks.com/disclaimer.

Past performance is not indicative of future results. The potential for loss is inherent in any investment. This document is provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold any security. No recommendation or advice is given as to whether any investment is suitable for any particular investor. It should not be assumed that investments in the securities, companies, sectors or markets identified and described have been or will be profitable. All information is current as of the date hereof and is subject to change without notice. The views or opinions expressed may not reflect those of the company as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management of securities. These returns come from hypothetical portfolios composed of stocks with Zacks Rank = 1 that have been rebalanced monthly without transaction fees. These are not the returns of actual stock portfolios. The S&P 500 is an unmanaged index. To visit https://www.zacks.com/performance for more information on the performance figures displayed in this press release.

7 best stocks for the next 30 days

Just Released: Experts distill 7 elite stocks from the current Zacks No. 1 Ranking 220 Strong Buys list. They consider these tickers “most likely for early price increases.”

Since 1988, the full list has beaten the market more than 2 times with an average gain of +25.4% per year. So be sure to give your immediate attention to these 7 handpicked ones.

Discover them now >>

Click to get this free report

EOG Resources, Inc. (EOG): Free Stock Analysis Report

Builders FirstSource, Inc. (BLDR): Free Stock Analysis Report

National Fuel Gas Company (NFG): Free Inventory Analysis Report

To read this article on Zacks.com, click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



Source link

Share.

Comments are closed.