Bet on 3 Momentum Anomaly Stocks to Combat Market Whims

Market Overview - The U.S. equity markets have experienced significant volatility recently due to solid economic data raising concerns about the Federal Reserve's interest rate cuts [1] - The non-manufacturing purchasing managers index (PMI) increased to 54.1 in December from 52.1 in November, indicating strong demand [1] Investor Sentiment - Concerns regarding the incoming Trump administration's policy pledges, such as higher tariffs and mass deportations, have created uncertainty about inflation and growth [2] - Investors are turning to momentum stocks as a strategy to achieve sustained profits amid market fluctuations [2] Momentum Investing Strategy - Momentum investing is based on the principle of "buying high and selling higher," capitalizing on established trends [3] - This strategy aims to profit from the tendency to extrapolate current trends into the future before mean reversion occurs [3] Screening Parameters for Momentum Stocks - The screening process identifies the top 50 stocks with the best percentage price change over the last 52 weeks [5] - From these, the bottom 10 performers over the past week are selected to identify those experiencing a short-term pullback [6] - Stocks with a Zacks Rank 1 (Strong Buy) and a Momentum Style Score of B or better are prioritized for selection [7] Selected Momentum Stocks - Carvana Co. (CVNA): Stock price increased by 320.6% over the past year but declined by 2.5% in the past week; has a Momentum Score of A [8] - InterDigital, Inc. (IDCC): Stock price increased by 78.4% over the past year but declined by 3.4% in the past week; has a Momentum Score of B [9] - Axon Enterprise, Inc. (AXON): Stock price increased by 125.6% over the past year but declined by 5.4% in the past week; has a Momentum Score of B [10]