Buy 3 Momentum Anomaly Stocks as Tariffs Take a Toll on Markets

Group 1: Market Overview - The U.S. equity markets experienced significant volatility due to President Trump's tariff policies, particularly the 25% tariffs on steel and aluminum imports from Canada and Mexico, which led to retaliatory measures from Canada and the European Union [1] - Canada proposed a 25% import duty on over $20 billion worth of U.S. goods, while the European Union announced counter-tariffs on $28.33 billion worth of U.S. imports starting in April [1] Group 2: Economic Indicators - A better-than-expected Consumer Price Index (CPI) reading for February showed a 0.2% increase from the previous month and a 2.8% increase year-over-year, alleviating some recession concerns [2] Group 3: Investment Strategies - Momentum investing is highlighted as a strategy to capitalize on current trends, based on the principle of "buying high and selling higher," which relies on the tendency of stocks to continue in the same direction once a trend is established [3] - Momentum strategies have been effective in generating alpha over time and across various market conditions, although they require skill in trend detection [4] Group 4: Screening Parameters for Momentum Stocks - The screening process for momentum anomaly stocks includes selecting the top 50 stocks with the best percentage price change over the last 52 weeks, followed by identifying the 10 worst performers over the past week to find those experiencing a short-term pullback [5][6] - Stocks with a Zacks Rank 1 (Strong Buy) and a Momentum Style Score of A or B are likely to outperform others [7] Group 5: Featured Stocks - Masimo Corporation (MASI) has seen a 25% increase in stock price over the past year but a 9.9% decline in the past week, with a Momentum Score of A [9] - Robinhood Markets, Inc. (HOOD) has experienced a 126.8% increase in the past year but a 19.1% decline in the past week, also holding a Momentum Score of A [10] - Discover Financial Services (DFS) has surged 29.9% in the past year but declined 9.6% in the past week, maintaining a Momentum Score of A [11]