3 Top Momentum Stocks for May: NOMD, HWKN, PCB

Core Insights - Stocks typically face challenges in May, making it difficult to select top momentum stocks, but the Richard Driehaus strategy, which advocates "buy high and sell higher," can be applied to identify potential picks [1][2] Driehaus Strategy Overview - Richard Driehaus emphasized a preference for investing in stocks that are increasing in price rather than those in decline, which aligns with the philosophy of the American Association of Individual Investors (AAII) that uses the percentage 50-day moving average as a key criterion [2][4] - The strategy incorporates a calculation that compares the month-end price to the 50-day moving average, along with a positive relative strength indicator, to identify stocks in an uptrend [3][4] Screening Parameters - The strategy focuses on stocks with a Zacks Rank of 1 (Strong Buy) and a Momentum Score of A or B, which historically have shown better upside potential [5][6] - Key screening parameters include: - Last 5-year average EPS growth rates above 2% to ensure improving business performance [7] - Trailing 12-month EPS growth greater than 0 and above the industry median, indicating superior earnings performance [7] - Last four-quarter average EPS surprise greater than 5%, suggesting better price performance [7] - Positive percentage change in the 50-day moving average and relative strength over 4 weeks, signaling an uptrend [7][8] Selected Momentum Stocks - Nomad Foods Limited (NOMD) produces and distributes frozen food products globally, with a Momentum Score of A and an average trailing four-quarter earnings surprise of 5% [9] - Hawkins, Inc. (HWKN) is a U.S. specialty chemical and ingredients company, holding a Momentum Score of B and an average trailing four-quarter earnings surprise of 6.1% [10] - PCB Bancorp (PCB) provides banking services to small businesses and individuals, with a Momentum Score of A and an average trailing four-quarter earnings surprise of 7.4% [11]