Buy high and sell higher theory

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Watch These 3 "Mag 7" Stocks Showing Positive Momentum
ZACKS· 2025-08-04 20:01
Group 1 - Richard Driehaus has been recognized in Barron's All-Century Team for his "buy high and sell higher" strategy, which effectively identifies top momentum stocks [1] - The strategy emphasizes investing in stocks that are increasing in price rather than those in decline, aligning with the philosophy of the American Association of Individual Investors (AAII) [2][4] - Key criteria for the Driehaus strategy include a positive percentage 50-day moving average and strong earnings growth rates, which are essential for selecting potential outperformers [3][4] Group 2 - The screening parameters for the Driehaus strategy include a Zacks Rank of 3 (Hold) and a Momentum Score of A or B, which have shown solid upside potential [5][6] - Stocks must have a last 5-year average EPS growth rate above 2%, trailing 12-month EPS growth greater than 0, and a positive percentage change in the 50-day moving average [7] - The final momentum picks include Amazon (AMZN), Alphabet (GOOGL), and Meta Platforms (META), all of which demonstrated strong EPS growth and rising momentum indicators [9][10][11][12]
3 Stocks Showing Positive Momentum Despite Trade Tensions
ZACKS· 2025-06-03 20:00
Group 1: Market Overview - Wall Street may face volatility due to renewed trade tensions between the United States and China, with both countries blaming each other for breaching a temporary trade deal [1] Group 2: Investment Strategy - Richard Driehaus's investment strategy, known as "buy high and sell higher," can help identify stocks with positive momentum despite broader market fluctuations [2][3] - The strategy emphasizes investing in stocks that are increasing in price rather than those in decline, aiming for better long-term returns [3][6] Group 3: Screening Parameters - The Association of Individual Investors (AAII) uses the percentage 50-day moving average and positive relative strength as key criteria for stock selection [4][5] - Stocks with a Zacks Rank 1 (Strong Buy) and a Momentum Score of A or B are considered to have the best upside potential [7][8] Group 4: Stock Performance - Urban Outfitters, Inc. (URBN), Phibro Animal Health Corporation (PAHC), and Strattec Security Corporation (STRT) are highlighted as stocks demonstrating positive momentum and strong earnings growth [9][11][12][13] - URBN has a trailing four-quarter earnings surprise of 29%, PAHC has 30.6%, and STRT has an impressive 195.8% average surprise over four quarters [11][12][13]