Group 1: Government Shutdown and Market Impact - The Senate approved a bipartisan bill to end the 41-day government shutdown, the longest in U.S. history, which has positively impacted Wall Street and created a favorable environment for investing in momentum stocks [1] Group 2: Driehaus Strategy for Momentum Stocks - The Driehaus strategy, known as the "buy high and sell higher" approach, is highlighted as a proven investment method that has successfully identified momentum stocks [2][3] - Stocks selected using the Driehaus strategy include Insulet Corporation (PODD), Celestica Inc. (CLS), and Innodata Inc. (INOD), all of which meet key earnings and momentum criteria [8][10][11][12] Group 3: Key Criteria for Stock Selection - The strategy emphasizes strong earnings growth rates and impressive earnings projections, focusing on companies with a history of beating estimates [5] - Screening parameters include a Zacks Rank of 1 (Strong Buy), a Momentum Score of A or B, and specific EPS growth metrics, narrowing the stock universe to 13 candidates [6][9] Group 4: Company Profiles - **Insulet Corporation (PODD)**: Develops insulin delivery systems with a Momentum Score of A and a trailing four-quarter earnings surprise of 17.8% on average [10] - **Celestica Inc. (CLS)**: Provides global supply chain solutions, also with a Momentum Score of A and a trailing four-quarter earnings surprise of 6.9% on average [11] - **Innodata Inc. (INOD)**: A data engineering company with a Momentum Score of A and a trailing four-quarter earnings surprise of 55.9% on average [12]

Core Insights - October is historically a volatile month for the stock market, making it difficult to identify top momentum stocks. The "buy high and sell higher" approach, known as the Driehaus strategy, is recommended for identifying momentum stocks [1][3] Momentum Stock Selection - Meta Platforms, Inc. (META) and Vertiv Holdings Co. (VRT) have been identified as today's momentum picks using the Driehaus strategy [2][9] - Both companies hold a Zacks Rank of 2 and a Momentum Score of A, indicating strong potential for price appreciation [9][10] Driehaus Strategy Breakdown - The Driehaus strategy emphasizes investing in stocks that are increasing in price rather than those in decline. This approach is supported by the American Association of Individual Investors (AAII), which considers the percentage 50-day moving average as a key criterion [3][4] - Key indicators for the strategy include strong earnings growth rates, impressive earnings projections, and a history of beating estimates [5][8] Stock Screening Methodology - Stocks are screened based on specific criteria, including a Zacks Rank of 1 or 2, a Momentum Score of A or B, and strong EPS growth metrics [6][8] - The screening process narrows down over 7,743 stocks to a select few, with only 37 stocks meeting the criteria [10] Company Profiles - **Meta Platforms**: Develops products for global connectivity through mobile devices and computers. It has a trailing four-quarter earnings surprise of 20.5% on average [10] - **Vertiv**: Designs and produces digital infrastructure technologies for data centers and communication networks, with a trailing four-quarter earnings surprise of 10.7% on average [11]

Core Insights - A potential Federal Reserve rate cut, strong retail sales, and progress in U.S.-China trade talks may positively impact the broader stock market, but not all stocks are guaranteed to perform well. Investors are advised to use the Driehaus strategy to identify the best momentum stocks [1] Group 1: Driehaus Strategy Overview - The Driehaus strategy emphasizes investing in stocks that are increasing in price rather than those in decline, focusing on strong earnings growth and positive momentum indicators [3][5] - Key criteria for the Driehaus strategy include a positive percentage 50-day moving average and strong earnings growth rates, with a focus on companies that consistently beat earnings estimates [4][5] Group 2: Selected Momentum Stocks - AppLovin Corporation (APP), Build-A-Bear Workshop, Inc. (BBW), and Tenet Healthcare Corporation (THC) have been identified as momentum picks based on the Driehaus strategy [2][8] - AppLovin has a Momentum Score of B and an average trailing four-quarter earnings surprise of 22.4% [10] - Build-A-Bear Workshop also has a Momentum Score of B, with an average trailing four-quarter earnings surprise of 21.3% [11] - Tenet Healthcare, with a Momentum Score of B, boasts an average trailing four-quarter earnings surprise of 31.2% [12]

Core Insights - Richard Driehaus has been recognized on Barron's All-Century Team for his "buy high and sell higher" investment strategy, which focuses on selecting top momentum stocks [1] - Currently, NVIDIA Corporation (NVDA), Meta Platforms, Inc. (META), and Amazon.com, Inc. (AMZN) are identified as momentum stocks under the Driehaus strategy [1][8] Driehaus Strategy Overview - Driehaus prefers investing in stocks that are increasing in price rather than those in decline, emphasizing the importance of momentum [2] - The American Association of Individual Investors (AAII) uses the percentage 50-day moving average as a key criterion for portfolio creation based on Driehaus' philosophy [2][3] Momentum Indicators - The strategy incorporates a calculation involving the month-end price and the 50-day moving average to assess momentum [3] - Positive relative strength is also a critical indicator, with a positive percentage 50-day moving average signifying an uptrend [3] Stock Selection Criteria - AAII emphasizes strong earnings growth rates and impressive earnings projections to identify potential outperformers [4] - Stocks with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) and a Momentum Score of A or B are prioritized for better upside potential [5][6] Screening Parameters - Stocks must have a last 5-year average EPS growth rate above 2% and a trailing 12-month EPS growth greater than 0 to indicate superior earnings performance [7] - A positive percentage change in the 50-day moving average and relative strength over four weeks signals an uptrend [7] Highlighted Stocks - NVIDIA (NVDA) has a Zacks Rank of 3 and a Momentum Score of A, with an average trailing four-quarter earnings surprise of 3.6% [9][10] - Meta (META) also holds a Zacks Rank of 3 and a Momentum Score of A, with an average trailing four-quarter earnings surprise of 20.5% [11] - Amazon (AMZN) has a Zacks Rank of 3 and a Momentum Score of A, with an average trailing four-quarter earnings surprise of 23% [12]

Core Insights - The Driehaus strategy, known as "buy high and sell higher," is highlighted as an effective method for selecting top momentum stocks, with Intuit Inc. (INTU) and Ferrari N.V. (RACE) identified as current picks using this strategy [1][8]. 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 momentum indicators such as positive relative strength and the percentage change in the 50-day moving average, indicating an uptrend when the stock price is above its 50-day moving average [3][7]. Screening Parameters - Stocks selected for the Driehaus strategy must have a Zacks Rank of 1 (Strong Buy) and a Momentum Score of A or B, with research indicating that these criteria enhance upside potential [5][9]. - Key parameters include: - Last 5-year average EPS growth rates above 2% [7] - Trailing 12-month EPS growth greater than 0 and above industry median [7] - Last four-quarter average EPS surprise greater than 5% [7] - Positive percentage change in the 50-day moving average and relative strength over 4 weeks [7]. Selected Stocks - Intuit Inc. (INTU) has a Momentum Score of B and an average earnings surprise of 12.2% over the last four quarters [8][10]. - Ferrari N.V. (RACE) holds a Momentum Score of A with an average earnings surprise of 10.8% across the last four quarters [8][11].