Workflow
Technology and Communications
icon
Search documents
Buy 3 Momentum Anomaly Stocks as Volatility Hits Markets Hard
ZACKS· 2026-02-24 14:56
Market Overview - The U.S. equity markets experienced significant volatility due to concerns over AI disruption, geopolitical unrest, and the annulment of President Trump's tariffs, leading to a downtrend exacerbated by sticky inflation and lower-than-expected GDP growth of 1.4% compared to the anticipated 2.5% [1] Momentum Investing Strategy - Momentum investing is characterized by the strategy of "buying high and selling higher," based on the belief that stocks with established trends are likely to continue in that direction [3] - This strategy has been shown to generate alpha over long periods and across various market conditions, although it requires skill in detecting trends [4] Screening Parameters for Momentum Stocks - The screening process identifies the top 50 stocks with the best percentage price change over the last 52 weeks, ensuring selection of stocks that have appreciated steadily [5] - From these, the bottom 10 performers over the past week are chosen to identify those experiencing short-term pullbacks [6] - Stocks with a Zacks Rank of 1 (Strong Buy) are included, as they have a history of outperformance [6] - A Momentum Style Score of B or better is required, indicating favorable trading conditions [7] - Stocks must have a current price greater than $5 and be among the top 3000 by market capitalization to ensure stability [8] Selected Momentum Stocks - Brookdale Senior Living Inc. (BKD) has seen a price increase of 173.8% over the past year but experienced a 6.5% decline in the last week, earning a Momentum Score of A [9][11] - Lumen Technologies, Inc. (LUMN) has increased by 72.1% in the past year but lost 11.2% in the last week, resulting in a Momentum Score of B [9][13] - Gold.com, Inc. (GOLD) has surged 114.9% over the past year but also faced a 6.5% decline in the last week, achieving a Momentum Score of B [9][15]