For Immediate Release
Chicago, IL - February 20, 2018 - Stocks in this week's article Aaron's, Inc. AAN , Shutterfly, Inc. SFLY , TD Ameritrade Holding Corporation AMTD , Houlihan Lokey, Inc. HLI and Louisiana-Pacific Corporation LPX .
5 Top Momentum Stocks Supported by Driehaus Strategy
Driehaus strategy, which is based on the "buy high and sell higher" principle, is used to invest in momentum stocks. This investment approach is ideal for those who have a high-risk appetite. The success of this particular investment strategy helped Richard Driehaus earn a place in Barron's All-Century Team.
Portfolios such as that of The American Association of Individual Investors ("AAII") proved that the strategy has the potential to offer high returns. AAII's portfolio, which was developed following the strategy, returned 13.5% and 18.1% in the five and 10- year time frames, respectively, compared with -1.1% and 4.2% returns for the S&P 500. Thus, investors with a high risk appetite may opt for this strategy.
A Look at Driehaus' Strategy
After a detailed study of the Driehaus' strategy, AAII concluded that it mainly focuses on strong earnings growth rates and impressive prospects to pick potential outperformers. While this strategy was made to provide better returns over the longer haul, companies with a strong history of beating estimates were also given importance.
"I would much rather invest in a stock that's increasing in price and take the risk that it may begin to decline than invest in a stock that's already in a decline and try to guess when it will turn around," Driehaus had said in an interview.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Shutterfly, Inc. (SFLY): Free Stock Analysis Report Louisiana-Pacific Corporation (LPX): Free Stock Analysis Report TD Ameritrade Holding Corporation (AMTD): Free Stock Analysis Report Aaron's, Inc. (AAN): Free Stock Analysis Report Houlihan Lokey, Inc. (HLI): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research