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Zacks.com featured highlights include: MarketAxess, Domino's Pizza and Neurocrine Biosciences

For Immediate Release

Chicago, IL – July 24, 2020 – Stocks in this week’s article are MarketAxess Holdings Inc. MKTX, Domino's Pizza, Inc. DPZ and Neurocrine Biosciences, Inc. NBIX.

3 Stocks with Momentum Anomalies to Buy This Earnings Season

The growth picture for second-quarter earnings is pretty weak, with S&P 500 earnings expected to decline the most since the 2008 recession. Also, most companies are still unable to provide guidance on account of pandemic-driven uncertainties.

But it isn’t all doom and gloom as we are starting to see some early signs of improvement in earnings estimates for the current period and beyond. The recent flow of economic readings has broadly been positive, suggesting that the longed-for recovery is in place. However, the concern is that the surge in new infections will derail the momentum.

Investors should remember that the secret to making money, regardless of market conditions, is to buy stocks that have been burned but still have the potential to soar. Wall Street ended higher on Jul 22, with the Dow up 0.62%, the S&P up 0.58% and the Nasdaq up 0.24%, after mixed corporate earnings results and stimulus negotiations in Washington.

Against this backdrop, reacting hastily to volatile trends can cause more damage to an investor’s portfolio returns than an actual downturn. When value or growth investing fails to fetch sustained profits, one should explore another time-tested winning strategy that simply bets on frontrunner stocks. This is known as momentum investing.

At the core, momentum investing is about buying high, selling higher. It is based on the idea that once a stock establishes a trend, it is likely to continue in that direction. There’s a whole list of behavioral biases that most investors exhibit. For instance, some investors are anxious about booking losses and hence hold on to losing stocks for too long, hoping for a rebound in prices.

Meanwhile, a few investors sell their winners way too early. Momentum investing is one of the best strategies to avoid such mistakes. So, it’s a way to profit from the general human tendency to extrapolate current trends into the future. Thus, momentum investing is based on that gap in time, which exists before the mean reversion occurs i.e. before prices become rational again.

Here, we have created a strategy that will help investors get in on these fast movers when there is a short-term pullback in price and rake in handsome gains.

For the rest of this Screen of the Week article please visit Zacks.com at:https://www.zacks.com/stock/news/1012362/3-stocks-with-momentum-anomaly-to-buy-this-earnings-season

Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.

About Screen of the Week

Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine.  But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.

Strong Stocks that Should Be in the News

Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performancefor information about the performance numbers displayed in this press release.

 

 

 

                                                                                    


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Dominos Pizza Inc (DPZ): Free Stock Analysis Report

Neurocrine Biosciences, Inc. (NBIX): Free Stock Analysis Report

MarketAxess Holdings Inc. (MKTX): Free Stock Analysis Report

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