3 Momentum Anomaly Stocks to Buy as Election Rally Fizzles

Market Overview - The U.S. equity markets have experienced significant volatility recently, with a postelection rally losing momentum due to concerns over potential policy changes under the new administration [1] - Apprehensions regarding the pace of interest rate cuts have also weighed on the markets, despite healthy economic growth providing some leeway for slower monetary easing [1] - Solid earnings from blue-chip technology stocks have contributed to a partial recovery in the markets [1] Momentum Investing Strategy - Investors are looking towards momentum stocks, such as Doximity, Inc. (DOCS), Impinj, Inc. (PI), and Innodata Inc. (INOD), as a strategy to generate sustained profits amid market uncertainty [2] - Momentum investing is based on the principle of "buying high and selling higher," capitalizing on established trends that are likely to continue due to existing momentum [3] - This strategy has been shown to generate alpha over long periods and across various market conditions, although it requires skill to detect trends effectively [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 to ensure steady appreciation [5] - From these, the bottom 10 performers over the past week are selected to identify those experiencing short-term pullbacks [6] - Stocks with a Zacks Rank 1 (Strong Buy) and a Momentum Style Score of A or B are prioritized, as they have a proven history of outperformance [7] Selected Stocks - Doximity has seen a price increase of 113.8% over the past year but has declined by 14.8% in the past week, with a Momentum Score of A [9] - Impinj's stock has rallied 112.9% in the past year but has decreased by 11.7% in the past week, holding a Momentum Score of B [10] - Innodata has experienced a remarkable 380.2% increase in the past year, with a recent decline of 9.7% in the past week, and it has a Momentum Score of A [11]