3 Strong Buy Stocks for the Momentum Investor

Core Insights - Richard Driehaus is recognized for his "buy high and sell higher" strategy, focusing on momentum stocks [1] - The strategy emphasizes investing in stocks that are increasing in price rather than those in decline [2] - Key criteria for stock selection include strong earnings growth rates and a history of beating earnings estimates [4] Stock Selection Criteria - Stocks must have a Zacks Rank of 1 (Strong Buy) and a Momentum Score of A or B to be considered [5][8] - The last 5-year average EPS growth rate should be above 2% to ensure improving business performance [7] - Trailing 12-month EPS growth must be greater than 0 and above the industry median, indicating superior earnings performance [7] - A positive percentage change in the 50-day moving average and relative strength over 4 weeks signals an uptrend [7] Selected Stocks - Brinker International, Inc. (EAT): Owns and operates casual dining restaurants, with a Momentum Score of A and a trailing four-quarter earnings surprise of 24.7% on average [9] - AppLovin Corporation (APP): Provides a software platform for advertisers, also with a Momentum Score of A and a trailing four-quarter earnings surprise of 23.5% on average [10] - Phibro Animal Health Corporation (PAHC): Specializes in animal health and mineral nutrition, holding a Momentum Score of A and a trailing four-quarter earnings surprise of 27.1% on average [11]