3 Top Performing Stocks Set for Significant Growth at This Moment

Spotting Top Momentum Stocks with the Driehaus Approach

The Driehaus method is a powerful tool for finding stocks with strong upward momentum. Built on the philosophy of "buying high and selling even higher," this strategy was instrumental in earning Richard Driehaus a place among Barron's All-Century Team of investors.

Applying this approach, stocks such as Strategic Education, Inc., TechnipFMC plc, and Orla Mining Ltd. have emerged as standout momentum opportunities today.

Understanding the Driehaus Investment Method

Richard Driehaus once explained his preference for investing in rising stocks rather than trying to predict a turnaround in declining ones. Reflecting this mindset, the American Association of Individual Investors (AAII) uses the percentage difference between a stock’s month-end price and its 50-day moving average as a key metric when constructing portfolios inspired by Driehaus’ principles.

This metric is determined by subtracting the 50-day moving average from the month-end price, then dividing by the 50-day moving average. The strategy also incorporates positive relative strength as an additional momentum signal. When a stock’s price is above its 50-day moving average, it suggests a positive trend.

Additionally, AAII’s research highlights Driehaus’ focus on companies with robust earnings growth and strong future earnings forecasts. Firms with a consistent record of surpassing earnings expectations are also favored, aiming to deliver superior long-term returns.

Key Screening Criteria with Research Wizard

To refine the selection process, only stocks with a Zacks Rank #1 (Strong Buy) and a Momentum Score of A or B were considered. Research indicates that combining a top Style Score with a Zacks Rank #1 maximizes upside potential.

• Zacks Rank of #1: Stocks with this ranking have consistently outperformed, regardless of market conditions.
• Average EPS growth over the past 5 years above 2%: Indicates a history of improving profitability.
• Trailing 12-month EPS growth above zero and above the industry median: Demonstrates earnings growth that outpaces peers.
• Average EPS surprise over the last four quarters greater than 5%: Consistent positive surprises often lead to stronger price performance.
• Positive change in 50-day moving average and 4-week relative strength: Signals a stock in an upward trend.
• Momentum Score of A or B: A high momentum score suggests the stock is well-positioned to benefit from ongoing momentum.

Applying these filters reduced the universe of over 7,700 stocks to just 14 top candidates.

Below are three notable picks from this select group:

Strategic Education

Strategic Education offers both campus-based and online higher education programs, as well as career-focused training. The company boasts a Momentum Score of A. Over the past four quarters, STRA has delivered an average earnings surprise of 19.9%.

TechnipFMC

TechnipFMC specializes in providing technology, systems, and services for oil and gas projects worldwide. With a Momentum Score of A, FTI has achieved an average earnings surprise of 15.9% over the last four quarters.

Orla Mining

Orla Mining is engaged in the exploration, development, and operation of mineral properties. The company has a Momentum Score of B, and ORLA has posted an average earnings surprise of 9% in the past four quarters.

Explore Zacks' Top Stock Picks

Since 2000, Zacks’ leading stock selection strategies have dramatically outperformed the S&P’s average annual gain of 7.7%. In fact, these strategies have delivered remarkable average yearly returns of:

• +48.4%
• +50.2%
• +56.7%

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