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3 Stocks Showing Positive Momentum Despite Trade Tensions

  • June 3, 2025

Wall Street may encounter volatility as trade tensions between the United States and China reignite. The United States blamed China for breaching a temporary trade deal, while Beijing accused Washington of failing to support the agreement, a telltale sign that negotiations between the countries have soured.

In this uncertain situation, it’s challenging to find stocks with strong uptrends, as they are mostly showing modest gains. However, by applying Richard Driehaus’s investment strategy, better known as the “buy high and sell higher” theory, one can discover stocks displaying positive momentum. To that end, Urban Outfitters, Inc. URBN, Phibro Animal Health Corporation PAHC and Strattec Security Corporation STRT are demonstrating positive momentum and defying gyrations in the broader market.

A Detailed Look Into the Driehaus Strategy

Regarding the strategy, Driehaus once said, “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 decline and try to guess when it will turn around.” In line with this insight, the American.

The Association of Individual Investors (“AAII”) considered the percentage 50-day moving average as one of the key criteria before creating a portfolio following Driehaus’ philosophy.

It is calculated by dividing the numerator (month-end price minus 50-day moving average of month-end price) by the 50-day moving average of the month-end price. Another momentum indicator — positive relative strength — has also been included in this strategy. A positive percentage 50-day moving average indicates that the stock is trading at a price higher than its 50-day moving average level, indicating an uptrend.

Moreover, AAII found that Driehaus primarily focuses on strong earnings growth rates and impressive earnings projections to pick potential outperformers. Companies with a strong history of beating estimates are also given importance in this strategy, which was made to provide better returns over the long term.

Screening Parameters Using Research Wizard:

To make the strategy more profitable, we have considered only those stocks that have a Zacks Rank #1 (Strong Buy) and a Momentum Score of A or B. Our research shows that stocks with a Style Score of A or B, combined with a Zacks Rank #1 or 2 (Buy), offer the best upside potential.

• Zacks Rank equal to #1

Whether the market is good or bad, stocks with a Zacks Rank #1 have a proven history of outperformance. You can see the complete list of today’s Zacks #1 Rank stocks here.

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