Skip to main content

Getty Images/Pixland

What are we looking for?

U.S. stocks that are riding a momentum wave.

Craig McGee, senior consultant at Morningstar Canada, is helping us out again with a look at his firm's top-performing strategy this year. It consists of looking for firms with strongly rising share prices as well as soaring earnings.

Story continues below advertisement

How we did it

Mr. McGee searched for U.S. firms that combine strong price performance over the past three, six and nine months with high revisions to analysts' consensus earnings estimates over the past one, two and three months.

To be included, companies must show positive growth in earnings and have a flat or positive surprise in their most recent earnings release.

The full Morningstar CPMS Price Momentum strategy uses a portfolio of 40 companies; today, we'll show the top 20 qualifiers.

More about Morningstar

Morningstar Inc. provides independent investment research in North America, Europe, Australia and Asia. Its investment research tool, Morningstar CPMS, provides quantitative North American equity research and portfolio analysis to institutional clients and financial advisers. CPMS data cover more than 95 per cent of the investable North American stock market.

What did we find?

Story continues below advertisement

The CPMS Price Momentum strategy has produced a dazzling 30.9 per cent return so far this year, outpacing all the other CPMS models. By comparison, the S&P 500 Total Return index has generated a return of only 14.9 per cent this year.

The strategy's long-term record is nothing to sneer at either. Since inception on Dec. 31, 1993, its annualized return has been 16.1 per cent versus 8.1 per cent for the index.

Remember, though, that there's no guarantee that this stellar performance will continue.

Do your own research before buying any of the stocks listed here.

Report an error Editorial code of conduct
Tickers mentioned in this story
Unchecking box will stop auto data updates
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

Read our community guidelines here

Discussion loading ...

Cannabis pro newsletter
To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies