The team at Ned Davis Research (www.ndr.com) relies on four factors:
Quantitative Equity Strategist Brian Sanborn and his team re-balance the portfolio of forty U.S. stocks each month. Today's list reflects the new picks for November. While we cannot share the entire list (it's proprietary to paying clients), we can show the ten companies from the portfolio with the highest short and long term momentum.
Momentum is a key theme currently, and well-known to blog readers. In the past two weeks we've addressed:
- How Long the Rally Can Continue (10/28)
- The Global Money Train, courtesy of world central bankers (10/24)
- Health Care's Outperformance (10/17)
We believe the data indicates the path of least resistance is still higher, and today's research from the Ned Davis team further proves the point. Consider this: the list of ten names has rallied 68.6 percent this year, and yet still trades at just 12.7 times 2014 earnings estimates.
So the group trades 17 percent cheaper than the market and is outperforming nearly three-fold. For skeptics still clinging to cash and now fretting they've missed the rally, we join the Ned Davis team in saying 'think again.'