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Zacks.com featured highlights: Red Robin Gourmet Burgers, Best Buy, Citizens Financial Group, Children's Place and Lam Research

For Immediate Release

Chicago, IL – June 06, 2017 - Stocks in this week’s article include Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB Free Report ), Best Buy Co., Inc. (NYSE: BBY Free Report ), Citizens Financial Group, Inc. (NYSE: CFG Free Report ), Children's Place, Inc. (NASDAQ: PLCE Free Report ) and Lam Research Corporation (NASDAQ: LRCX Free Report ).

Screen of the Week of Zacks Investment Research:

Pick These 5 Momentum Stocks Using Driehaus Strategy

Richard Driehaus, the pioneer of momentum investing, developed a "buy high and sell higher" strategy. Risky investors, who wish to rake in strong returns, may think of investing in momentum stocks using the Driehaus strategy. The success of this strategy, earned Driehaus a place in Barron’s All-Century Team.

The American Association of Individual Investors (AAII) proved that the strategy has the potential to offer high returns. AAII’s portfolio, which was developed following the strategy, returned 13.5% and 18.1% in thefive- and 10- year timeframe, respectively, compared with -1.1% and 4.2% returns registered by the S&P 500. Thus, investors with a high risk appetite might give = the Driehaus strategy a thought to boost returns.

A Brief Note on 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 a decline and try to guess when it will turn around.” In line with his insight, AAII took into account the percentage 50-day moving average as one of the key criteria before designing a portfolio.

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. 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 focused 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

In order to make the strategy more profitable, we have considered 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’ when combined with a Zacks Rank #1 or 2 offer the best upside potential.

• Zacks Rank equal to #1

(Only Strong Buy-rated stocks can get through. You can see the complete list of today’s Zacks #1 Rank stocks here .)

Last 5-year average EPS growth rates above 2%

(Strong EPS growth history ensures improving business.)

Trailing 12 month EPS growth higher than 0 and industry median

(Higher EPS growth compared to the industry average indicates superior stocks.)

Last four-quarter average EPS surprise greater than 5%

(Positive EPS surprise indicates potential.)

Positive % 50-day moving average and relative strength over 4 weeks

(High % 50-day moving average and relative strength signal uptrend.)

Momentum Score equal to or less than B

(Favorable momentum score indicates that it is ideal to take advantage of the momentum with the highest probability of success.)

These few parameters narrowed down the universe of over 7,882 stocks to only 12.

Here are five of the 12 stocks that passed the screen:

Red Robin Gourmet Burgers, Inc. (NASDAQ:RRGB Free Report ) is a developer and franchiser of casual-dining and fast-casual restaurants. The company has a Momentum Score of ‘A’ and an average four-quarter positive earnings surprise of 17.3%.

Best Buy Co., Inc. (NYSE:BBY Free Report ) is a retailer of technology products, services and solutions. The company has a Momentum Score of ‘A’ and an average four-quarter positive earnings surprise of 33.8%.

Citizens Financial Group, Inc. (NYSE:CFG Free Report ) is a bank holding company for Citizens Bank. The company has a Momentum Score of ‘B’ and an average four-quarter positive earnings surprise of 9.1%.

Children's Place, Inc. (NASDAQ:PLCE Free Report ) is a children's specialty apparel retailer. The company has a Momentum Score of ‘B’ and an average four-quarter positive earnings surprise of 36.6%.

Lam Research Corporation (NASDAQ:LRCX Free Report ) is a designer and marketer of semiconductor processing systems. The company has a Momentum Score of ‘B’ and an average four-quarter positive earnings surprise of 6.1%.

Get the rest of the stocks on the list and start putting this and other ideas to the test. It can all be done with the Research Wizard stock picking and backtesting software.

The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.

Click here to sign up for a free trial to the Research Wizard today .

Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.

Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance .

Zacks Restaurant Recommendations: In addition to dining at these special places, you can feast on their stock shares. A Zacks Special Report spotlights 5 recent IPOs to watch plus 2 stocks that offer immediate promise in a booming sector. Download it free »

Sign up now for your free trial today and start picking better stocks immediately. And with the backtesting feature, you can test your ideas to see how you can improve your trading in both up markets and down markets. Don’t wait for the market to get better before you decide to do better. Start learning how to be a better trader today: https://at.zacks.com/?id=111

Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.

About Screen of the Week

Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use. Each week, Zacks Profit from the Pros free email newsletter shares a new screening strategy. Learn more about it here https://at.zacks.com/?id=112

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Red Robin Gourmet Burgers, Inc. (RRGB): Free Stock Analysis Report
 
Best Buy Co., Inc. (BBY): Free Stock Analysis Report
 
Citizens Financial Group, Inc. (CFG): Free Stock Analysis Report
 
Children's Place, Inc. (The) (PLCE): Free Stock Analysis Report
 
Lam Research Corporation (LRCX): Free Stock Analysis Report
 
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