INTU & RACE Are 2 of the Best Momentum Stocks to Buy Now

According to Zacks Investment Research, Intuit (INTU) and Ferrari (RACE) are identified as top momentum stocks based on a Driehaus strategy screen, which prioritizes stocks with rising prices, strong earnings growth, and positive momentum indicators. The screen incorporates a Zacks Rank #1 (Strong Buy) and a Momentum Score of A or B, alongside criteria such as positive 50-day moving average changes and strong EPS surprise history; Intuit has an average four-quarter earnings surprise of 12.2% and Ferrari has 10.8%.

Analysis

The analysis from Zacks Investment Research identifies Intuit (INTU) and Ferrari (RACE) as prime momentum stocks by applying a quantitative screen based on the Driehaus strategy, which favors companies with strong price appreciation and robust earnings growth. This screen filters for stocks with a Zacks Rank #1 (Strong Buy), a Momentum Score of A or B, and positive technical indicators such as trading above the 50-day moving average. Critically, the strategy is underpinned by strong fundamentals, requiring a five-year average EPS growth rate above 2% and a history of significant earnings beats. Both selected companies meet these criteria, with Intuit posting an average four-quarter earnings surprise of 12.2% and Ferrari delivering a 10.8% surprise. The combination of verified price momentum (Momentum Scores of B for INTU and A for RACE) with a consistent ability to exceed earnings expectations forms the core of the bullish thesis. The overall sentiment is strongly positive, though the low market impact score suggests this is a stock-picking framework rather than a market-moving catalyst.

Key Decisions for Investors

• Investors employing momentum-based strategies should consider Intuit and Ferrari, as they screen positively on key technical and fundamental metrics, including a Zacks Rank #1, strong price momentum, and average earnings surprises exceeding 10%.
• Given the strategy's reliance on price trends, it is critical to monitor the 50-day moving average and relative strength for both INTU and RACE, as a sustained break below these levels could signal a reversal and undermine the 'buy high, sell higher' thesis.
• While the quantitative screen is compelling, this analysis originates from a single research firm's model, necessitating independent due diligence on each company's specific valuation, industry outlook, and potential risks before initiating or adding to a position.