Do you prefer investing in stocks with strong trading momentum?
We screened the semiconductors industry for those rallying above their 20-day, 50-day, and 200-day moving averages.
We then screened for stocks with strong sales trends by comparing growth in revenue to growth in inventory over the last year. We screened for stocks with positive sales trends, with faster growth in revenue than inventory over the last year. Since inventory represents the portion of goods not yet sold, faster growth in revenue than inventory is considered an encouraging sign.
To screen for strengthening liquidity, we also only focused on those companies with inventory decreasing as a percent of current assets.
For an interactive version of this chart, click on the image below. Analyst ratings sourced from Zacks Investment Research. Read More