Driehaus Screen for Growth and Momentum Stocks
Momentum investors seek rapidly growing companies with prices to match.
Their hope is that continued growth will attract additional investors who will continue to drive up the stock price.
In this article
- The AAII Driehaus Screen
- Screen Performance
- Profile of Passing Companies
- Current Companies
- What It Takes: Driehaus Criteria
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That investment philosophy, centered on earnings growth, underlies the approach used by Richard Driehaus, who was named to the Barron’s All-Century Team of All-Stars in 2000. He and his Chicago-based firm, Driehaus Capital Management, look for companies with strong and accelerating earnings growth. Their belief is that earnings growth is the primary driver of stock prices, as sustained earnings growth allows a company to increase cash flows and dividends. In his book, “Investment Gurus” (Prentice Hall, 1999), Peter J. Tanous outlines Driehaus’ momentum strategy.
The AAII Driehaus Screen
Based on Tanous’ book, AAII developed a Driehaus screen, which we have built into our Stock Investor Pro fundamental stock screening and research database program and track at AAII.com. The AAII Driehaus screen isolates small and mid-cap companies with:
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