Bank of America’s ‘triple momentum’ screeners finds stocks including Nvidia, J.P.Morgan

BofA Securities (BofA) has published top “triple momentum” stocks screens based on earnings, price, and sentiment from the news.

The rankings combine earnings momentum, price momentum, and news momentum and screens for stocks with above-average positive change in all three. The current top triple momentum is strongest for banks, diversified financials, and insurance, and weakest for utilities, telecom, and consumer staples.

BofA’s quant strategy team in a Monday note said earnings momentum quantifies the sentiment of sell-side analysts and monitors changing consensus on earnings estimates on a three-month change in EPS estimates. Price momentum captures sentiment of market participants who buy and sell equities, and news momentum measures sentiment from other market players including journalists, experts, regulators, and corporates, and quantifies momentum in news using articles preceding 90 days.

Looking globally, triple momentum is most positive for Japan’s MS&AD Insurance (OTCPK:MSADY), South Korean semiconductor company SK Hynix and Taiwanese chip supplier MediaTek. It’s most negative for Starbucks (SBUX), Bristol-Myers Squibb (BMY) and French luxury group Kering (OTCPK:PPRUF) (OTCPK:PPRUY).

In the U.S. equity market, triple momentum is most positive for chip giant Nvidia (NVDA), Eli Lilly (LLY) and J.P.Morgan Chase (JPM).

BofA noted global equities (ACWI) pulled back last week despite a ~7% jump in the global semiconductors sector after Nvidia (NVDA) posted stronger-than-expected Q1 earnings.