BofA's momentum indicator lists top-ranked stocks globally

Investing.com -- Bank of America (BofA) on Thursday highlighted global stocks that rank highest across earnings, price, and news momentum, based on its Triple Momentum Allocator.

According to the report, stocks with strong triple momentum outperformed weaker peers by 1.3% in June, extending a six-month outperformance gap to nearly 6%.

Among large-cap, high-liquidity stocks, top-ranked names in the U.S. include Howmet Aerospace Inc (NYSE: HWM) and Philip Morris (NYSE: PM).

In Europe, Poalim and Engie SA (EPA: ENGIE) stood out, while in Japan, Disco (OTC: DSCSY) Corp (TYO:6146) and Mizuho Financial Group Inc (TYO:8411) were flagged.

The Asia Pacific region, excluding Japan, saw Hyundai Heavy Industries (KS:009540) and HDFC Life Insurance (NSE:LIFI) lead the rankings.

“Triple Momentum is most positive for Hyundai Heavy Industries, Hansoh Pharma and BeOne Medicines,” the report stated, while among the most negatively ranked are Porsche, Target, and D.R. Horton.

Notably, Broadcom (NASDAQ: AVGO), Netflix (NASDAQ: NFLX), and Mitsubishi UFJ (NYSE: MUFG) were also cited as globally important names based on their momentum scores.

On a sector basis, the strongest momentum globally is currently observed in Telecom (BCBA:TECO2m), Media, and Insurance.

By contrast, Energy, Semiconductors, and Materials lag behind.

Regionally, Korea, Hong Kong, and China are seeing the highest average momentum ranks in Asia, led by China Health Care, China Insurance, and Korea Banks.

The methodology combines earnings revisions, price performance over the past year, and sentiment analysis from over five billion global news events. Backtesting indicates that the top quintile of stocks by Triple Momentum outperformed the bottom quintile by 9.7% since 2004.

BofA defines Triple Momentum as a combination of three signals: Earnings Momentum, based on the three-month change in consensus EPS estimates; Price Momentum, measured by the slope of a year-long price trend; and News Momentum, which reflects sentiment shifts from global news flow over the past 90 days.

You May Also Be Interested In

• Heartflow (HTFL) Files for Proposed IPO
• Johnson Controls (JCI) secures $377.9M contract for automation systems
• Halcones Precious Metals (HPM) announces results from AGM