Analytics platform Trendrating has identified a list of 20 European stocks it expects to have strong positive momentum over the medium to long term.
Among those featured are emerging market asset manager Ashmore Group, as well as a number of oil and gas stocks such as Statoil, Royal Dutch Shell and Total.
The firm's philosophy is that "forecasting trends is nearly impossible but following trends is possible and lucrative", which has led it to create the SmartMomentum trading model to identify stocks it believes will continue to outperform.
Its model detects patterns through numeric analysis of historical prices, volumes and volatility. The company adjusts its model components monthly in order to identify more opportunities.
Trendrating calculates the strength and magnitude of momentum for each stock, rating them based on four grades, with 'A' being a strong bull trend and 'D' being a strong bear trend. The rating system has been developed with the goal of capturing trends lasting from a few months to a few quarters.
The table below shows the results of the screening, 20 European stocks, all with at least $2bn in market capitalisation, that have strong positive momentum and relatively young trends. These stocks are likely to continue their positive trend in the medium to long term, according to Trendrating.
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