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Chicago, IL – January 19, 2026 – Stocks in this week’s article are Nu Holdings Ltd. NU, Amazon.com, Inc. AMZN and Microsoft Corp. MSFT.
1 FinTech Disruptor & 2 Mag 7 Stocks to Buy as Momentum Surges
This year, savvy investors seeking outsized returns should focus on Wall Street’s strongest momentum leaders. To uncover stocks with additional upside, they can apply Richard Driehaus’s well-known “buy high and sell higher” philosophy, which has helped earn him a place on Barron’s All-Century Team.
By applying the Driehaus strategy, one fintech disruptor, Nu Holdings Ltd., along with two Magnificent 7 stocks, Amazon.com, Inc. and Microsoft Corp., have emerged as strong momentum plays and attractive buying opportunities (read more: These 2 Stocks Are Up 100%+ in 2025-and the Momentum Isn't Over).
Exploring the Driehaus Investment Strategy in Detail
Regarding the strategy, Driehaus once said, “I would much rather invest in a stock that’s increasing in price and take the risk that it may begin to decline than invest in a stock that’s already in decline and try to guess when it will turn around.” In line with this insight, the American Association of Individual Investors (“AAII”) considered the 50-day moving average as one of the key criteria before creating a portfolio following Driehaus’ philosophy.
It is calculated by dividing the numerator (month-end price minus 50-day moving average of month-end price) by the 50-day moving average of the month-end price. Another momentum indicator — positive relative strength — has also been included in this strategy. A positive 50-day moving average indicates that the stock is trading at a price higher than its 50-day moving average level, indicating an uptrend.
Moreover, AAII found that Driehaus primarily focuses on strong earnings growth rates and impressive earnings projections to pick potential outperformers. Companies with a strong history of beating estimates are also given importance in this strategy, which was made to provide better returns over the long term.
Here are three of the 41 stocks:
Nu Holdings
Nu Holdings offers a digital banking platform across Latin America, the Cayman Islands and the U.S. Nu Holdings has a Zacks Rank #2 and a Momentum Score of B. The trailing four-quarter earnings surprise for NU is 5.3%, on average.
Amazon
Amazon sells consumer products, and offers advertising and subscription services online and in stores globally. Amazon has a Zacks Rank #2 and a Momentum Score of B. The trailing four-quarter earnings surprise for AMZN is 22.5%, on average.
Microsoft
Microsoft creates and supports software, services, devices and solutions around the world. Microsoft has a Zacks Rank #2 and a Momentum Score of B. The trailing four-quarter earnings surprise for MSFT is 8.5%, on average.
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For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2819134/1-fintech-disruptor-2-mag-7-stocks-to-buy-as-momentum-surges
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
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