Evercore ISI's Julian Emanuel says it's time to buy "sector neutral" stocks with earnings momentum but lagging price momentum.
Names with earnings momentum Emanuel told CNBC on Tuesday that there's a group of stocks whose earnings momentum is "superior to peers."
"We recommend remaining fully invested, shifting focus to a sector neutral quant screen of stocks whose EPS momentum is better than peers yet whose price momentum lags since the March inflection to Maximum Momentum," he wrote in a July 23 note.
"Such 'Earnings Mo' to Price Mo'" stocks could be expected to outperform as price momentum leaders 'cool off,'" he wrote.
But he said that the long-term story is "exceptionally robust," thanks to an expected "productivity boost" from China.
Persons:
Evercore, Julian Emanuel, Emanuel, Price Mo, CNBC's
Organizations:
CNBC, Deere & Co Energy, Cheniere Energy, Alnylam Pharmaceuticals Communication, Pinterest, Eversource
Locations:
China