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The sudden stock market crash on the day following the 58th quadrennial presidential election seems like a distant memory. Since the startling victory, the “Trump Rally” has been nothing less than spectacular. President Trump’s tweet on the raging bull market is sure to reinstate hope among momentum investors.
Trump’s tweet read “Stock market hits new high with longest winning streak in decades. Great level of confidence and optimism - even before tax plan rollout.” Post the surprising election results, major indices including the Dow Jones Industrial Average (DJI), S&P 500 (GSPC) and NASDAQ Composite (IXIC) had rallied 9.8%, 9.0% and 13.2%, respectively.
Most of this euphoria stemmed from the new administration’s pledge to relax regulatory measures and cut taxes. What has been more reassuring is the stock market’s rally. Rebound in retail sales, approval of new housing permits, high consumer confidence, increased manufacturing activity and the desired level of inflation look quite compelling as well.
Trends Raise Hope
Market pundits are of the opinion that the amazing labor market performance has much to do with the overall positive sentiment. A plethora of market reports suggest that economic growth, both in and out of home, is likely to remain strong.
According to Market Watch, purchasing managers’ index (PMI) stood at 52.7 in Dec 2016, crossing the expansionary threshold value of 52. After a string of quarters of lackluster performance, Europe and China are showing signs of recovery. Back at home, the robust labor market is expected to stoke wage hikes.
Also, Fed’s interest rate hike, the second time in three months, shows that fears of deflation have finally abated. This apart, the energy market, which had almost single handedly dragged the financial performance of all major indicators, are looking up with the stabilization of oil prices.
In such times, one of the most successful strategies today is to get in on momentum stocks at the right time. Momentum is basically a tendency of stocks, which have outperformed the market in the recent past, to continue to do so. It is based on the idea that once a trend is established, it is unlikely to go against the drift.
However, in such arguably overvalued markets, investors should be downright fussy about where they are putting their money. To ensure that they don’t find themselves chasing fads blindly, we have used our style score system and proven Zacks Rank methodology.
Zacks Recommendation
Our “VGM” Score identifies stocks that have the most attractive value, growth and momentum characteristics, and a good VGM score indicates stronger chances of success. Our research shows that stocks with Style Scores of ‘A’ or ‘B’, when combined with a Zacks Rank #1 (Strong Buy) or 2 (Buy), offer the best upside potential.
Further, we have refined the search by adding the Zacks Momentum Style Score, which indicates the best timing to pick a stock and advantage from its momentum. In addition, we have considered stocks that have gained 5% over the past four weeks and still appear to have plenty of upside left.
Flaunting a Zacks Rank #1 and a Momentum Style Score of ‘A,’ the following stocks are marching ahead in full steam, and still appear to have plenty of upside left. You can see the complete list of today’s Zacks #1 Rank stocks here.
Five Hot Momentum Stocks
Idaho-based Micron Technology, Inc. (MU - Free Report) is a provider of advanced semiconductor solutions. Through its worldwide operations, this company manufactures and markets Dynamic Random Access Memory, NAND flash memory, CMOS image sensors, other semiconductor components and memory modules used in leading-edge computing, consumer, networking and mobile products.
Momentum Score: A VGM Score: A Stock Price Return: 11.4%
Headquartered in Seoul, South Korea, SK Telecom Co., Ltd. (SKM - Free Report) provides wireless telecommunications services. It offers wireless voice transmission services; cellular global roaming services; and interconnection services. This company also offers wireless data communication and business communications services.
Momentum Score: A VGM Score: A Stock Price Return: 12.7%
Headquartered in Vancouver, WA, Papa Murphy's Holdings, Inc. (FRSH - Free Report) operates as a franchisor and operator of the Take 'N' Bake pizza chain in the U.S. In addition to scratch-made pizzas, this company offers a growing menu of grab 'n' go items, including salads, sides and desserts.
Momentum Score: A VGM Score: B Stock Price Return: 21.2%
Ladenburg Thalmann Financial Services Inc. is a diversified financial services company, offering brokerage, advisory, investment banking, research, institutional sales, trading, asset management and trust services in the U.S. This company is based in Miami, FL.
Momentum Score: A VGM Score: B Stock Price Return: 16.3%
ZAGG Inc. designs, manufactures, and distributes mobile tech accessories for smartphones and tablets. This company’s flagship brand, the invisibleSHIELD, is a protective, high-tech patented film covering, designed for iPods, laptops, cell phones, digital cameras, PDAs, watch faces, GPS systems, gaming devices and other items.
Momentum Score: A VGM Score: A Stock Price Return: 16.4%
Why Wait Longer?
We believe investors adopting the relatively new investing principle – “Buy High and Sell Higher” – have managed to rake in handsome gains. The pro-growth policies of the new administration coupled with the prolonged bull run of the markets imply that it is time to finally let go of inhibitions. To make most of the tumultuous times, join the ranks of investors who have fine-tuned their strategies. Don’t wait on the sidelines for too long and miss out on all the fun.
Now See Our Private Investment Ideas
While the above ideas are being shared with the public, other trades are hidden from everyone but selected members. Would you like to peek behind the curtain and view them? Starting today, for the next month, you can follow all Zacks' private buys and sells in real time from value to momentum . . . from stocks under $10 to ETF and option moves . . . from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors. Click here for Zacks' secret trades >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
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5 Momentum Stocks to Buy Moving into Q2
The sudden stock market crash on the day following the 58th quadrennial presidential election seems like a distant memory. Since the startling victory, the “Trump Rally” has been nothing less than spectacular. President Trump’s tweet on the raging bull market is sure to reinstate hope among momentum investors.
Trump’s tweet read “Stock market hits new high with longest winning streak in decades. Great level of confidence and optimism - even before tax plan rollout.” Post the surprising election results, major indices including the Dow Jones Industrial Average (DJI), S&P 500 (GSPC) and NASDAQ Composite (IXIC) had rallied 9.8%, 9.0% and 13.2%, respectively.
Most of this euphoria stemmed from the new administration’s pledge to relax regulatory measures and cut taxes. What has been more reassuring is the stock market’s rally. Rebound in retail sales, approval of new housing permits, high consumer confidence, increased manufacturing activity and the desired level of inflation look quite compelling as well.
Trends Raise Hope
Market pundits are of the opinion that the amazing labor market performance has much to do with the overall positive sentiment. A plethora of market reports suggest that economic growth, both in and out of home, is likely to remain strong.
According to Market Watch, purchasing managers’ index (PMI) stood at 52.7 in Dec 2016, crossing the expansionary threshold value of 52. After a string of quarters of lackluster performance, Europe and China are showing signs of recovery. Back at home, the robust labor market is expected to stoke wage hikes.
Also, Fed’s interest rate hike, the second time in three months, shows that fears of deflation have finally abated. This apart, the energy market, which had almost single handedly dragged the financial performance of all major indicators, are looking up with the stabilization of oil prices.
In such times, one of the most successful strategies today is to get in on momentum stocks at the right time. Momentum is basically a tendency of stocks, which have outperformed the market in the recent past, to continue to do so. It is based on the idea that once a trend is established, it is unlikely to go against the drift.
However, in such arguably overvalued markets, investors should be downright fussy about where they are putting their money. To ensure that they don’t find themselves chasing fads blindly, we have used our style score system and proven Zacks Rank methodology.
Zacks Recommendation
Our “VGM” Score identifies stocks that have the most attractive value, growth and momentum characteristics, and a good VGM score indicates stronger chances of success. Our research shows that stocks with Style Scores of ‘A’ or ‘B’, when combined with a Zacks Rank #1 (Strong Buy) or 2 (Buy), offer the best upside potential.
Further, we have refined the search by adding the Zacks Momentum Style Score, which indicates the best timing to pick a stock and advantage from its momentum. In addition, we have considered stocks that have gained 5% over the past four weeks and still appear to have plenty of upside left.
Flaunting a Zacks Rank #1 and a Momentum Style Score of ‘A,’ the following stocks are marching ahead in full steam, and still appear to have plenty of upside left. You can see the complete list of today’s Zacks #1 Rank stocks here.
Five Hot Momentum Stocks
Idaho-based Micron Technology, Inc. (MU - Free Report) is a provider of advanced semiconductor solutions. Through its worldwide operations, this company manufactures and markets Dynamic Random Access Memory, NAND flash memory, CMOS image sensors, other semiconductor components and memory modules used in leading-edge computing, consumer, networking and mobile products.
Momentum Score: A
VGM Score: A
Stock Price Return: 11.4%
Headquartered in Seoul, South Korea, SK Telecom Co., Ltd. (SKM - Free Report) provides wireless telecommunications services. It offers wireless voice transmission services; cellular global roaming services; and interconnection services. This company also offers wireless data communication and business communications services.
Momentum Score: A
VGM Score: A
Stock Price Return: 12.7%
Headquartered in Vancouver, WA, Papa Murphy's Holdings, Inc. (FRSH - Free Report) operates as a franchisor and operator of the Take 'N' Bake pizza chain in the U.S. In addition to scratch-made pizzas, this company offers a growing menu of grab 'n' go items, including salads, sides and desserts.
Momentum Score: A
VGM Score: B
Stock Price Return: 21.2%
Ladenburg Thalmann Financial Services Inc. is a diversified financial services company, offering brokerage, advisory, investment banking, research, institutional sales, trading, asset management and trust services in the U.S. This company is based in Miami, FL.
Momentum Score: A
VGM Score: B
Stock Price Return: 16.3%
ZAGG Inc. designs, manufactures, and distributes mobile tech accessories for smartphones and tablets. This company’s flagship brand, the invisibleSHIELD, is a protective, high-tech patented film covering, designed for iPods, laptops, cell phones, digital cameras, PDAs, watch faces, GPS systems, gaming devices and other items.
Momentum Score: A
VGM Score: A
Stock Price Return: 16.4%
Why Wait Longer?
We believe investors adopting the relatively new investing principle – “Buy High and Sell Higher” – have managed to rake in handsome gains. The pro-growth policies of the new administration coupled with the prolonged bull run of the markets imply that it is time to finally let go of inhibitions. To make most of the tumultuous times, join the ranks of investors who have fine-tuned their strategies. Don’t wait on the sidelines for too long and miss out on all the fun.
Now See Our Private Investment Ideas
While the above ideas are being shared with the public, other trades are hidden from everyone but selected members. Would you like to peek behind the curtain and view them? Starting today, for the next month, you can follow all Zacks' private buys and sells in real time from value to momentum . . . from stocks under $10 to ETF and option moves . . . from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors. Click here for Zacks' secret trades >>