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These 3 Attractive Stocks Keep Cruising Higher

Key Takeaways

  • Several stocks are ignoring the market's woes, showing relative strength.
  • Many dividend-paying stocks can bring big benefits during prolonged market volatility.

The market has thrown a tantrum over recent weeks, with tariff talks and other potential economic implications shaking sentiment.

But despite the negativity, several stocks, including Verizon Communications (VZ - Free Report) , Gilead Sciences (GILD - Free Report) , and Alibaba (BABA - Free Report) , have shaken off the woes, showing stability and relative strength throughout the period.

Zacks Investment Research
Image Source: Zacks Investment Research

For those interested in momentum, let’s take a closer look at each.

Gilead Product Demand Booms

Gilead Sciences’ latest set of quarterly results came in nicely above expectations, with the company exceeding both Zacks Consensus EPS and Sales estimates by 14% and 7%, respectively. Solid growth was also delivered, with earnings up 11% alongside a 6% sales bump.

Importantly, the company’s offerings continue to generate strong demand, with total product sales of $7.5 billion exceeding our consensus expectations on the metric in seven consecutive periods.

As shown below, the beats have regularly been outsized as of late, undoubtedly a positive trajectory.

Zacks Investment Research
Image Source: Zacks Investment Research

In addition, sizable margin expansion has unlocked higher profitability for the company in a big way, with its products gross margin shooting higher to 79% from 70.9% throughout its latest period. Please note that the chart below tracks values on a trailing twelve-month basis.

Zacks Investment Research
Image Source: Zacks Investment Research

Analysts positively revised their current year EPS expectations following the release, a bullish sign that alludes to further positive price action.

Zacks Investment Research
Image Source: Zacks Investment Research

Verizon Keeps Generating Cash

Verizon’s strong cash-generating abilities have positioned it at the top of many income-focused investors’ lists, with the company close to joining the elite Dividend Aristocrats club thanks to years of consistently higher payouts.

Below is a chart illustrating the company’s dividends/share on a quarterly basis. FY24 free cash flow of $19.8 billion grew 6% year-over-year.

Zacks Investment Research
Image Source: Zacks Investment Research

Valuation multiples are considerably cheap relative to the S&P 500, with the current 9.9X forward 12-month earnings multiple reflecting a 52% discount. The stock is more of an income-driven play, not targeted for high-growth expectations.

Zacks Investment Research
Image Source: Zacks Investment Research

Its latest set of quarterly results came in above expectations, exceeding both Zacks Consensus EPS and Sales estimates modestly. Continued customer growth has been a nice tailwind for the company, with its broadband market share continuing to grow.

Alibaba Shares Bounce Back Big

Alibaba shares have been notably strong since late January following news of its new AI model that claims to surpass DeepSeek. The company’s EPS outlook remains bullish across the board, a big positive concerning near-term share movement.

Zacks Investment Research
Image Source: Zacks Investment Research

Importantly, its AI-related product revenue maintained a triple-digit year-over-year growth pace for the sixth consecutive quarter throughout its latest period. BABA’s sales growth has overall shown a modest acceleration over recent periods, as shown below.

Zacks Investment Research
Image Source: Zacks Investment Research

The stock’s recent momentum has undoubtedly been welcomed among shareholders following years of negative price action, up nearly 75% in 2025 alone.

Bottom Line  

Despite the market’s sour mood over recent weeks, all three stocks above – Verizon Communications (VZ - Free Report) , Gilead Sciences (GILD - Free Report) , and Alibaba (BABA - Free Report) – have shaken off the negativity, showing relative strength against the S&P 500.

For those interested in momentum, all three deserve a closer look.


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Verizon Communications Inc. (VZ) - free report >>

Gilead Sciences, Inc. (GILD) - free report >>

Alibaba Group Holding Limited (BABA) - free report >>

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