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Momentum stocks are stocks that are trending upward at a much more rapid pace than the market. Unlike the rest of the market, speculative momentum stocks are driven by hopes about the future, innovation, psychology, animal spirits, market momentum, and strong industry groups. While many legacy investors shy away from these stocks, retail traders with a short-to-intermediate time frame and the benefit of flexibility can profit from these stocks through chart reading and risk management. Today, we will discuss three momentum stocks in hot industry groups that are breaking out.
Rigetti: A Quantum Computing Leader
While quantum computing has yet to generate substantial profits, many forward-looking investors are eager to get in on the ground floor. Zacks Rank #3 (Hold) stock Rigetti Computing ((RGTI - Free Report) ) is “on a mission to build the world’s most powerful quantum computers to help solve some of the most important and pressing problems in the world.” While the company has just over $1 million in revenue, that number is expected to explode to $37.65 million next year (according to Zacks Consensus Estimates).
Image Source: Zacks Investment Research
Meanwhile, RGTI has recently landed several government contracts, including one with the Defense Advanced Research Projects Agency (DARPA). RGTI is currently breaking out of a long base structure after correcting to the 200-day moving average.
Image Source: TradingView
Finally, Rigetti is a member of the QC industry group, which includes strong performers like Quantum Computing ((QUBT - Free Report) ) and D-Wave Quantum ((QBTS - Free Report) ).
SoundHoundAI: A Momentum Opportunity in the AI Realm
Unfortunately, most of the AI leaders on Wall Street are slower-moving mega-cap tech stocks like Microsoft ((MSFT - Free Report) ). While these stocks have performed well, they do not offer super-performance. That said, SoundHoundAI ((SOUN - Free Report) ), a global leader in AI voice solutions, is an exception. SOUN, which has a similar pattern as RGTI, enjoys a multi-faceted partnership with AI leader Nvidia ((NVDA - Free Report) ).
Image Source: TradingView
Carvana: A Turnaround Story
In late 2022, e-commerce car company Carvana ((CVNA - Free Report) ) was on the brink of bankruptcy, with its share price in the single digits. However, the company was able to secure financing and turn the fundamental picture 180 degrees.
Image Source: Zacks Investment Research
Since then, the CVNA shares have soared from single digits to over $300 a share today. The stock is again breaking out on its price chart and earns a robust Zacks Rank #2 (Buy) rating.
Bottom Line
Momentum stocks offer nimble traders opportunities for super performance. Quantum computing and AI stocks provide traders the best opportunities in the current market environment.
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Momentum Focus: RGTI, SOUN, CVNA
What is a Momentum Stock?
Momentum stocks are stocks that are trending upward at a much more rapid pace than the market. Unlike the rest of the market, speculative momentum stocks are driven by hopes about the future, innovation, psychology, animal spirits, market momentum, and strong industry groups. While many legacy investors shy away from these stocks, retail traders with a short-to-intermediate time frame and the benefit of flexibility can profit from these stocks through chart reading and risk management. Today, we will discuss three momentum stocks in hot industry groups that are breaking out.
Rigetti: A Quantum Computing Leader
While quantum computing has yet to generate substantial profits, many forward-looking investors are eager to get in on the ground floor. Zacks Rank #3 (Hold) stock Rigetti Computing ((RGTI - Free Report) ) is “on a mission to build the world’s most powerful quantum computers to help solve some of the most important and pressing problems in the world.” While the company has just over $1 million in revenue, that number is expected to explode to $37.65 million next year (according to Zacks Consensus Estimates).
Image Source: Zacks Investment Research
Meanwhile, RGTI has recently landed several government contracts, including one with the Defense Advanced Research Projects Agency (DARPA). RGTI is currently breaking out of a long base structure after correcting to the 200-day moving average.
Image Source: TradingView
Finally, Rigetti is a member of the QC industry group, which includes strong performers like Quantum Computing ((QUBT - Free Report) ) and D-Wave Quantum ((QBTS - Free Report) ).
SoundHoundAI: A Momentum Opportunity in the AI Realm
Unfortunately, most of the AI leaders on Wall Street are slower-moving mega-cap tech stocks like Microsoft ((MSFT - Free Report) ). While these stocks have performed well, they do not offer super-performance. That said, SoundHoundAI ((SOUN - Free Report) ), a global leader in AI voice solutions, is an exception. SOUN, which has a similar pattern as RGTI, enjoys a multi-faceted partnership with AI leader Nvidia ((NVDA - Free Report) ).
Image Source: TradingView
Carvana: A Turnaround Story
In late 2022, e-commerce car company Carvana ((CVNA - Free Report) ) was on the brink of bankruptcy, with its share price in the single digits. However, the company was able to secure financing and turn the fundamental picture 180 degrees.
Image Source: Zacks Investment Research
Since then, the CVNA shares have soared from single digits to over $300 a share today. The stock is again breaking out on its price chart and earns a robust Zacks Rank #2 (Buy) rating.
Bottom Line
Momentum stocks offer nimble traders opportunities for super performance. Quantum computing and AI stocks provide traders the best opportunities in the current market environment.