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How to Buy the Best Momentum Stocks Now

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Key Takeaways

  • MOD's ability to expand alongside the AI data center boom is fueling huge earnings growth.
  • The stock jumped 750% in the last three years, and its technicals are flashing a buy signal.

The stock market has rallied off its April lows, hitting multiple all-time highs in the process. Investors are often nervous about buying stocks or ETFs at new highs based on the idea that they already missed their chance.

But if you never buy stocks or ETFs at or near new highs, you might never buy anything, especially in strong bull markets.

Stock market history dating back to 1970 shows that strength leads to more strength. The average 12-month price return for the S&P 500 after reaching an all-time high was 9.1%, while the average price return from investing all other days was 8.7%, according to JPMorgan data.

That said, not all stocks have participated in the rally, with roughly 200 S&P 500 stocks in the red in 2025.

As the stock market hits new highs, investors should buy stocks that are also hitting new peaks. The stocks the screen puts on your radar have also experienced strong upward earnings revisions activity, earning them a Zacks Rank #1 (Strong Buy).

Momentum Stock Screen Basics

The screen we are looking into today comes loaded with the Research Wizard. The screen helps investors dig through all of the Zacks Rank #1 (Strong Buy) stocks, of which there are over 200 at any given time, to find some of the top momentum names.

The screen narrows down the list of Zacks Rank #1 (Strong Buy) stocksto those with upward price momentum that are also trading within 20% of their 52-week highs. The screen then uses the PEG ratio and the Price to Sales ratio to help make sure investors are getting value as well. The screen then makes your life a little easier and narrows it down to just seven stock picks.

The screen basics are listed below…

·       Zacks Rank = #1 (Strong Buy)

·       Current Price/52-week High >= 0.8

·       PEG Ratio: P/E F(1)/EPS Growth <= 1

·       Price/Sales <= 3

·       Percentage Change Price -12 Weeks = Top # 7

This strategy comes loaded with the Research Wizard and it is called bt_sow_momentum_method1 It can be found in the SoW (Screen of the Week) folder.

The screen is pretty simple, yet powerful. Here is one of the seven stocks that made it through this week's screen…

Buy Soaring AI Data Center Stock MOD for Long-Term Growth 

Modine (MOD - Free Report)  is a thermal management technology and solutions standout, benefiting from various long-term trends, including AI. MOD designs and makes systems to help heat, cool, and ventilate everything from engines to data centers. Its ability to expand alongside the AI data center boom has fueled impressive earnings growth and a huge charge for MOD stock over the past several years.

Modine’s portfolio includes heat exchangers, cooling units, thermal management systems, and beyond, helping improve efficiency and performance by controlling temperatures in all kinds of machines. MOD averaged 9.4% revenue growth in the past four years and 50% adjusted EPS expansion in the trailing three.

Zacks Investment Research
Image Source: Zacks Investment Research

The thermal management giant posted a huge beat-and-raise Q1 of fiscal 2026 at the end of July. MOD is projected to grow its sales by over 11% in FY26 and 14% next year to reach $3.28 billion, boosted by “continued momentum and higher sales of data center products, along with organic and inorganic growth in the HVAC Technologies product group.”

Its FY27 earnings estimate has jumped 8% since its July 30 release, with Modine projected to grow its earnings by 14% this year and 31% next year. Plus, its upbeat EPS revisions earn it a Zacks Rank #1 (Strong Buy) and reverse its recent downward trend.  

Zacks Investment Research
Image Source: Zacks Investment Research

MOD surged after its release back up to its all-time highs from late 2024 and early 2025.

The stock has gained a whopping 750% in the past three years. Its recent charge has Modine neck-and-neck with the S&P 500 over the past 25 years, and it’s crushed its industry.

Despite sitting right below its all-time highs, Modine trades 11% below its average Zacks price target, and it completed the bullish golden cross (50-day MA moving above the 200-day) earlier this month.

Long-term investors should consider buying the thermal management stock that Wall Street loves (all seven of the brokerage recommendations Zacks has for Modine are “Strong Buys”).

Get the rest of the stocks on this list and start looking for the newest companies that fit these criteria. It's easy to do. And it could help you find your next big winner. Start screening for these companies today with a free trial to the Research Wizard. You can do it.

Click here to sign up for a free trial to the Research Wizard today.

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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.

Disclosure: Performance information for Zacks’ portfolios and strategies are available at: www.zacks.com/performance_disclosure


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