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Given a series of external forces that kept the U.S. economy in doldrums over the recent past, the market was eagerly waiting for some kind of impetus to push the economy uphill. And it came in the form of a sharp rebound in the U.S. jobs market. The June jobs report last Friday sent most of the indices skyward.
According to a CNBC news, “The U.S. economy added a better-than-expected 287,000 jobs last month, well up from the 11,000 in May, in a sign it had regained speed after a brief lull.”
Bullish Jobs Report Sends Markets Soaring
This had a tonic effect on the stock market with the Dow Jones industrial average rising to a record high at the close of the Jun 12 session. Although NASDAQ is still lagging at this moment, the S&P 500 index that was too fragile to show any strong signs of gain over the past one year, is finally on a new high. At yesterday’s close, this index was trading at 2,152. Notably, apart from its previous day’s close, the S&P 500 index has failed to breach the 2,130 level since mid-May 2015.
Are We Cheering Just a Little Too Early?
It seems like the market has completely put behind it the plunge suffered from the shocking Brexit vote. However, one cannot expect this single factor – the June jobs report – to overpower all other recent commotions the U.S. market has been subject to, including the Fed’s interest rate concerns, low oil prices, sluggish emerging market scenario and upcoming political game changing factors.
Though the Brexit effect seems to be fading away, we are on the cusp of a lackluster second-quarter earnings season with the bottom line expected to decline by 6.2%.
At this point when there is a lack of clarity about the direction of the market and when sustainable development is still a matter of question, the ideal investment strategy is to go for momentum stocks. In other words, when the market sentiment is erratic, it’s best to forget about long-term growth and value investing. Instead, the emphasis should be on short-term gains driven by favorable movement in the stock price and possibilities of a further rise in the days ahead. In a nutshell, don’t hold the stock, get in, make profit and get out is the mantra.
In fact it will be a wiser decision if you pick those momentum stocks which are also strongly preferred by most of its covering analysts.
5 Solid Momentum Picks
We have the Momentum Style Score and a favorable Zacks Rank as our fundamental screening criteria. We note that stocks with a Momentum Style Score of 'A' or 'B,' when combined with a Zacks Rank #1 (Strong Buy) or 2 (Buy), have good prospects. To make this screening more accurate, we have only selected those stocks which were recommended as Strong Buy or Buy by more than 80% of the brokers covering the stocks.
NuVasive, Inc. , headquartered in San Diego, CA, is one of the leading global medical device companies in the global spine market, focused on developing minimally-disruptive surgical products and procedurally-integrated solutions for the spine. The company holds a Zacks Rank #1 which was recommended by more than 85% of the brokers covering the stock. Besides, it has a Momentum Style Score of A. Being a strong momentum stock, the company’s price has appreciated by 13.5% year to date (YTD).
Apogee Enterprises, Inc. (APOG - Free Report) is a developer of glass solutions for enclosing commercial buildings and framing art in the U.S. The stock too carries a Zacks Rank #1, a Momentum Score of A and, most impressively, a clean sheet of Strong Buy ratings from all brokers covering the stock. The company’s stock price has rallied 8.9% YTD.
Burlington Stores, Inc. (BURL - Free Report) is a retailer of branded apparel products in the U.S. The company carries a Zacks Rank #2 and a Momentum Score of A, making it a favorable pick. The company boasts a 55.6% price appreciation YTD.
Newfield Exploration Co. based in Woodlands, TX, is an independent energy company engaged in the exploration and production of crude oil and natural gas. The company holds a Zacks Rank #2 coupled with a Momentum Score of A. The company has seen a 37% price appreciation YTD which makes it an attractive investment option. We are also encouraged by the fact that more than 91% of the brokers covering the stock have recommended a Buy for it.
Saratoga Investment Corp. (SAR - Free Report) is a business development company based in New York. The company carries a Zacks Rank #1, recommended by 100% of the brokers covering the stock, and also a Momentum Score of A, making it a favorable pick. The company boasts an 11.9% price appreciation YTD.
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Buy 5 Momentum Picks That Brokers Love
Given a series of external forces that kept the U.S. economy in doldrums over the recent past, the market was eagerly waiting for some kind of impetus to push the economy uphill. And it came in the form of a sharp rebound in the U.S. jobs market. The June jobs report last Friday sent most of the indices skyward.
According to a CNBC news, “The U.S. economy added a better-than-expected 287,000 jobs last month, well up from the 11,000 in May, in a sign it had regained speed after a brief lull.”
Bullish Jobs Report Sends Markets Soaring
This had a tonic effect on the stock market with the Dow Jones industrial average rising to a record high at the close of the Jun 12 session. Although NASDAQ is still lagging at this moment, the S&P 500 index that was too fragile to show any strong signs of gain over the past one year, is finally on a new high. At yesterday’s close, this index was trading at 2,152. Notably, apart from its previous day’s close, the S&P 500 index has failed to breach the 2,130 level since mid-May 2015.
Are We Cheering Just a Little Too Early?
It seems like the market has completely put behind it the plunge suffered from the shocking Brexit vote. However, one cannot expect this single factor – the June jobs report – to overpower all other recent commotions the U.S. market has been subject to, including the Fed’s interest rate concerns, low oil prices, sluggish emerging market scenario and upcoming political game changing factors.
Though the Brexit effect seems to be fading away, we are on the cusp of a lackluster second-quarter earnings season with the bottom line expected to decline by 6.2%.
At this point when there is a lack of clarity about the direction of the market and when sustainable development is still a matter of question, the ideal investment strategy is to go for momentum stocks. In other words, when the market sentiment is erratic, it’s best to forget about long-term growth and value investing. Instead, the emphasis should be on short-term gains driven by favorable movement in the stock price and possibilities of a further rise in the days ahead. In a nutshell, don’t hold the stock, get in, make profit and get out is the mantra.
In fact it will be a wiser decision if you pick those momentum stocks which are also strongly preferred by most of its covering analysts.
5 Solid Momentum Picks
We have the Momentum Style Score and a favorable Zacks Rank as our fundamental screening criteria. We note that stocks with a Momentum Style Score of 'A' or 'B,' when combined with a Zacks Rank #1 (Strong Buy) or 2 (Buy), have good prospects. To make this screening more accurate, we have only selected those stocks which were recommended as Strong Buy or Buy by more than 80% of the brokers covering the stocks.
NuVasive, Inc. , headquartered in San Diego, CA, is one of the leading global medical device companies in the global spine market, focused on developing minimally-disruptive surgical products and procedurally-integrated solutions for the spine. The company holds a Zacks Rank #1 which was recommended by more than 85% of the brokers covering the stock. Besides, it has a Momentum Style Score of A. Being a strong momentum stock, the company’s price has appreciated by 13.5% year to date (YTD).
Apogee Enterprises, Inc. (APOG - Free Report) is a developer of glass solutions for enclosing commercial buildings and framing art in the U.S. The stock too carries a Zacks Rank #1, a Momentum Score of A and, most impressively, a clean sheet of Strong Buy ratings from all brokers covering the stock. The company’s stock price has rallied 8.9% YTD.
Burlington Stores, Inc. (BURL - Free Report) is a retailer of branded apparel products in the U.S. The company carries a Zacks Rank #2 and a Momentum Score of A, making it a favorable pick. The company boasts a 55.6% price appreciation YTD.
Newfield Exploration Co. based in Woodlands, TX, is an independent energy company engaged in the exploration and production of crude oil and natural gas. The company holds a Zacks Rank #2 coupled with a Momentum Score of A. The company has seen a 37% price appreciation YTD which makes it an attractive investment option. We are also encouraged by the fact that more than 91% of the brokers covering the stock have recommended a Buy for it.
Saratoga Investment Corp. (SAR - Free Report) is a business development company based in New York. The company carries a Zacks Rank #1, recommended by 100% of the brokers covering the stock, and also a Momentum Score of A, making it a favorable pick. The company boasts an 11.9% price appreciation YTD.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>