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3 Hot Stocks Suited for Momentum Investors

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Momentum investors look to ride bullish trends where buyers are in control.

And pairing the strategy with the Zacks Rank makes the approach even more potent. Three stocks – EMCOR (EME - Free Report) , Progressive (PGR - Free Report) , and Sprouts Farmers Market (SFM - Free Report) – fit the strategy.

All three have seen positive price action recently, displaying relative strength compared to major indices. In addition, all three sport a favorable Zacks Rank, reflecting upward-trending earnings estimate revisions.

Below is a chart illustrating the performance of each over the last month, with the S&P 500 blended in as a benchmark.

Zacks Investment Research
Image Source: Zacks Investment Research

Let’s take a closer look at each.

EMCOR Posts Record Results

EMCOR, a Zacks Rank #1 (Strong Buy), is a leading provider of mechanical and electrical construction, industrial and energy infrastructure, and building services for a diverse range of businesses.

Sales expectations for the company melted higher after a recent guidance upgrade that followed its latest record-breaking quarterly release. The company posted both record sales and diluted EPS, owing to the red-hot demand it’s been witnessing.

Below is a chart illustrating the company’s sales on a quarterly basis.

Zacks Investment Research
Image Source: Zacks Investment Research

PGR Shares Keep Climbing

Progressive is a leading independent agency writer of private passenger auto coverage and the market share leader for motorcycle products since 1998. Analysts have raised their earnings expectations across the board, landing the stock into a Zacks Rank #1 (Strong Buy).

Zacks Investment Research
Image Source: Zacks Investment Research

The stock remains a prime consideration for growth-focused investors, with consensus expectations for its current fiscal year (FY24) suggesting 110% earnings growth. Peeking ahead to FY25, expectations currently allude to an additional 4.5% growth in earnings on nearly 15% higher sales.

SFM Sees Bullish Outlook

Sprouts Farmers Market operates a unique grocery model that features fresh produce, a foods section, and a vitamin department focused on overall wellness. The stock holds the highly-coveted Zacks Rank #1 (Strong Buy), with its outlook moving higher across the board following robust quarterly results.

As highlighted below, the outlook for its current and next fiscal year have become notably bullish over recent months, likely to continue powering shares higher.

Zacks Investment Research
Image Source: Zacks Investment Research

Bottom Line

Momentum investing is all about riding bullish trends where buyers are in control.

And buyers have certainly been in control of all three stocks above – EMCOR (EME - Free Report) , Progressive (PGR - Free Report) , and Sprouts Farmers Market (SFM - Free Report) – with shares of each soaring over the last month.

In addition to considerable momentum, all three sport a favorable Zacks Rank, reflecting upward trending estimate revisions among analysts.


See More Zacks Research for These Tickers


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The Progressive Corporation (PGR) - free report >>

EMCOR Group, Inc. (EME) - free report >>

Sprouts Farmers Market, Inc. (SFM) - free report >>

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