Best Momentum Stock to Buy for January 2nd

Here are three stocks with buy rank and strong momentum characteristics for investors to consider today, January 2nd:

Pan American Silver PAAS: This mining company, which is focused exclusively on silver, has a Zacks Rank #1(Strong Buy), and witnessed the Zacks Consensus Estimate for its current year earnings increasing 2.3% over the last 60 days.

Pan American Silver Corp. Price and Consensus

Pan American Silver Corp. price-consensus-chart | Pan American Silver Corp. Quote

Pan American Silver’s shares gained 33.1% over the last three month compared with the S&P 500’s gain of 1.9%. The company possesses a Momentum Score of A.

Pan American Silver Corp. Price

Pan American Silver Corp. price | Pan American Silver Corp. Quote

USCB Financial USCB: This community bank which offers personal, business and electronic banking, as well as provides credit and debit card, loans, saving accounts, leasing, retirement plans and insurance services, has a Zacks Rank #1, and witnessed the Zacks Consensus Estimate for its current year earnings increasing 2.4% over the last 60 days.

USCB Financial Holdings, Inc. Price and Consensus

USCB Financial Holdings, Inc. price-consensus-chart | USCB Financial Holdings, Inc. Quote

USCB Financial’s shares gained 8.1% over the last three month compared with the S&P 500’s gain of 1.9%. The company possesses a Momentum Score of A.

USCB Financial Holdings, Inc. Price

USCB Financial Holdings, Inc. price | USCB Financial Holdings, Inc. Quote

Allied Gold Corporation AAUC: This gold producer, which operates a portfolio of producing assets and development projects located principally in Cote d’Ivoire, Mali and Ethiopia, has a Zacks Rank #1, and witnessed the Zacks Consensus Estimate for its current year earnings increasing 7% over the last 60 days.

As Nvidia dances on the ceiling of the trillion-dollar club, another contender emerges in the AI chipmaking realm. While Broadcom has made strides in networking and AI accelerator chips, it's not the dark horse for the trillion-dollar congregation. Eyes turn to Taiwan Semiconductor Manufacturing Company (TSMC), waiting in the wings to ascend the throne.

Image source: Getty Images.

A Mighty Player in the Shadows

TSMC reigns supreme as the largest chip fabricator globally, commanding a lion's share of foundry spending. Armed with cutting-edge chip manufacturing prowess, boasting unmatched power efficiency and computational might, TSMC etches its mark in the AI landscape and beyond.

The company's colossal scale fosters a formidable advantage over competitors. Its robust revenue streams fuel relentless investments in research and development, ensuring TSMC stands at the vanguard of chip manufacturing innovation.

Driving Growth on the Semiconductor Highway

Painting a rosy future, TSMC anticipates a fruitful trajectory in the upcoming years. With third-quarter revenue forecasts standing tall at $22.4 billion to $23.2 billion, the company flaunts remarkable year-on-year growth figures. Additionally, a projected increase in gross margin signals pricing resilience amid escalating customer demands.

Amidst the backdrop of tech giants doubling down on AI infrastructure, such as Meta Platforms and Alphabet, TSMC stands poised to ride the crest of this technological wave. With an eye on pronounced capex expansions by industry behemoths, TSMC anticipates a windfall of demand for its chipsets.

Image source: Getty Images.

An air of anticipation looms over the tech sphere as the impending Apple iPhone release promises a host of new AI features. The allure of cutting-edge technology is expected to drive a surge in iPhone upgrades, propelling a ripple effect of chip demand, with TSMC positioned at the helm of this impending surge.

The Valuation Conundrum

Despite TSMC's colossal $875 billion market capitalization, its shares appear undervalued at current prices. Trading at a modest forward price-to-earnings ratio of 26.5, coupled with robust revenue growth and margin expansion, the company is forecasted to sustain earnings growth exceeding 20% annually. Analysts project a steady trajectory of 21.5% earnings growth per annum over the ensuing five years, painting a promising picture for investors.

Avoiding the Bandwagon: An Analysis of Taiwan Semiconductor Manufacturing

Allied Gold Corporation Price and Consensus

Allied Gold Corporation price-consensus-chart | Allied Gold Corporation Quote

Allied Gold Corporation’s shares gained 25.6% over the last three month compared with the S&P 500’s gain of 1.9%. The company possesses a Momentum Score of A.

Allied Gold Corporation Price

Allied Gold Corporation price | Allied Gold Corporation Quote

See the full list of top ranked stocks here

Learn more about the Momentum score and how it is calculated here.

Quantum Computing Stocks Set To Soar

Artificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.

Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you’ll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.

Access the Report Free Now >>

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

Pan American Silver Corp. (PAAS) : Free Stock Analysis Report

USCB Financial Holdings, Inc. (USCB) : Free Stock Analysis Report

Allied Gold Corporation (AAUC) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

5 Stocks Our Experts Predict Could Double In the Next Year

By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.