Seeking Silver Linings: Top Momentum Stocks for Investment

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By Ronald Tech

A Rolling Stone Gathers No Moss: Three stocks stand out today, April 11th, with a confluence of buy rank and robust momentum attributes, catching the eye of astute investors.

MakeMyTrip Limited: Leading the Charge

This online travel juggernaut, MakeMyTrip Limited (MMYT), shines brightly with a Zacks Rank #1. Analysts have ramped up their forecasts, with the Zacks Consensus Estimate for next year’s earnings ticking up by a commendable 2.1% in the past 60 days.

MakeMyTrip Limited: Scaling Peaks

MakeMyTrip Limited’s shares have surged by an impressive 47.9% over the preceding three months, clearly outpacing the S&P 500’s more modest advancement of 9.1%. Boasting a robust Momentum Score of B, the company seems poised for even greater heights.

Core & Main, Inc.: Riding the Waves

Core & Main, Inc. (CNM) is making waves as a distributor of crucial water, wastewater, and fire protection products. Notably, the company has clinched a Zacks Rank #1, with analysts upping their forecast for current year earnings by a notable 5.3% over the past 60 days.

Core & Main, Inc.: Making a Splash

Core & Main’s stock has surged by an impressive 37.9% over the previous quarter, leaving the S&P 500’s 9.1% growth rate in its wake. With a Momentum Score of B, the company’s growth trajectory is certainly one to watch.

AB Volvo (publ): Engineered for Success

AB Volvo (publ) VLVLY, a renowned manufacturer of trucks, buses, and industrial engines, occupies an enviable position with a Zacks Rank #1. Analysts have raised their estimate for the current year’s earnings by a substantial 9.4% in the last 60 days.

See also  Insights Into Magnificent 7 Earnings PerformanceMarket Disappointment and Precursors

The market reception of the recent earnings reports from Alphabet (GOOGL) and Tesla (TSLA) left much to be desired among investors. This reaction, particularly towards Alphabet's results, may serve as an ominous foreshadowing of what is to come this week as four other members of 'The Magnificent 7' gear up to report.

Alphabet vs. Tesla Performance

Despite Tesla missing consensus estimates and facing margin pressures, Alphabet managed to beat estimates with several positive outcomes, notably in search and cloud areas. However, the spotlight shifted to Alphabet's larger-than-anticipated capital expenditures, raising concerns about ongoing AI-focused capex and its eventual returns. The worries were accentuated by Alphabet's management highlighting the risk of underinvestment. In contrast, Tesla experienced a drop in Q2 earnings, while Alphabet marked a 28.6% increase year-over-year with a 15% rise in revenues.

Future Outlook for Mag 7

The impending reports from Meta Platforms, Microsoft, Amazon, and Apple are expected to reflect on capital expenditures, growth trends in cloud services, and market skepticism towards AI initiatives. Amazon faces scrutiny over decelerating cloud growth compared to its peers, while Apple's focus remains on evolving iPhone trends in the Chinese market.

Group Performance and Expectations

The 'Mag 7' stocks are projected to showcase a 26.8% surge in earnings and a 13.7% increase in revenues compared to the same period last year. This sector is a crucial driver of the broader Technology industry, which anticipates a 16.8% earnings uptick and 9.5% revenue growth for Q2.

Industry Sector Growth Analysis

The Technology sector, buoyed by an upswing in estimates for the Mag 7 stocks, has witnessed a positive trend in recent quarters. The upcoming earnings season, with a multitude of companies preparing to report results, including key players like McDonald’s, Proctor & Gamble, and Pfizer, is expected to provide further insights into sector performance.

Earnings Landscape Overview

With over 41% of S&P 500 members already having disclosed Q2 results, the overall earnings show a modest 0.6% increase year-over-year alongside a 4.9% rise in revenues. As the reporting cycle gains momentum, eyes are on the broader market to gauge earnings and revenue beats.

Insights Into Q2 Revenue Trends

Notably, the Q2 revenue beats percentage hit a historic low of 57.5% for the 207 index members, indicating a demanding quarter compared to the last two decades.

Earnings Big Picture Analysis

When considering the aggregate picture for Q2, S&P 500 earnings are predicted to grow by 6.9% year-over-year with a 5.2% increase in revenues. The promising revisions trend observed prior to the earnings season underscores a positive outlook for the quarter's financial performance.

Analysis of Index Level Aggregate Earnings GrowthThe Landscape of Aggregate Earnings Growth

AB Volvo: Accelerating Forward

AB Volvo has seen its stock soar by 11.7% in the past three months, easily eclipsing the S&P 500’s growth rate of 9.1%. Backed by a formidable Momentum Score of A, AB Volvo seems to be in the fast lane towards continued success.

For a comprehensive list of top-ranked stocks, be sure to check out further details on momentum scores and calculations here.