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In this article, we look at the 13 best momentum stocks to buy right now. If you want to skip an overview of different types of trading strategies and the latest stock market news, read below. 5 Best Momentum Stocks to Buy Now.
When it comes to trading, strategies can usually follow two different directions. One of the more commonly understood trading strategies is fundamentals-based trading. This strategy focuses on a company’s earning capacity, analyzing its income statement and balance sheet to identify costs, assets, and other financial indicators that may suggest future growth and corresponding increases in stock price. Evaluate.
The second direction or strategy is determined by technical indicators. Rather than focusing on fundamentals such as earnings per share or dividends, a technical trading approach analyzes stock price trends and movements. It takes into account a variety of factors, including the amount of stocks traded, whether a stock is overbought or oversold if the price is above or below its long-term average, and the percentage of return provided by price. Masu. Technical analysts believe that by combining these factors, you can take advantage of emerging market trends before they explode to your advantage.
One type of technical trading strategy is called momentum trading. For those on the outside, analyzing a stock’s momentum has nothing to do with its balance sheet. Instead, you should look at stock price movements to see if there is further upside or downside that would warrant an investment decision. A momentum trader’s toolkit includes an average directional index, moving averages, a stochastic oscillator (also known as a relative strength index, or RSI), and a simple way to determine whether a current stock level is part of a broader bull market. Contains several “tools” such as trend lines. Or a downward trend.
Together, these enable you to make informed decisions. For example, consider hypothetical stock A. A has an RSI reading of 19, the stock is in a long-term uptrend, and an ADX reading of 40. Since the RSI reading indicates that the stock is good, investors may conclude this correctly. If the stock is oversold and the stock is trending upwards, a high ASX number can indicate the existence of a trend and could give you an opportunity to profit. Of course, just as all investment decisions should be made after consulting a qualified investment professional, trying to read the technical tea leaves is also important, as conclusions like this one should be made along with fundamental readings. If evaluated, it may produce better results. So if stock A has a lot of debt and declining earnings, it’s not worth the bet to hold stock A for the long term unless insiders and institutional investors know something the broader market doesn’t. Maybe not.
That aside, one way momentum stocks benefit is through the influence of macroeconomic news, events, and stock market trends. To be honest, in 2022-2023, the market has been held hostage by these events. Whether predicting a recession, rising interest rates or higher inflation, the market sees investors swing between bears and bulls depending on the nature of the data set. All eyes are now on the Fed and the January 2024 inflation rate, which will help investors decide when the Fed will start cutting rates to ease the economy and further boost markets.
These are very dynamic times for the stock market, so we decided to take a look at some of the hottest stocks that hedge funds are buying. After all, even the smallest piece of news can create a huge buzz, and hedge funds are waiting to cash in. Top momentum stocks include Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), and Meta Platforms, Inc. (NASDAQ:META).
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our methodology
To create our list of the best momentum stocks, we ranked the top 100 holdings of the iShares MSCI USA Momentum Factor ETF based on the number of hedge funds that purchased the stock as of the end of Q4 2023. We selected the top brands from among them.
For these top momentum stocks, we used hedge fund sentiment. The top 10 consensus stocks selected by hedge funds have outperformed the S&P 500 index by more than 140 percentage points over the past 10 years (Please see here for the detail). That’s why we pay close attention to this often ignored metric.
13 best momentum stocks to buy right now
13. Broadcom Corporation (NASDAQ:AVGO)
Number of hedge fund investors in Q4 2023: 91
Broadcom Inc. (NASDAQ:AVGO) is one of the world’s largest semiconductor companies. We design chips such as modems used in smartphones. The stock has an average rating of Buy, but the average price target is lower than the current price.
During the fourth quarter of 2023, 91 out of 933 hedge funds profiled by Insider Monkey held Broadcom Inc. (NASDAQ:AVGO) stock. Ken Fisher’s Fisher Asset Management has become the company’s largest investor, with a $2.3 billion stake.
According to Hedge, Broadcom Inc. (NASDAQ:AVGO) is among the top momentum stocks, along with Microsoft Corp. (NASDAQ:MSFT), Amazon.com Inc. (NASDAQ:AMZN), and Meta Platforms Inc. (NASDAQ:META). It’s a brand. funds.
12. ServiceNow, Inc. (NYSE:NOW)
Number of hedge fund investors in Q4 2023: 91
ServiceNow, Inc. (NYSE:NOW) is a software technology company with a platform that enables companies to perform analytics and other tasks. ServiceNow, Inc. (NYSE: NOW) not only beat analysts’ EPS estimates for each of the trailing four quarters, but is also rated a Strong Buy by average and average analyst share. One of the highest rated stocks on our list. Target price is $847.55.
By the end of last year’s fourth quarter, 91 of the 933 hedge funds in Insider Monkey’s database were shareholders in ServiceNow, Inc. (NYSE:NOW). The largest stake was held by Ken Fisher’s Fisher Asset Management, valued at $1 billion.
11. General Electric Company (NYSE:GE)
Number of hedge fund investors in Q4 2023: 92
General Electric Company (NYSE:GE) is a leading American industrial products company headquartered in Boston, Massachusetts. The size of General Electric Company (NYSE:GE) makes it an important stock to watch this year as the company streamlines its operations through sales and planned spinoffs of business units in the coming months. It becomes.
Insider Monkey examined the portfolios of 910 hedge funds for their holdings in Q4 2023 and found that 92 stocks held shares in the company. The largest shareholder of General Electric Company (NYSE: GE) in our database is Chris Horn’s TCI Fund Management with an investment of $5.3 billion.
10. Oracle Corporation (NYSE:ORCL)
Number of hedge fund investors in Q4 2023: 100
Oracle Corporation (NYSE:ORCL) is an American software company whose enterprise resource planning software is used around the world. The company won in February 2024 when it revealed that the state of North Carolina was using its financial management platform.
As of the end of December 2023, 100 of the 933 hedge funds surveyed by Insider Monkey were investors in the company. The largest shareholder of Oracle Corporation (NYSE: ORCL) in our database is Jean-Marie Heveillard’s First Eagle Investment Management, with $1.9 billion worth of shares.
9. Eli Lilly & Company (NYSE:LLY)
Number of hedge fund investors in Q4 2023: 102
Eli Lilly & Company (NYSE:LLY) is one of the largest pharmaceutical companies in the United States and the world. Despite the company’s weight loss drug dominating the news cycle, February 2024 is shaping up to be a bittersweet month for the company, with the departure of its treasurer of 28 years.
During the December 2023 quarter, 102 of the 933 hedge funds tracked by Insider Monkey had Eli Lilly & Company (NYSE:LLY) shareholders. Ken Fisher’s Fisher Asset Management was the largest investor with a stake worth $2.6 billion.
8. Adobe (NASDAQ:ADBE)
Number of hedge fund investors in Q4 2023: 105
Adobe Inc. (NASDAQ:ADBE) is a productivity software company known for products such as readers and image editing software. The company’s stock, a primary beneficiary of AI that enables customers to improve their design processes, has an average rating of “Strong Buy” and an average price target of $652.57.
Insider Monkey researched 933 hedge fund holdings in the December quarter of last year and found 105 Adobe Inc. (NASDAQ:ADBE) shareholders. Ken Fisher’s Fisher Asset Management became the company’s biggest investor with a $2.7 billion stake.
7. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of hedge fund investors in Q4 2023: 120
Advanced Micro Devices, Inc. (NASDAQ:AMD) is an American semiconductor design company headquartered in Santa Clara, California. In February 2024, the company announced a new product that combines embedded computing and system-on-chip (SoC) models, expanding its product portfolio.
Of the 933 hedge funds surveyed by Insider Monkey, 120 had invested in the company by the end of the fourth quarter of 2023. Advanced Micro Devices, Inc. (NASDAQ: AMD)’s largest hedge fund shareholder is Ken Fisher’s Fisher Asset Management with his 28 million shares worth $4.1 billion.
6. Uber Technologies, Inc. (NYSE:UBER)
Number of hedge fund investors in Q4 2023: 129
Uber Technologies, Inc. (NYSE:UBER) is a software company that provides a platform that enables riders and drivers to collaborate with each other. 2024 is likely to be an important month for the company, as it may be forced to recognize some drivers as full-time employees depending on their job description.
129 of the 933 hedge funds in Insider Monkey’s Q4 2023 database bought and owned shares in the company. The largest hedge fund shareholder in Uber Technologies, Inc. (NYSE:UBER) is DE Shaw with his $886 million investment.
Amazon.com, Inc. (NASDAQ:AMZN), Uber Technologies, Inc. (NYSE:UBER), Microsoft Corporation (NASDAQ:MSFT), and Meta Platforms, Inc. (NASDAQ:META) are among the stocks with the most momentum. Part of it.
CClick here to read more and check out the 5 Best Momentum Stocks to Buy Now.
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Disclosure: None. 13 best momentum stocks to buy right now Originally published on Insider Monkey.
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