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【XM Market Review】--The Best Momentum Stocks to Buy Now
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The purpose of information release is to warn investors of risks and does not constitute any investment advice. The relevant data and information are from third parties and are for reference only. Investors are requested to verify before use and assume all risks.
Hello everyone, today XM Forex will bring you "【XM Market Review】--The Best Momentum Stocks to Buy Now". I hope it will be helpful to you! The original content is as follows:
Volatility has returned to equity markets, and the Magnificent Seven are under pressure as the AI bubble expands.
What are Momentum Stocks?
Momentum stocks are publicly listed xmbob.companies with a significant catalyst driving share prices higher. Cyclicality, secular growth, and corporate events such as earnings releases, mergers and acquisitions, and technical or medicinal breakthroughs are core drivers of momentum stocks. Momentum investors also rely on technical indicators, such as the Relative Strength Index (RSI) and the Moving Average Convergence/Divergence (MACD).
Why Should You Consider Investing in Momentum Stocks?
Market conditions change, and successful investors and traders know when to apply which strategy to ensure maximum returns with minimal risk. Buying momentum stocks can improve returns if investors understand what to look for.
Here are a few things to consider when evaluating momentum stocks:
- Focus on momentum stocks that have outperformed the S&P 500 Index over the past twelve months.
- Invest in momentum stocks that are in an upward cycle or that experience secular growth.
- Analyze momentum stocks in trending industries where they have a disruptive impact.
- Use technical indicators like the MACD or the RSI to fine-tune your entry levels.
- Keep up to date with the data and news flow to make necessary adjustments and exits, as momentum can swing swiftly.
What are the Downsides of Momentum Stocks?
Momentum stocks can swiftly lose their momentum and reverse direction. Investing in momentum stocks requires an active approach, which is time-consuming and not ideal for most retail investors. Momentum investors must also brace for volatility and differentiate between momentum-keeping short-term events and momentum-changing developments.
Here is a shortlist of currently attractive momentum stocks:
- Futu Holdings (FUTU)
- Vertiv Holdings (VRT)
- Planet Labs PBC (PL)
- Flex FLEX)
- Select Medical Holdings (SEM)
- uniQure (QURE)
- Richtech Robotics (RR)
- Western Digital Corporation (WDC)
- Amprius Technologies (AMPX)
- D-Wave Quantum (QBTS)
Update on My Previous Best Momentum Stocks to Buy Now
In my previous installment, I highlighted the upside potential of Futu Holdings and Vertiv Holdings.
Futu Holdings (FUTU) - A long position in FUTU between $177.51 and $191.60
FUTU rose by more than 14% before retreating. It remains in positive territory, and I am holding onto my long positions, as I see more upside ahead.
Vertiv Holdings (VRT) - A long position in VRT between $121.41 and $134.93
VRT skyrocketed nearly 70%, and I closed my positions at $200. It delivered a nice earnings beat, and the uptrend is intact, but I see more choppiness and a potential correction ahead.
Planet Labs PBC Fundamental Analysis
Planet Labs PBC (PL) is a global leader in satellite data and analytics. It is also active in the defense and intelligence sector. PL is also a member of the Russell 2000 Index.
So, why am I bullish on PL after a 100%+ rally since August?
Planet Labs PBC signed an eight-figure contract extension with an unnamed international defense and intelligence customer. It follows similar deals announced with the German government, NATO, the US Department of Defense, the US Navy, and the US National Geospatial-Intelligence Agency. Free cash flow is positive, earnings per share rise at an impressive rate, gross margins remain excellent, and the rising return on capital is encouraging.
Metric
Value
Verdict
P/E Ratio
Unavailable
Bearish
P/B Ratio
10.50
Bearish
PEG Ratio
Unavailable
Bearish
Current Ratio
1.75
Bearish
Return on Assets
-12.99%
Bearish
Return on Equity
-20.76%
Bearish
Profit Margin
Unavailable
Bearish
ROIC-WACC Ratio
Unavailable
Bearish
Dividend Yield
0.00%
Bearish
Planet Labs PBC Fundamental Analysis Snapshot
The price-to-earnings (P/E) ratio is unavailable.
The average analyst price target for PL is $14.55. It suggests moderate upside potential with acceptable downside risks.
Planet Labs PBC Technical Analysis

Planet Labs Price Chart
- The PL D1 chart shows price action trading between its ascending 50.0% and 61.8% Fibonacci Retracement Fan levels.
- It also shows Planet Labs PBC inside of a horizontal support zone.
- The Bull Bear Power Indicator is bullish with an ascending trendline.
My Call on Planet Labs
I am taking a long position in PL between $11.97 and $14.02. While operational statistics are bearish across the board, they are moving in the right direction, led by 20%+ annual revenue growth, rising return on assets, and positive free cash flow from operations. Becoming a member of the Russell 2000 this summer is a testament to its bright outlook.
FLEX Fundamental Analysis
FLEX (FLEX) is the third largest global electronics manufacturing services (EMS) and original design manufacturer (ODM) xmbob.company by revenue. It has manufacturing operations in over 30 countries and employs over 170,000 people. FLEX is also a member of the S&P 400 Index.
So, why am I bullish on FLEX after its earnings beat?
Revenues rose to $6.8 billion with earnings of $0.79, while raising its guidance by over $500 million, driven by expected growth in its data center business. It noted that most tariffs are pass-through tariffs. I am bullish on FLEX and its persified mix of customers, including cloud infrastructure, AI data centers, automotive, and healthcare. The expected earnings-per-share growth rate of over 17% exceeds the industry average, and I see more upside for FLEX.
Metric
Value
Verdict
P/E Ratio
28.11
Bullish
P/B Ratio
4.27
Bearish
PEG Ratio
1.29
Bullish
Current Ratio
1.30
Bearish
Return on Assets
4.77%
Bullish
Return on Equity
17.51%
Bullish
Profit Margin
3.33%
Bullish
ROIC-WACC Ratio
Positive
Bullish
Dividend Yield
0.00%
Bearish
FLEX Fundamental Analysis Snapshot
The price-to-earnings (P/E) ratio of 28.11 makes FLEX an inexpensive stock. By xmbob.comparison, the P/E ratio for the S&P 500 Index is 30.27.
The average analyst price target for FLEX is $74.37. It suggests good upside potential with reasonable downside risk.
FLEX Technical Analysis

FLEX Price Chart
- The FLEX D1 chart shows price action between its ascending 0.0% and 38.2% Fibonacci Retracement Fan levels.
- It also shows FLEX inside a bullish price channel.
- The Bull Bear Power Indicator is bullish with an ascending trendline.
My Call on FLEX
I am taking a long position in FLEX between $61.50 and $66.05. FLEX has an excellent client mix across core growth sectors, maintains an impressive EPS growth rate, and raised its outlook amid expected demand growth.
The above content is all about "【XM Market Review】--The Best Momentum Stocks to Buy Now", which is carefully xmbob.compiled and edited by XM Forex editor. I hope it will be helpful for your trading! Thank you for your support!
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