Investors can boost portfolio returns in 2025 with momentum stocks focusing on growth potential

From Nasdaq: 2024-12-24 09:35:00

In 2024, the U.S. stock market showed resilience with the S&P 500 up 26.2%, Dow Jones up 13.8%, and Nasdaq up 30.1%. Looking ahead to 2025, growth is expected, driven by consumer spending, technological innovation, and a healthy labor market, despite inflation and geopolitical challenges.

Investors can consider momentum investing for good returns, focusing on short to medium-term trends driven by investor sentiment. Identifying momentum stocks with a favorable Zacks Rank and Momentum Score can lead to solid returns.

Five momentum stocks to watch in 2025 are Carvana Co. (CVNA), Datadog, Inc. (DDOG), Fortinet, Inc. (FTNT), Amazon.com, Inc. (AMZN), and InterDigital, Inc. (IDCC). These companies have positive earnings estimates and strong growth potential.

Carvana is enhancing operational efficiency and focusing on growth, with a Zacks Rank #1 and a Momentum Score of B. Datadog is benefiting from new customer additions and cloud-based solutions. Fortinet is seeing demand from enterprise customers and growth in security subscriptions.

Amazon is thriving in e-commerce and cloud services, with a focus on generative AI. InterDigital is experiencing strong licensing momentum and product innovation in digital technology solutions, positioning it for growth in 2025.

Zacks is naming its top 10 stocks for 2025, with a history of impressive performance. These handpicked stocks will be released on January 2, offering potential for strong returns in the new year.



Read more at Nasdaq: 5 Momentum Stocks Investors Can Add to Boost Portfolio Returns in 2025