Positive. Certara Inc. up 30% YTD with strong outlook and buyback program. Lovesac Co. beat earnings.

From Nasdaq: 2025-04-21 08:00:00

Following unanticipated tariff policy changes in early April, the market experienced a major rebound, but recovery has been uneven. Some firms are slow to regain lost ground, creating opportunities for faster-moving stocks to shine as momentum plays. Investors should consider if factors driving momentum are short-term or long-term indicators.

In the software-based drug development sector, two companies have emerged as momentum plays due to positive results, technological advancements, and regulatory developments. Meanwhile, a furniture maker showcases adaptability amidst tariff uncertainty, which could continue affecting stocks reliant on imports. Certara Inc. surged 30% YTD on a strong outlook and $100M buyback program.

Certara Inc., a model-informed biosimulation firm, gained investor attention with its software-designed drug development technology. Reiterating full-year guidance and authorizing a $100M share repurchase program, Certara’s stock saw a boost. The release of a new version of the Simcyp Simulator further fueled upward momentum, leading to a 30% YTD increase.

Schrödinger Inc., specializing in software for drug discovery, experienced a 25% YTD surge. The FDA’s shift towards human-relevant testing methods and a legal resolution accelerated the rally in Schrödinger’s shares. Expanded partnerships, including a deal with Novartis AG, are expected to boost revenue for the company.

The Lovesac Co., known for modular furniture, soared 23% following an earnings beat and new product launches. With a P/S ratio of 0.43, analysts believe the stock may be undervalued and predict a 62% increase. Lovesac’s flexible supply chain design and redundant sourcing have positioned it well amidst rising materials costs due to tariffs.



Read more at Nasdaq:: 3 Momentum Stocks That Could Soar Post-Market Volatility