From Nasdaq Corporation
July 10, 2024 08:29:00 AM:

The U.S. equity markets hit record highs on optimism over rate cuts due to easing inflation and rising unemployment. June data showed a higher-than-expected 206,000 nonfarm payrolls, but unemployment rose to 4.1%. Federal Reserve Chair Powell hinted at a less-restrictive stance, further boosting optimism for a September rate cut.

Momentum investing is a strategy to profit from stock trends by buying high and selling higher. It relies on human tendency to extrapolate trends into the future. Stocks like Brinker International, Aspen Aerogels, and Coinbase Global show potential for momentum gains.

Brinker International focuses on sales-building initiatives to drive traffic and revenue for its restaurant brands. Aspen Aerogels is a technology leader in sustainability solutions. Coinbase is a financial infrastructure provider for the crypto economy. All three stocks have shown significant gains in the past year, with potential for further momentum growth.

To identify potential momentum stocks, a screening strategy includes criteria like percentage change in price, Zacks Rank, momentum style score, price, market capitalization, and trading volume. By using these parameters, investors can find stocks with strong momentum potential for profitable trades.

Read more at Nasdaq: 3 Momentum Anomaly Stocks to Buy as Rate Cut Odds Increase