There’s a lot of talk these days about the death of momentum stocks.
Whether it be the flame-out of biotech stocks earlier in the year, the meltdown in trendy sectors like cloud computing or 3D printing companies, or just the crash of big tech names, it’s clear that the pain can be just as acute as the gain in momentum stocks. All it takes is a change in direction, and momentum works against investors in a big way.
Still, in this environment you can’t afford to shy away from all high-growth, high-risk opportunities. After all, FactSet estimates that Q1 profit growth was a meager 2.1% — with weak guidance to boot.
Even if it means flirting with super-high valuations, investors have to look somewhere if they want to find growth.
So to help you avoid the momentum stocks that are melting down and find the high-growth opportunities that have the most upside, here are five picks that are seeing impressive earnings expansion and sales growth, and deserve your attention despite volatility and valuation concerns.