For a great deal of my early investing years, I was obsessed with finding the “secret formula” to stock riches. I’ve always been rather analytical, and I felt that with all the data available out there, there was bound to be some combination I could put together to help me find winning stocks 100% of the time.
The more I learned about the market and mathematics, the more I realized there is no singular secret formula. Still, you have countless ways to gain an edge by using variables that are in your control.
I’ve always believed that momentum stocks are THE way to trade. It’s simple. I want to buy the stocks that lots of people are talking about and buying. When the talking and buying stops — I’m done. I don’t want to hold a stock for months or years at a time. I want to get in, get out and get money.
Today I’m going to let you in on a few picks I’ve seen pop up in the screen I use to uncover the best momentum stock ideas out there. These stocks have been outperforming the market over the last month, had recent earnings surprises and had recent positive revisions. Add a little technical scrub, and you’ve got the best momentum stocks to buy right now.
Cirrus Logic, Inc. (NASDAQ:CRUS)
Cirrus Logic, Inc. (NASDAQ:CRUS) is a premier supplier of high-precision analog and digital signal processing components for a variety of audio, energy and industrial applications. Cirrus Logic has a strong intellectual property portfolio with 2,100 patents issued and pending, which has driven the development of more than 1,100 products that serve approximately 3,100 end customers globally, through both direct and distributor-based channel sales.
Cirrus Logic is another example of a strong stock in a strong sector. The semiconductor industry ranks in the Top 12% of our Zacks Industry Rank, and CRUS is a Zacks Rank #1 (Strong Buy).
The Zacks Consensus Estimates have been pushing higher over the course of the last 30 days across the board. Two analysts revised their current year and next year estimates over the last month, which changed consensus from $1.67 to $2.06 for the current year and $1.03 to $1.44 for CRUS next year.
Coming off the heels of yet another earnings surprise to the upside, this time coming in at 89 cents versus expectations for 61 cents, CRUS stock has been on fire lately. CRUS stock hit an intraday low of $16.80 on Dec. 2 then reversed and began this latest run.
Since then, Cirrus Logic has jumped nearly every day and now is tipping the scales up here at $28.60.
Rudolph Technologies Inc (NYSE:RTEC)
Rudolph Technologies Inc (NYSE:RTEC) is a stock that probably hasn’t popped up on your radar recently. With a tiny market cap of only 401 million and an average volume at around 250,000, it’s been in stealth mode.
Rudolph Technologies is a worldwide leader in the design, development, manufacture and support of high-performance process control metrology, defect inspection and data analysis systems used by semiconductor device manufacturers. RTEC provides a full-fab solution through its families of proprietary products.
Rudolph Technologies recently found its way to a Zacks Rank #1 (Strong Buy) on the back of upwards earning estimate revisions. Over the last week, analysts have upped their estimates for the current quarter, next quarter and the current year. Estimates for the current quarter and next quarter have both doubled with the current quarter consensus jumping from 4 cents to 8 cents and next quarter from 6 cents to 12 cents. The Zacks Consensus Estimate for the current year has popped up from 33 cents all the way to 59 cents, helping to push along the rally in Rudolph Technologies stock.
And a strong rally it’s been so far. After bottoming out on Oct. 15 at $8.10 with the rest of the market, RTEC has been on a tear. Rising as high as $10.32 on the last trading day of 2014, RTEC stock bounced around in a consolidation range most of January. Since February started, Rudolph Technologies has been on fire, rocketing up over 20% in the last week.
Combining the power of the Zacks Rank with a few key screening criteria you can put together a list of some fantastic momentum stock ideas. These two have already been off to a fantastic start this year. Momentum trading isn’t for everybody, but if you’re a fan of “buy high, sell higher,” these are two great ideas for you to look at today.
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