5 “Must-Buy” Momentum Stocks (ATO, CINF, CRM, G, TTWO)

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. But there are countless ways you can gain an edge by using variables that are in your control.

Click “FOLLOW THE AUTHOR” for free stock picks!!! And Twitter @bartosiastics

The cornerstone of my edge today is the Zacks Rank. When I first arrived here at Zacks I was impressed by the historical numbers surrounding it, the 26% annualized returns destroying the S&P 500. Now I’ve personally seen it work time and time again in my own trading and my own service.

“No ‘mentum Like Momentum”

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 buying and lots of people are talking about. When they stop, I’m done. I don’t want to hold a stock for months or years at a time. I want to get it, get out, and get money.

Today I’m going to let you in on a few picks I’ve seen pop up in my momentum screen I use to uncover the best momentum stock ideas out there. These stocks have been outperforming the market over the last month, have had a recent earnings surprise, and a recent positive earnings estimate revision. Then you add a little technical scrub and you’ve got the best momentum stocks to buy right now.

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Must Buy Momentum Stocks: Atmos Energy (ATO)

Atmos Energy (ATO), together with its subsidiaries, engages in the distribution, transmission, and storage of natural gas in the United States. It operates in three segments: Regulated Distribution, Regulated Pipeline, and Nonregulated.

Shares of Atmos broke out of their malaise that saw them range bound for most of the year. The breakout from $58 in September ran into resistance above $63, sending shares tumbling back down below $60 before the buyers stepped back in. With a commodity channel index that’s popped up above the zero line recently it looks like ATO will make another run at the highs in the near term.

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Must Buy Momentum Stocks: Cincinnati Financial (CINF)

Cincinnati Financial (CINF) engages in the property casualty insurance business in the United States. It operates in five segments: Commercial Lines Insurance, Personal Lines Insurance, Excess and Surplus Lines Insurance, Life Insurance, and Investments.

Usually banks are very boring stocks to own. That hasn’t been the case with Cincinnati Financial over the last few months. Shares bounced off support down at $50 in late August and really haven’t turned back. The run throughout October consolidated briefly during this month but now it appears we are breaking higher again. Support remains near $59.

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Must Buy Momentum Stocks: Salesforce.com (CRM)

Salesforce.com (CRM) provides enterprise cloud computing solutions, with a focus on customer relationship management to various businesses and industries worldwide. The company offers enterprise cloud computing apps and platform services, including Sales Cloud for sales force automation, which enables companies to store data, access accurate customer and prospect information, track leads and progress, forecast opportunities, and collaborate around any sale on desktop and mobile devices.

CRM shares are up big in response to their latest earnings report where the company came in breakeven on EPS. Shares spiked to $83 following the report but have since come down to $80.78. With lots of resistance previously at $80, that should provide some solid report here, giving you a fantastic risk/reward scenario because you can place such a tight stop.

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Must Buy Momentum Stocks: Genpact (G)

Genpact (G) provides business process outsourcing and information technology services worldwide. The company offers finance and accounting services that include accounts payable services comprising document management, invoice processing, approval, and resolution management solutions.

A big band of volume went out just below $25, cementing that area as support to the downside. The last probe higher reversed just shy of $26 but it didn’t run out of gas on heavy volume, just an absence of buyers. With the intermediate term trend still intact and very bullish I think Genpact can continue to hit new highs.

Click “FOLLOW THE AUTHOR” for free stock picks!!! And Twitter @bartosiastics

Must Buy Momentum Stocks: Take Two Interactive (TTWO)

Take-Two Interactive Software (TTWO) develops, publishes, and markets interactive entertainment for consumers worldwide. The company offers its products under the Rockstar Games and 2K labels. It develops and publishes action/adventure products under the Grand Theft Auto, Max Payne, Midnight Club, and Red Dead names through developing sequels; offering downloadable episodes, and content and currency; and releasing titles for smartphones and tablets.

One of my favorite video game studios is at is again as shares have marched higher over the last few months. A decent band of support near $33 is the first area of buying while the big chuck down at $31 should provide even more peace of mind. The probe higher to $37 in early November should be retested in the short run.

Bottom Line on Momentum Stocks

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.

Be sure to click FOLLOW THE AUTHOR above to stay on top of all the hot momentum stocks at Zacks.com. David Bartosiak is the Momentum Stock Strategist with Zacks, editor of the Momentum Trader and Home Run Investor, and host of “Trending Stocks”

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

TAKE-TWO INTER (TTWO): Free Stock Analysis Report

GENPACT LTD (G): Free Stock Analysis Report

SALESFORCE.COM (CRM): Free Stock Analysis Report

CINCINNATI FINL (CINF): Free Stock Analysis Report

ATMOS ENERGY CP (ATO): Free Stock Analysis Report

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