For those eager to boost their portfolio’s performance, there’s plenty to celebrate amidst the market’s roller-coaster dynamics. While many stocks have experienced turbulent times, a select group has demonstrated sturdy performance. These momentum stocks to buy soon offer a distinctive opportunity for investors to harness their upward trajectory, potentially elevating your portfolio to new heights during an imminent bull run.
Although catching the start of a trend might not always be feasible, the key lies in identifying stocks that have gained momentum and are likely to ride their wave as long as possible. While the timing of the next bull market remains uncertain, there’s ample reason for optimism. Historically, bear markets, like the one we’ve experienced since last year, inevitably give way to periods of market growth. With that said, here are three momentum stocks to buy soon as they will not only weather the market volatility, but are likely to thrive in it as well.
Li Auto (LI)
Li Auto (NASDAQ:LI) is charting a unique path in the bustling Chinese EV market, focusing on domestic expansion rather than global outreach. This strategy is paying off handsomely for the firm, as evidenced by its stellar delivery growth. Unlike its peers, Li Auto’s concentrated approach is keeping costs in check, a smart move in a competitive industry.
Financially, Li Auto is on solid ground. With a robust cash reserve of $12.1 billion as of the third quarter and a healthy free cash flow of $1.8 billion, the company is in a robust position to fuel further innovation and expansion. Moreover, Li Auto’s recent revenue surge of $4.75 billion in its third quarter, representing a staggering 271.3% year-over-year increase, is a testament to its strategy’s effectiveness. The company’s focus on smart electric SUVs, enhanced by services including charging and internet connectivity, continues to resonate with consumers. With vehicle deliveries reaching over 100,000 units and a year-to-date stock return of over 80%, Li Auto is not just riding the EV wave; it’s leading it with aplomb.
Micron Technology (MU)
Micron Technology (NASDAQ:MU) is carving out a formidable position in the info-tech landscape, especially within the fast-evolving semiconductor sector. The company’s steady sales and EPS growth, coupled with the reinstatement of its dividend, underscore its strong fundamentals. As Micron aims to leverage opportunities in AI and electric vehicles, it is facing challenges, including negative gross margins and hurdles in the PC market. Yet, the potential for long-term growth remains significant.
Furthermore, the current surge in demand for memory chips, driven largely by AI advancements, positions Micron at the forefront of this tech revolution. According to CEO Sanjay Mehrotra, memory plays a crucial role in AI, and as the amount of data grows, so does the demand for more memory. His vision suggests a bright future for memory and storage companies, outpacing the broader semiconductor sector’s growth. Micron’s financial performance adds to this optimistic outlook. Moreover, the stock has been a tremendous wealth compounder, with it returning 94% in value to its shareholders over the past three years. Also, the stock is up over 50% year-to-date, a remarkable feat considering the market’s choppiness, and making it one of the better momentum stocks to buy soon.
Meta Platforms (META)
The digital world is undergoing a dramatic transformation and Meta Platforms (NASDAQ:META) remains at the forefront of this change. Celebrating its “year of efficiency,” Meta has streamlined its business, leading to an incredible increase in its share price. The company’s third-quarter results are a clear indicator of its strength, with a GAAP EPS of $4.39, surpassing expectations by 76 cents. Additionally, with a 23.2% year-over-year growth in sales reaching $34.15 billion, Meta exceeded market estimates by a massive $590 million.
A key factor in Meta’s impressive growth is its ongoing investment in AI technology, supported by robust sales from its core social media platforms. In the third quarter, Meta saw a 31% increase in ad impressions across its diverse app portfolio. The company is also innovating in AI, integrating chatbots into social platforms like Facebook and Instagram to provide users with assistance and interaction, showcasing Meta’s positioning in the AI domain. With initiatives including generative AI tools and new monetization strategies, including Reels, Meta isn’t just adapting to the digital landscape but actively reshaping it.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines