Some stocks with unstoppable momentum have come up on my radar, and I think investors should know about these. Despite the risks, momentum stocks can potentially offer outsized returns if chosen carefully. However, it’s crucial to understand that these types of investments are highly speculative and volatile.

Momentum stocks are those that have shown an upward price trend over a certain period. They attract investors due to their recent strong performance, leading to further buying and driving prices higher. This positive feedback loop can result in significant gains, but it also comes with increased risk.
With that major caveat in mind, here are a few momentum stocks that have piqued my interest recently based on their underlying business prospects

I think that every investor could benefit by allocating a small part of their portfolios to these companies. Even laying down $500 into momentum stocks for a $10,000 portfolio could improve risk-adjusted returns over the long run, which keeps the big picture in mind for many investors.

Kroger (KR)

Kroger (NYSE:KR), a major grocery chain, is well-positioned to benefit from reduced borrowing costs and increased consumer spending due to the anticipated rate cuts this year. I believe that the market is pricing them in strongly to KR’s stock price.

Despite its strong fundamentals, KR stock often goes unnoticed by investors.

For 2024, the company plans to focus on cost-saving measures and expects identical sales growth between 0.25% and 1.75%, an adjusted operating profit between $4.6 and $4.8 billion, and an adjusted earnings per share (EPS) between $4.30 and $4.50.

Analysts predict a significant 54.28% surge in EPS for KR stock, reaching $4.57. As Americans prioritize essential spending due to the cost of living crisis, Kroger is likely to benefit.

Investors should consider KR stock as an underappreciated opportunity with strong momentum potential, as it has already gained 12.34% year-to-date and could become a rocket ship once the rate cuts are announced. This is one of the top stocks with unstoppable momentum.

Coinbase (COIN)

Coinbase (NASDAQ:COIN) has flown under the radar despite fluctuations in its stock price. It remains a key player in the digital currency exchange market.

Additionally, COIN reported a significant rebound in its recent quarterly earnings. Earnings per share of $1.04 surpassed analysts’ expectations by a substantial margin. The previous consensus estimate predicted a loss of $0.09 per share. Revenue for the quarter was $953.8 million, which also exceeded expectations by a notable amount.

COIN is one of my top overlooked momentum stocks for this year as Bitcoin (BTC-USD) continues its wild ride, oscillating in the $64,000 range.

Bitcoin’s full potential is still undiscovered by the market, with price predictions for 2024 varying widely. Some analysts project Bitcoin could reach anywhere from $70,000 to as high as $150,000 by the end of the year. This too will have important implications for COIN, and I think we’re going to see a record-breaking year for the company, which could give it unstoppable momentum.

Rigetti Computing (RGTI)

Rigetti Computing (NASDAQ:RGTI) remains one of the undiscovered gems in the realm of hybrid quantum-classical computing.

Despite being unprofitable like many other pure-play quantum computing stocks, RGTI’s shares are attractively valued, trading at approximately 10 times earnings. Wall Street analysts are optimistic about its prospects, often rating the company as a Strong Buy.

The stock has gained 14.13% year-to-date and I believe that we’ve only started to tap into the company’s full potential. Regarding its valuation, Rigetti Computing has a market cap of around $190.64 million and an enterprise value of $113.96 million. It’s therefore competitively priced, especially when its outlook is fully considered.

In recent news, Rigetti announced a significant win in the Innovate UK Competition, securing a contract to deliver a 24-qubit quantum computing system to the National Quantum Computing Centre (NQCC). This partnership is expected to accelerate the development of quantum applications. If you are looking for stocks with unstoppable momentum, start here.

On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.