4 Momentum Stocks To Add To Your Portfolio Now

When I review the market at the end of each day, I see a general trend up as the bull market continues to forge ahead. But when I look at my individual holdings, I see much greater variation. Some holdings have gains, others have losses and still, others barely treaded water for the day. This tells me that the market is all about momentum stocks now.

What are momentum stocks? They are hot stocks that are trending higher and have the consensus opinion and business model behind them to continue going higher. As more investors become aware of these stocks, the share prices will only continue to rise.

So in this post, I’m sharing with you 4 momentum stocks that can make you a decent amount of money, assuming you get in now.

4 Momentum Stocks You Need To Buy Now

#1. Weight Watchers (NYSE: WTW)

Weight Watchers stock has been a lot like many dieters weight loss journeys. Good progress followed by times of falling off the wagon. Earlier this year, Weight Watchers was trading for under $10 a share and if I had known then what I know now, I would have added it to my hot stocks under $10 column.

But Weight Watchers is no longer a cheap stock in terms of price alone. It is now purely one of the momentum stocks.

The company hired the former HSN CEO, Mindy Grossman, and the stock hasn’t looked back.

In their recent earnings report, earnings per share came in at $0.64, beating estimates by $0.16. Revenues were up 10%, beating estimates by $12 million.

With Grossman and Oprah on board, Weight Watchers has a lot of growth and prosperity left in it if you get in now.

#2. Stamps.com (NASDAQ: STMP)

Of all of the IPOs to come about during the dot com boom, who would have imagined that Stamps.com would not only be standing once the dust settled, but would also be a thriving business?

The company has made some very smart acquisitions over the years and with the explosion of e-commerce, the stock is only going to keep rising.

This is evident by the numbers. Revenues are up 38% and operating income is up 67%. The number of paying customers is up 14% and the average monthly revenue earned per customer is up 20%.

This shows that Stamps.com is firing on all cylinders. And with e-commerce continuing to grow, you can expect lots of growth still to come from this company.

#3. Spark Therapeutics (NASDAQ: ONCE)

Out of all the momentum stocks I mention here, Spark Therapeutics is the riskiest one of all. But we all know risk and reward are related, so if things work out, this stock is going to make many investors wealthy.

Why is this stock pick risky? The company deals in gene therapy to try to cure genetic diseases. As a result, the company spends mountains of money in research and trials. While the company does have revenues, they are still losing money because of the high cost of business.

The good news is that Spark Therapeutics has enough cash to stay in business until 2021. So that leaves us with 4 years for them to make headway on genetic diseases and turn a hefty profit. And even if they don’t, they could be a prime takeover target for other biotech firms.

#4. TAL Education Group (TAL)

This stock play goes across the globe to China to reward investors. Tal Education Group helps students with after school tutoring, online courses and one-on-one personalized instruction.

This might not sound that exciting but understand this. China is growing and will one day become the world’s largest economy. Add to this the Chinese belief in getting the best education possible and Tal Education Group is in a win-win situation.

During its recent earnings release, revenues were up 65%. This is the lowest they have increased in the past few quarters. Most times, the rate of increase has been over 80%.

Final Thoughts

So there are 4 momentum stocks for you to add to your portfolio. Many of these have legs and room to continue growing, but that doesn’t mean you should sit back and wait. The prices of these stocks is only going to continue to rise, so the sooner you can get in, the more profit you stand to make.

 

This author has no positions in any stock mentioned and does not plan to open any positions in any stocks mentioned for at least 72 hours after publication of this article.

Disclaimer: Modest ...

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