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7 Momentum Stocks That Show No Signs of Slowing Down

Ride the rising tide is the prevailing theory behind investing in momentum stocks. It’s essentially the polar opposite of buy low, sell high investing….

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This article was originally published by Investor Place

Ride the rising tide is the prevailing theory behind investing in momentum stocks. It’s essentially the polar opposite of buy low, sell high investing. Moreover, one of the advantageous aspects of momentum investing is that it works best in bull markets. Investors tend to herd in to a higher degree in bull markets. Fortunately for investors, we are currently in the midst of a bull market right now. 

Of course, everyone is familiar with the concept of momentum. Technically, momentum can be measured as the rate of acceleration or deceleration over a given time period. But in the investing world, it basically refers to the idea that rising or declining prices build up steam and will continue a stock’s movement in a given direction.

Based on this, momentum stocks could go either way, improving or declining. However, for the purposes of this article, I will focus on names that are improving.  So, that in mind, let’s jump into a bunch of stocks that have the capacity to continue their recent upward ascents.

  • Gamestop (NYSE:GME
  • Moderna (NASDAQ:MRNA
  • Netflix (NASDAQ:NFLX
  • Albemarle (NYSE:ALB)
  • Apple (NASDAQ:AAPL)
  • Duke Realty (NYSE:DRE
  • Baker Hughes (NYSE:BKR

Momentum Stocks to Buy: Gamestop (GME) 

Source: Emil O / Shutterstock.com

Depending on the time frame from which you view it, Gamestop is one of the top momentum stocks to show little sign of slowing. While GME stock has slid about 13% over the last three months, the bigger picture indicates that it still has the capacity to move upward for a long period of time. 

Of course, GME has been nothing if not volatile so far in 2021. However, it has appreciated in price overall. Year-to-date (YTD), the stock has proven itself to be the proverbial 10-bagger, rising almost 1,000%. And over the past month? It’s up 25%. 

In any case, as long as Reddit users and other retail investors continue to take interest in Gamestop, the momentum should carry on. That’s especially likely as Gamestop has become something of a symbol of defiance against Wall Street’s powers that be. 

To me, there’s also a clear shift going on here at InvestorPlace in regards to GME stock. A few months ago, it was clear most of my colleagues (as well as myself) were judging Gamestop on its weak fundamentals alone. Most headlines warned against buying the hype. But, over the last few weeks, that has changed.

The broader symbolism of GME should bolster it moving forward — despite even the fundamental issues that underpin this equity. 

Moderna (MRNA) 

The Moderna (MRNA) logo surrounded by syringes, pills and disposable face masks.Source: Ascannio / Shutterstock.com

Next up, I really like Moderna as a momentum pick. The last time I wrote about momentum stocks was in July. I led off that article with MRNA stock because I thought it had great prospects to continue its upward momentum. 

Luckily, I was right. Since that article, MRNA has run up from $307 to nearly $420 as of the close of Sept. 13. Now, there’s little to suggest that the stock won’t blow past the current high analyst price of $485.

The catalysts surrounding Moderna are fairly straightforward: the company offers one of three Covid-19 vaccines with Emergency Use Approval (EUA) from the U.S. Food and Drug Administration (FDA). Plus, it recently received further utility when the FDA amended that approval “to allow for an additional dose to be given to certain immunocompromised individuals.”

Although this company is anticipated to see revenues remain flat in 2022, things could very well change. The current situation with the pandemic has become worse, which favors Moderna. What’s more, the company is planning to announce a two-in-one Covid-19 and flu vaccine. Lastly, there’s the possibility of extensive vaccine mandates.

Sure, the unvaccinated are unlikely to change their position. But if mandates do take effect, MRNA stock should rise as well. 

Momentum Stocks to Buy: Netflix (NFLX) 

the netflix logo displayed on a tablet that a person is holding while laying downSource: Kaspars Grinvalds / Shutterstock.com

Netflix has been red hot over the last three months. In that period, this pick of the momentum stocks has appreciated in price by nearly 100%. NFLX is the streaming service pioneer that continues to log quarter after quarter of strong earnings. In its second quarter, Netflix reported $7.3 billion in revenues, representing 19.4% year-over-year (YOY) growth. Moreover, revenues are anticipated to hit nearly $7.5 billion in Q3. 

Netflix may be maturing to a degree, but it is still useful to look back and appreciate how much it has grown over the past five years. Netflix has witnessed astounding average growth rates (measured at fiscal year end over that five-year span). For example, revenue has grown at 36.6% annually, net income at 275.8% and earnings per share (EPS) at 265.7%. 

Investors shouldn’t expect those kinds of numbers to continue by any means. In fact, revenue is expected to hit just $34 billion in 2022 and $29.61 billion this year. But the thrust is that Netflix has very much succeeded as a business, getting countless viewers to unplug from cable altogether. 

Few analysts are betting against NFLX stock right now. There’s plenty of upside, with a high analyst target price approaching $1,000. 

Albemarle (ALB)

Albemarle (ALB) logo on a mobile phone screenSource: IgorGolovniov/Shutterstock.com

Albemarle has been mentioned throughout 2021 as a stock to watch based on its leading position as a chemical specialist in both lithium and bromine. In fact, for quite some time, pundits have been speculating that ALB stock should get a boost due to lithium’s importance in batteries for the electric vehicle (EV) sector.

To that end, ALB stock certainly has taken off, especially in the past three months, rising nearly 37% as of this writing. The company’s recent investor day presentation also highlighted lithium’s importance in “enabling the EV revolution.” Plus, bromine plays a similarly important role in “providing critical materials for electrification and digitization.”

This company is expecting sustained growth through at least 2026 according to that same presentation (Page 7). It anticipates hitting $6 billion to $7 billion in revenue by 2026, more than doubling from 2021 levels. Albemarle also expects to more than triple both EBITDA and cash from operations within that same time frame.

Lastly, though, Albemarle is on track with its five-year revenue growth rate expectation of 12% to 17% for lithium revenues (Page 14). It is very difficult to bet against this pick of the momentum stocks in the context of broader EV growth. 

Momentum Stocks to Buy: Apple (AAPL) 

An Apple (AAPL) MacBook Air laptop sitting under bright purple lights.Source: WeDesing / Shutterstock.com

Apple was due for a breakout several times this year. The company posted record quarterly results in each of its three quarterly reports. Apple also continuously broke revenue records in each of those successive quarters but was plagued by flat market sentiment until it reached an inflection point in June. 

Since then, AAPL stock has risen to levels around $150. And, with the company set to release a new generation of iPhones next week, there’s little reason to expect things to slow. According to Barron’s, Morgan Stanley’s Katy Huberty “expects the fall to be a busy period for Apple product launches.” Specifically, Huberty believes next week’s event will focus on the new Apple Watch, iPhone and possibly the new AirPods.

That’ll almost certainly mean that this pick of the momentum stocks will rise along with revenues. Time has shown that consumers love Apple’s products, so this fall should be no different. Plus, Apple is less the target of a big tech breakup these days and more a company that breaks records quarter in and quarter out. 

Duke Realty (DRE) 

IVR stock Real estate investment trust (REIT) on a black notebook on an office desk.Source: Shutterstock

Next up on this list of momentum stocks, Duke Realty is an industrial-office real estate investment trust (REIT) that has risen about 27% YTD, from $38 at the beginning of January to about $51 currently. Duke focuses on logistics real estate and owns and manages warehouses and distribution facilities in a number of U.S. markets. 

For one, logistics real estate demand was heightened by the pandemic, which serves Duke Realty well. DRE also notes that rent growth is expected to range between 4% to 10% in its markets (Page 13).

Currently, Amazon (NASDAQ:AMZN) is Duke’s biggest tenant, occupying 9.1% of its net lease value. This name serves companies across industries, but 39% of its tenants operate within transportation and e-commerce.  

Duke Realty’s assets are skewed toward larger logistics properties. It operates 83 properties with footprints greater than 500,000 square feet. Those properties contribute the greatest amount to its net operating income (NOI), at 37%. The average footprint in Duke’s sector is also 294,000 square feet.

This company has experienced rapid growth in rents in its top six geographies over the past three years at 34%. It’s biggest market is southern California, followed by Chicago and south Florida. With ports snarled and real estate markets as hot as ever, momentum is definitely on DRE stock’s side.

Momentum Stocks to Buy: Baker Hughes (BKR) 

Image of an oil wells with an orange-red sky at duskSource: Shutterstock

Last up on this list of momentum stocks, Baker Hughes is an oil company with a diverse range of services and products. The company sells oilfield services, digital services and various equipment and machinery

BKR stock is volatile but it has been moving upward of late. Prices have fluctuated between $20 and $25 throughout 2021. Now, analysts expect BKR to reach an average price target of $28.24.

Although Baker Hughes has fluctuated throughout the year, it is fairly steady from a fundamental perspective. When the company last reported earnings on Jul. 21, shares were just below $20. However, earnings were strong; the company delivered revenues of $5.1 billion. For the quarter, the company’s EBITDA also increased by 38% YOY. 

That kicked off an upward trend for BKR stock, which maintains an overwhelming Buy rating. The company is slated for continued top-line growth, with revenues expected to reach $22.5 billion in 2022. Plus, this name’s rock solid dividend hasn’t been reduced since 2017 and yields 2.95%. That should ease volatility concerns. 

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

Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.

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Fe Ltd farms into advanced copper-gold asset, eyes near term production

Special Report: Fe Limited will secure the controlling interest in a mature NT copper-gold project, with the initial focus to … Read More
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Fe Limited will secure the controlling interest in a mature NT copper-gold project, with the initial focus to be an “early cashflow opportunity” at the ‘Orlando’ open pit.

Fe Limited (ASX: FEL) has inked a binding deal to acquire a 60% interest in the exploration assets of Gecko Mining Company (GMC) in the highly prospective Tennant Creek region of the Northern Territory in a cash and share deal.

FEL will also pay the first $10m of JV expenses incurred.

This package covers ~ 240 km2 in the highly prospective, high-grade Gecko – Goanna copper gold corridor which has historically produced more than 5.5 million ounces of gold @19.3 g/t and 488kt copper at 2.9%.

The Tennant Creek project is composed of three high grade copper and gold mineral resources — Orlando, Gecko and Goanna –historically defined under the JORC 2004 code.

While these numbers will have to be verified to bump it up to JORC 2012 standard, in FEL’s view there is no reason the existing historic resource estimates – totalling 122,000t copper and 145,000oz gold – would not be reliable.

Near term copper gold production

Potential for near term production exists from a cut back of the Orlando pit prior to underground development, initially at Orlando, followed by the Gecko and Goanna underground projects.

There are several options available for third party processing, the company says, which would lower initial capex costs.

Importantly, previous internal conceptual studies have shown positive economics based on lower pricing assumptions to current assumed commodity spot prices.

In the current and forecast pricing environment with commodity prices firming considerably since those studies, the company believes the Tennant Creek project offers a significant opportunity to enter the battery and precious metals space.

Big exploration upside

These initial resources are just the start.

Several advanced copper-gold targets have already been identified within the mineralised Gecko – Goanna corridor, in addition to down dip and along strike extensions to existing resources.

The figure below shows the Gecko – Goanna corridor with unmined targets against mined ore bodies:

FEL anticipates additional drilling will be required along strike and down dip to validate the existing data as well as define the extent of mineralisation prior to estimation.

FEL intends to conduct this follow up drilling after assessment and development (if applicable) of early production operations at Orlando for cash flow generation in the short term.

“Mature copper / gold assets are hard to find in today’s market given the attractive thematic for those commodities, particularly for copper with its connection into the battery metals space,” FEL exec chairman Tony Sage says.

“The work that’s been done by since on the GMC ground since the project was acquired from Evolution Mining Ltd in 2020 has identified some interesting opportunities for us to evaluate with the potential to fast-track production.

“We are pleased to identify this opportunity to diversify our commodity exposure to supplement our high-grade iron ore at Wiluna and our other NT iron ore project Yarram, which is located just over 100km from Darwin port, which presents the opportunity for it to host a low-cost operation.”


 

 

This article was developed in collaboration with Fe Ltd, a Stockhead advertiser at the time of publishing.

 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

The post Fe Ltd farms into advanced copper-gold asset, eyes near term production appeared first on Stockhead.

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Drilling kicks off and uranium analysis planned at Benmara battery metals project

Special Report: Resolution Minerals has started drilling at its Benmara battery metals project in the Northern Territory. … Read More
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Resolution Minerals has started drilling at its Benmara battery metals project in the Northern Territory.

The 2,500m RC drilling program is focused on the highest priority targets of 4km and 2km strike length derived from a VTEM survey – and new Geoscience Australia research which identified prospective rock types previously mis-mapped.

The large-scale targets are prospective for sediment hosted battery metals including copper, silver, lead, zinc, and cobalt.

Plus, the targets are on the margin of the South Nicholson Basin and Murphy Inlier on the Fish River fault which is analogous and along strike from Aeon Metal’s (ASX:AML) polymetallic Walford Creek deposits (40 million tonnes at 2% copper equivalent).

It presents the company with strong exposure to the strengthening demand for battery metals – and a tightening market for copper.

And because the targets have no prior drilling, Resolution Minerals (ASX:RML) is confident this underpins the potential to rerate on any discovery made.

 

Fully funded to ramp up exploration

Resolution is fully funded to complete the drilling with existing cash following a recent $1.7 million placement.

“We are very excited to announce drilling has started on our maiden drill program at the under-explored Benmara Battery Metals Project in the Northern Territory,” managing director Duncan Chessell said.

“The program follows up large scale targets derived from our recent VTEM geophysics survey for sediment hosted stratiform copper and other battery metals.

“With virtually no prior drilling conducted into these large-scale targets, we look forward to the results of this exciting opportunity and accelerating exploration.”

The drilling will take three weeks to complete, with assays expected in early November.

Pic: The company holds the Wollogorang and Benmara copper-cobalt-uranium projects in the NT, which includes the Stanton cobalt deposit.

Assessing uranium upside off the back of strong prices

The area surrounding Benmara is also highly prospective for uranium, with the 51.9-million-pound Westmoreland Uranium deposit nearby.

Additional uranium occurrences have also been mapped within 2km of the Benmara tenement boundaries.

And with rising uranium spot prices close to US$50/lb – a nine-year high – it puts the company in a good position to assess the uranium potential of the project.

 

Wollogorang project potential

Then there’s the company’s Wollogorang project in the McArthur Basin in the NT, which is prospective for sedimentary hosted battery metals: copper, cobalt, and hard rock uranium.

There’s proven mineralisation within the Stanton cobalt deposit of 942,000 tonnes at 0.13% cobalt, 0.06% nickel, 0.12% copper.

And a VTEM survey highlighted the sediment hosted copper potential, identifying 40 conductors.

Plus, drill targets at the Gregjo copper prospect are set to test a chargeable IP geophysical anomaly underlying copper mineralisation intersected in shallow RAB drilling of up to 4% copper.

The project is subject to a $5 million farm-in agreement with OZ Minerals (ASX:OZL) to earn 51% interest, after which the company can retain 49% by participating.

Or at Resolution’s election, OZ has the option to earn 75% interest by sole funding to a final positive decision to mine, with Resolution appointed as operator.

 

 

Resolution Minerals share price today:


This article was developed in collaboration with Fresh Equities, a Stockhead advertiser at the time of publishing.

 This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

 

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Bryah nabs strategic exploration ground around namesake project

Special Report: Bryah Resources has expanded its footprint in WA, securing three exploration licences covering 50 km2 around its existing … Read More
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Bryah Resources has expanded its footprint in WA, securing three exploration licences covering 50 km2 around its existing land holding in the Bryah and Padbury Basins.

The Bryah Basin hosts the high-grade copper-gold mines at DeGrussa, discovered by Sandfire Resources (ASX:SFR) in 2009, and at Horseshoe Lights, which was mined until 1994.

It also hosts several historical and current manganese mines including the company’s Horseshoe South mine.

Bryah Resources’ (ASX:BYH) is confident that the new tenements – E52/3848, E52/3898 and E52/3963 – cover prospective and under-explored areas which have gold, copper-gold and manganese exploration potential.

The tenements were acquired for 4 million ordinary shares at an issue price of $0.055/share.

Tenure right next to historic gold mine

The largest tenement (E52/3898) covers exploration ground adjacent to the historic Wilthorpe shallow open cut gold mine.

The mine straddles the boundary of new tenement E52/3898 and an adjacent E52/2059, held by Westgold Resources (ASX:WGX).

It was mined by Dominion Mining from 1993-94, producing 4,650 ounces of gold from 72,817 tonnes of ore grading 2.0 g/t gold.

And there has been limited gold exploration since.

Based on the reported mineral occurrences, Bryah considers the tenement package highly prospective for copper, gold, and manganese.

Pic: Tenement location plan

Exploration planning underway

The company will shortly commence a thorough desktop review of all historical exploration reports as well as its own extensive database.

The data review will support a detailed phase of exploration planning, ahead of ground exploration activities.

In the meantime, reverse circulation drilling is underway at Bryah’s manganese JV, in a 2000m program fully funded by partner OM Holdings.

 


 

 

This article was developed in collaboration with Bryah Resources, a Stockhead advertiser at the time of publishing.

 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

 

The post Bryah nabs strategic exploration ground around namesake project appeared first on Stockhead.

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