The S&P 500 index is expected to reach 7,000 by 2025, driven by US economic growth and a strong labor market. To capitalize on this trend, investors can use Richard Driehaus’ strategy of buying momentum stocks with high earnings growth rates.
Stocks like NVIDIA Corp. and Vistra Corp. are among the top picks for investors looking to ride the S&P 500’s upward trajectory. Both companies have seen significant earnings surprises in recent quarters, with NVIDIA averaging a 9.8% surprise and Vistra averaging a 7.1% surprise.
Driehaus’ strategy focuses on buying stocks that are increasing in price and taking the risk that they may begin to decline. The American Association of Individual Investors (AAII) uses this strategy as a basis for its stock selections, looking for strong earnings growth rates and impressive earnings projections.
Investors can use the Zacks Research Wizard Tool to find other momentum stocks like NVIDIA and Vistra. With a free trial available, investors can start using this screen in their own trading and create their own strategies before taking the investment plunge.
As the S&P 500 aims for 7,000 by 2025, investors should consider the momentum stocks of top companies like NVIDIA and Vistra to stay ahead of the market’s upward trend.
Source: https://finance.yahoo.com/news/zacks-com-featured-highlights-wells-100000442.html