How to Buy the Best Momentum Stocks Now

Core Insights - The stock market has rebounded from its April lows, reaching multiple all-time highs, which may cause investor hesitation in buying stocks or ETFs at these peaks [1] - Historical data indicates that strength in the stock market often leads to further gains, with the S&P 500 averaging a 12-month price return of 9.1% after reaching an all-time high [2] - Not all stocks have participated in the recent rally, with approximately 200 S&P 500 stocks showing negative performance in 2025 [2] Stock Selection Strategy - Investors are encouraged to buy stocks that are also reaching new highs, particularly those with strong upward earnings revisions, earning a Zacks Rank 1 (Strong Buy) [3] - A momentum stock screen is utilized to identify Zacks Rank 1 stocks that are trading within 20% of their 52-week highs, ensuring value through PEG and Price to Sales ratios [5][8] Featured Stock: Modine (MOD) - Modine is highlighted as a strong investment opportunity, benefiting from trends in AI and data centers, with a stock price increase of 750% over the past three years [6][7] - The company has shown significant revenue growth, with projections of over 11% sales growth in FY26 and 14% in FY27, reaching $3.28 billion [10] - Modine's earnings estimates have increased by 8% since its last earnings release, with projected earnings growth of 14% this year and 31% next year [10] - The stock is currently trading 11% below its average Zacks price target and has completed a bullish golden cross, indicating positive technical momentum [14]