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Top-Ranked Momentum Stocks to Buy in July
ZACKSยท 2025-07-08 20:30
Market Overview - The stock market experienced a dip at the beginning of July due to renewed trade war concerns, which contrasts with previous months of positive tariff negotiation progress between the U.S. and key trading partners like China [1][2] - Despite trade war uncertainties, historical trends show that the S&P 500 has typically climbed in July over the past decade, supported by a solid earnings outlook driven by AI and technology [3] Investment Strategy - A screening method has been introduced to help investors identify stocks that are trading near their 52-week highs and have shown strong upward earnings revisions, categorized as Zacks Rank 1 (Strong Buys) [4][5] - The screening process narrows down Zacks Rank 1 stocks to those with upward price momentum within 20% of their 52-week highs, utilizing PEG and Price to Sales ratios to ensure value [6][8] Company Spotlight: Affiliated Managers Group (AMG) - Affiliated Managers Group, Inc. (AMG) is highlighted as a strong investment opportunity, being a global asset management company that partners with independent investment firms [7][9] - AMG has outperformed the market significantly, with a 32% stock price increase over the past year compared to the Financial-Investment Management industry's 23% [12][13] - The company is projected to grow adjusted earnings by 8% and 13% for 2025 and 2026, respectively, following a strong first quarter that boosted its Zacks Rank [12][13] - AMG's stock has shown a remarkable 195% increase over the last five years, nearly tripling its industry performance, and has outpaced the S&P 500 by 540% over the past 25 years [13][15]