Key Takeaways Fed cut rates by 25 bps to 4-4.25%, its first reduction since Dec 2024, with two more cuts expected in 2025.Global commercial insurance rates fell 4% in Q2 2025. Heavy investments in blockchain, telematics, and insurtech boost efficiency and long-term profitability. The Zacks Property and Casualty Insurance industry is placed within the top 17% of the 245 Zacks industries. It currently carries a Zack Industry Rank #42. The insurers remain well-poised for growth, riding on better pricing, prude ...

Market Overview - The U.S. equity markets have experienced a steady downtrend due to escalating tensions in the Middle East, particularly following U.S. attacks on Iranian nuclear sites and Iran's retaliatory missile strikes against Israel [1] - The geopolitical tensions have raised concerns about their potential impact on the oil and gas industry, leading investors to seek safe-haven assets [1] Federal Reserve and Investment Strategies - Federal Reserve Chairman Jerome Powell indicated a cautious approach regarding rate cuts, awaiting more clarity on the effects of President Trump's tariffs on inflation [2] - In light of market uncertainties, investors are turning to momentum stocks as a strategy to achieve sustained profits, particularly when traditional value or growth investing fails [2][3] Momentum Investing - Momentum investing is characterized by the strategy of "buying high and selling higher," based on the belief that established trends are likely to continue [3] - This investment approach capitalizes on the human tendency to project current trends into the future before mean reversion occurs [3] Screening Parameters for Momentum Stocks - The screening process for momentum stocks involves selecting the top 50 stocks with the best percentage price change over the last 52 weeks, ensuring steady appreciation [5] - From these, the bottom 10 performers over the past week are chosen to identify those experiencing a short-term pullback [6] - Stocks with a Zacks Rank 1 (Strong Buy) are included, as they have a history of outperformance regardless of market conditions [6] - A Momentum Style Score of B or better is also a criterion, indicating favorable timing for stock acquisition [7] - Additional parameters include a minimum stock price of $5, a market capitalization within the top 3000, and an average 20-day trading volume exceeding 100,000 [8] Featured Momentum Stocks - **Palomar Holdings, Inc. (PLMR)**: The stock has surged 99.2% over the past year but declined 3.3% in the past week, with a Momentum Score of B [9] - **Franco-Nevada Corporation (FNV)**: This gold-focused royalty and stream firm has rallied 42.1% in the past year but lost 3.5% in the past week, holding a Momentum Score of A [10] - **Paycom Software, Inc. (PAYC)**: The cloud-based HCM provider has seen a 57.5% increase in stock price over the past year, with a recent decline of 5.2% in the past week, and a Momentum Score of A [11]