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The Best Momentum Stocks to Buy for November
ZACKSยท 2025-10-28 20:51
Core Insights - Wall Street has begun a significant earnings week, with the stock market reaching new all-time highs, prompting discussions on investment strategies in a strong bull market [1][2] Group 1: Market Overview - The stock market is experiencing a rally, with some investors hesitant to buy at new highs, potentially missing out on opportunities [1] - Approximately 200 stocks in the S&P 500 are down year-to-date, indicating not all stocks are participating in the rally [2] Group 2: Investment Strategy - Investors are encouraged to consider buying stocks that are climbing, particularly those with strong upward earnings revisions, categorized as Zacks Rank 1 (Strong Buys) [2][3] - A screening method has been developed to identify top momentum stocks, focusing on those within 20% of their 52-week highs and ensuring value through PEG and Price to Sales ratios [4][8] Group 3: Company Spotlight - Universal Health Services (UHS) - Universal Health Services, Inc. is highlighted as a strong buy, being one of the largest providers of hospital and healthcare services in the U.S. [5][6] - UHS has shown steady growth, with a significant Q3 report indicating upward earnings revisions, earning it a Zacks Rank 1 [9] - The company is projected to grow adjusted earnings per share (EPS) by 24% in 2025 and 7% in the following year, following a 50% growth in 2025 [10] - UHS stock has increased by 21% in 2025 and 90% over the past three years, outperforming its industry [13] - The stock trades at a 15% discount to its industry and 52% below its average Zacks price target, suggesting further growth potential [14]