In this article, we will look at the 10 Best Momentum Stocks to Buy According to Analysts.
On May 22, Steve Sosnick, from Interactive Brokers, appeared on CNBC’s ‘Power Lunch’ to talk about what is driving the record market moves. Talking about why the market is going high despite the current market dynamics, he said that this is an everything rally, and one of the things that is a hallmark of it is not only the fact that the semis are up 70% in six weeks, which in itself is crazy enough, but rather about what he calls the ratchet effect of the peace dividend. The market is telling us today that they are more concerned about missing some sort of peace in the Middle East than they are about the risks of going home over a three-day weekend.
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Sosnick also called for us to think about how we have reacted to any positive news, no matter how remote, about any sort of development in the Middle East that might bring a resolution to this situation. We all want that, but we go up when it is touted, and we do nothing when it doesn’t come out. That, to him, is the ratchet effect.
With these broader market trends in view, let’s look at the best momentum stocks to buy according to analysts.
Our Methodology
We used stock screeners and online sources to identify the stocks with a minimum year-to-date share price return of 20%, which represents strong growth momentum. We then identified some of the best stocks that analysts are bullish on and that have the highest hedge fund ownership by leveraging data from Insider Monkey’s Q4 2025 hedge fund database. The stocks are arranged in ascending order of analyst upside.
Note: All data was recorded on May 25.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
10 Best Momentum Stocks to Buy According to Analysts
10. Legence Corp. (NASDAQ:LGN)
Analyst Upside: 29.32%
Legence Corp. (NASDAQ:LGN) is one of the best momentum stocks to buy according to analysts. Legence Corp. (NASDAQ:LGN) has received several rating updates following the release of financial results for its fiscal Q1. On May 19, Tigress Financial lifted the price target on the stock to $125 from $85 while maintaining a Buy rating on the shares. The firm cited the company’s “accelerating growth runway” for the target boost, further telling investors in a research note that Legence Corp.’s (NASDAQ:LGN) growth is being produced by a “powerful combination of explosive near-term execution and long-duration, contractually supported demand across structurally advantaged end markets”.
Legence Corp. (NASDAQ:LGN) also received a rating update from BMO Capital on May 15, with the firm lifting the price target on the stock to $100 from $63 and maintaining an Outperform rating on the shares. It told investors in a research note that the stock remains an attractive option for investors who are looking to gain exposure to the AI infrastructure/data center build-out. The firm also believes that Legence Corp.’s (NASDAQ:LGN) organic growth is accelerating, the business has considerable flexibility to augment growth through M&A, and there is upside to margins/profitability.
Legence Corp. (NASDAQ:LGN) is involved in consultation, engineering, installation, and maintenance services for mission-critical systems in buildings. The company’s operations are divided into the Engineering & Consulting and Installation & Maintenance segments.
9. Darling Ingredients Inc. (NYSE:DAR)
Analyst Upside: 30.55%
Darling Ingredients Inc. (NYSE:DAR) is one of the best momentum stocks to buy according to analysts. BofA lifted the price target on Darling Ingredients Inc. (NYSE:DAR) to $85 from $80 on May 12, maintaining a Buy rating on the shares. The rating update came after the company’s “multifaceted update on capital allocation and the balance sheet” at its investor day meeting, with the firm telling investors that details on the path to structurally higher margins via high-grading output “look solid and the gains are material”.
For reference, in its financial results for fiscal Q1 2026, Darling Ingredients Inc. (NYSE:DAR) reported net income of $134.3 million, or $0.83 per GAAP diluted share, compared to a net loss of $(26.2) million, or $(0.16) per GAAP diluted share for fiscal Q1 2025. Total net sales for the quarter came up to $1.6 billion, compared to $1.4 billion for fiscal Q1 2025, while the combined adjusted EBITDA was $406.8 million compared to $195.8 million in the prior year period.
Darling Ingredients Inc. (NYSE:DAR) develops and produces natural ingredients from edible and inedible bio-nutrients. The company’s operations are divided into the following segments: Feed Ingredients, Food Ingredients, and Fuel Ingredients.
