In this article, we will take a look at the 10 Best Momentum Stocks to Buy Right Now.
As the Nasdaq composite added 50.36 points and the S&P 500 increased 25.29 points to end a robust week on July 25, companies are under pressure to provide substantial profit growth to support significant gains for their stock values, which have risen to record highs in recent weeks. In addition, Wall Street has soared higher on the hope that President Donald Trump will negotiate trade agreements with other nations that will reduce his intended tariffs, despite the possibility that they could trigger a recession and raise inflation.
However, some in the financial space are signaling alarm bells for the market. Albert Edwards of Société Générale, who is well-known for predicting the dot-com bubble that preceded the 2000 crash, is cautioning investors once more about an impending decline.
Edwards claims that the “everything bubble” that is currently engulfing US stocks and housing values may soon burst. Given that long-term interest rates have been rising, Edwards finds this to be problematic. Rising long-end government bond yields typically have an impact on stock market prices since investors may uncover appealing returns without taking on a high amount of risk in the stock market.
That said, US stocks have experienced a strong recent rally, rising 78% from their October 2022 lows. The market’s high valuations have kept future projected equity-market yields low.
Edwards advised keeping an eye on Japan to determine what would trigger the possible bursts in US stock and real estate bubbles. He issued a warning as early as May that Japan’s rising interest rates might trigger a “global financial Armageddon.”
Our Methodology
For this list, we began by using online stock screeners to find companies with a minimum year-to-date share price return of 20%, which represents strong growth momentum. We then identified some of the best stocks with the highest hedge fund ownership from this list by leveraging data from Insider Monkey’s Q1 2025 hedge fund database.
Note: The data was recorded on July 24.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. Strategy Incorporated (NASDAQ:MSTR)
Year-to-Date Performance: 42.09%
Number of Hedge Fund Holders: 33
MicroStrategy Incorporated (NASDAQ:MSTR) ranks among the best momentum stocks to buy. While maintaining a Buy rating on the company’s shares, TD Cowen increased its price target for MicroStrategy Incorporated (NASDAQ:MSTR) from $590 to $680 on July 14. According to the firm, Strategy is unique in the market since it is the largest corporate bitcoin holder in the world.
TD Cowen pointed out that MicroStrategy Incorporated (NASDAQ:MSTR) is the only company providing a broad selection of bitcoin-backed securities tailored to various institutional investor classes.
Moreover, the firm contends that competitors may try to imitate Strategy’s strategy or create their own solutions, but none of them are likely to be able to match or surpass the company’s cost of capital advantage.
MicroStrategy Incorporated (NASDAQ:MSTR), also known as Strategy, is an American development company that offers cloud-based services, mobile software, and business intelligence. Operating in technology, financial markets, and advocacy, the company contributes to the growth of the Bitcoin network.
9. Howmet Aerospace Inc. (NYSE:HWM)
Year-to-Date Performance: 69.54%
Number of Hedge Fund Holders: 56
Howmet Aerospace Inc. (NYSE:HWM) ranks among the best momentum stocks to buy. On July 21, Jefferies increased its price target for Howmet Aerospace Inc. (NYSE:HWM) from $210 to $220 while keeping the company’s shares at a Buy rating. The change comes after Jefferies researches the aerospace fastener market following the closure of Precision Castparts Corp.’s (PCC) Jenkintown factory, which eliminated around 10% of the $4 billion market’s annual aerospace and defense fastener capacity.
The Jenkintown fire caused fastener activity, which was at 109% of January 2023 levels before the fire, to drop to 100% in June 2025. That said, overall market activity increased by 2% ($94 million annualized), excluding the Jenkintown plant.
In June, PCP’s operations outside of Jenkintown increased by 2% over pre-fire levels, while Howmet Aerospace Inc. (NYSE:HWM) performed somewhat better, increasing by 3%.
Howmet Aerospace Inc. (NYSE:HWM) is a U.S. aerospace company that creates vital solutions for the transportation, defense, and aerospace industries. Its varied offering includes forged wheels, technical structures, fastening systems, and engine components.
8. The Goldman Sachs Group, Inc. (NYSE:GS)
Year-to-Date Performance: 22.79%
Number of Hedge Fund Holders: 77
The Goldman Sachs Group, Inc. (NYSE:GS) ranks among the best momentum stocks to buy. On July 17, Morgan Stanley kept its Equalweight rating on The Goldman Sachs Group, Inc. (NYSE:GS) shares and increased its price target from $680 to $706. The price target’s 4% increase is in line with Morgan Stanley’s most recent forecasts for Goldman Sachs’ performance going forward, especially in 2026.
Citing projections for greater Markets revenues, improved Asset & Wealth Management revenues, a reduced share count, and somewhat higher Investment Banking revenues, Morgan Stanley has lifted its 2026 earnings per share estimate by 4% to $54.33. These perks are partially offset by higher projected expenses.
The new price target, which is in line with Morgan Stanley’s prior valuation approach for The Goldman Sachs Group, Inc. (NYSE:GS), applies a 13x target 2026 price-to-earnings multiple.
A globally recognized bank, The Goldman Sachs Group, Inc. (NYSE:GS) provides investment banking, securities, and asset management services. The company is well-known for its solid reputation and proficiency in trading, underwriting, and merger and acquisition advising services.
7. Palantir Technologies Inc. (NASDAQ:PLTR)
Year-to-Date Performance: 101.88%
Number of Hedge Fund Holders: 77
Palantir Technologies Inc. (NASDAQ:PLTR) ranks among the best momentum stocks to buy. Palantir Technologies Inc. (NASDAQ:PLTR) was awarded a $100 million contract by the U.S. Army to the Anduril-Palantir collaboration for the Next-Generation Command and Control (NGC2).
Announced on July 21, the 11-month contract tasks the companies to develop the next phase of NGC2, one of the top-priority projects for the U.S. Army. The contract is considered a major victory for both companies, and Palantir Technologies Inc. (NASDAQ:PLTR) will likely choose to integrate its Edge Data Mesh and Maven Smart System into NGC2.
Palantir Technologies Inc. (NASDAQ:PLTR) will receive $30 million of the total contract value, according to William Blair, with the possibility of growing that amount to exceed $150 million in annual recurring revenue over the next three years.
Palantir Technologies Inc. (NASDAQ:PLTR) is a software and data analytics company that develops platforms for large corporations, financial institutions, and government organizations to analyze massive amounts of data.
6. TransDigm Group Incorporated (NYSE:TDG)
Year-to-Date Performance: 26.28%
Number of Hedge Fund Holders: 78
TransDigm Group Incorporated (NYSE:TDG) ranks among the best momentum stocks to buy. On July 2, KeyBanc maintained its Overweight rating on TransDigm Group Incorporated (NYSE:TDG), while increasing its price objective on the aerospace components manufacturer from $1,500 to $1,700. The price target increase is in line with KeyBanc’s survey-based evidence of a more robust aftermarket environment and rising demand for defense products worldwide.
The firm’s underlying estimates show robust year-over-year growth, according to KeyBanc analyst Michael Leshock, emphasizing TransDigm’s capacity to profit from the continuation of a strict maintenance, repair, and operations (MRO) environment. KeyBanc believes there are chances for further price adjustments as a result of the strict MRO conditions.
Founded in 1993 as a result of the leveraged buyout of four industrial aerospace companies, TransDigm Group Incorporated (NYSE:TDG) is an aerospace manufacturing corporation that operates through three primary business sectors: Power & Control, Airframe, and Non-aviation. The company specializes in the development and manufacturing of engineered aircraft components.
5. RTX Corporation (NYSE:RTX)
Year-to-Date Performance: 30.64%
Number of Hedge Fund Holders: 79
RTX Corporation (NYSE:RTX) ranks among the best momentum stocks to buy. Jefferies reaffirmed its Hold rating and $160 price target for RTX Corporation (NYSE:RTX) on July 21 in response to MTU’s Paris Air Show updates.
MTU increased its revenue forecast for 2025 from low teens to mid-teens growth, with EBIT margins expected to increase by about 100 basis points. While RTX Corporation (NYSE:RTX) retains a long-term mid-teens margin target reliant on OEM pricing and restructured GTF long-term agreement contracts, MTU wants to reduce its margins from 15.4% to 14.5–15.5% by 2030.
In addition, RTX Corporation (NYSE:RTX) subsidiary Raytheon recently won a $74 million contract to manufacture RAM Guided Missile Launching Systems for the U.S. Navy. The largest single order of RAM launchers placed in the United States in more than 20 years, the contract includes new launcher systems and the restoration of old ones.
RTX Corporation (NYSE:RTX) offers services and technologies to government, military, and commercial customers. The company operates through three main divisions: Collins Aerospace, Pratt & Whitney, and Raytheon.
4. GE Aerospace (NYSE:GE)
Year-to-Date Performance: 55.92%
Number of Hedge Fund Holders: 104
GE Aerospace (NYSE:GE) ranks among the best momentum stocks to buy. On July 18, UBS increased its price target for GE Aerospace (NYSE:GE) from $300 to $321, while keeping the stock’s Buy rating. The firm stated that GE’s dominant market position, robust execution, and strong end market demand were the main drivers of the higher valuation.
According to UBS, GE Aerospace (NYSE:GE) raised its guidance for both 2025 and 2028, although the updated projections still adhere to the company’s generally cautious stance. The firm highlighted several conservative aspects of GE’s 2028 projection, including low single-digit price hikes and retirement rates for CFM56 engines at 3-4% as opposed to 1.5% in 2025.
Despite the initial performance of the LEAP engines, UBS also pointed out that GE’s Commercial Engine Services (CES) margin expectations were flat. Nonetheless, the firm believes that there is still an opportunity for improvement in these cautious projections.
The aerospace spin-off of the General Electric conglomerate, GE Aerospace (NYSE:GE) specializes in manufacturing jet engines and propulsion systems for a variety of aircraft, including private planes, military jets, and commercial airliners.
3. GE Vernova Inc. (NYSE:GEV)
Year-to-Date Performance: 66.96%
Number of Hedge Fund Holders: 111
GE Vernova Inc. (NYSE:GEV) ranks among the best momentum stocks to buy. BofA Securities kept its buy rating on GE Vernova Inc. (NYSE:GEV) and increased its price target from $550 to $620 on July 17. With a projected total of $11.8 billion ($5 billion in wind, $4.9 billion in electrification, and $5.8 billion in power), the firm predicts that GE Vernova Inc. (NYSE:GEV) will report solid second-quarter orders.
In comparison to 7GW in the first quarter of 2025, 6GW in the fourth quarter of 2024, 5GW in the third quarter of 2024, and 4GW in the second quarter of 2024, BofA Securities anticipates GE Vernova Inc. (NYSE:GEV) to receive 6 GW of orders for gas power turbines in the second quarter.
The firm also projects GE Vernova’s second-quarter 2025 adjusted EBITDA to be $0.7 billion, in line with consensus projections.
With a focus on power generation, grid solutions, and electrification, GE Vernova Inc. (NYSE:GEV) produces and provides technologies and services for the energy sector.
2. JPMorgan Chase & Co. (NYSE:JPM)
Year-to-Date Performance: 21.24%
Number of Hedge Fund Holders: 129
JPMorgan Chase & Co. (NYSE:JPM) ranks among the best momentum stocks to buy. On July 16, Keefe, Bruyette & Woods maintained its Outperform rating on JPMorgan Chase & Co. (NYSE:JPM) but increased its price target from $327 to $330. The price target adjustment was came in light of JPMorgan’s second-quarter 2025 results, which showed a 21% return on tangible common equity (ROTCE).
The company’s revenue of $44.9 billion also exceeded the projected $43.86 billion, while its earnings per share of $4.96 surpassed the expectation of $4.48.
JPMorgan’s performance is driven by what KBW refers to as the “Triple Crown” advantages: scale, stability, and deregulation. Additionally, the firm raised its earnings forecasts for JPMorgan by 3% for 2026 and 6% for 2025, citing improved revenue estimates.
JPMorgan Chase & Co. (NYSE:JPM) is a multinational financial services company that offers investment banking in addition to consumer and small business financial services. It also offers commercial banking, asset management, and financial transaction processing.
1. Netflix Inc (NASDAQ:NFLX)
Year-to-Date Performance: 39.08%
Number of Hedge Fund Holders: 150
Netflix Inc. (NASDAQ:NFLX) ranks among the best momentum stocks to buy. On July 18, Citi raised its price target for Netflix Inc. (NASDAQ:NFLX) from $1,259 to $1,295 while keeping its Neutral rating on the streaming giant following the release of its second-quarter earnings.
The adjustment accounts for Citi’s updated model, which takes note of Netflix’s Q2 2025 performance and improved projection. Netflix’s current revenue growth of 14.84% is also in line with the investment bank’s updated revenue estimation for the company.
Citi lowered its 2025 earnings per share estimate by a smaller margin, citing expectations for stronger operating expense growth in the latter half of the year as Netflix Inc. (NASDAQ:NFLX) persists in investing in its advertising platform. On the other hand, Citi slightly raised the company’s projected earnings per share for 2026 and 2027.
Netflix Inc. (NASDAQ:NFLX) is a well-known global streaming platform that provides limitless access to a vast collection of films, TV series, and video games on devices with internet connections.
While we acknowledge the potential of NFLX to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NFLX and that has 100x upside potential, check out our report about this cheapest AI stock.
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