We recently published a list of 10 Best Short-Term Stocks To Buy Right Now. In this article, we are going to take a look at where B&G Foods, Inc. (NYSE:BGS) stands against other best short-term stocks with a buying opportunity for investors.
Thrilling highs, daunting lows, and the energized chase after the next big opportunity – this thoroughly defines the current stock market. In this roller coaster ride, momentum investing is an often-seen strategy piquing the investors’ interest, which involves capitalizing on continuing existing market trends. The approach holds onto the hope that high performers in the past will continue to perform better in the future as well. A curious subset within the strategy is the price momentum stocks, whose recent downturns are seen as an opportunity as they show potential for a swift rebound.
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2025 has started with many changes, leading to complications in the U.S. stock market. The political changes, including the change in the U.S.’s stand in the Ukraine-Russia war, tariff changes leaning towards unfavorable imports, and the advent of artificial intelligence (AI) models from foreign countries, have brought down the stock value of many dominating leaders in the industry. For instance, CNBC reported a $750 billion drop in the tech industry’s Magnificent 7’s value as of March 10, 2025, owing to new tariffs. However, this decline has been attributed more to institutional selling than fundamental weaknesses. Discerning investors perceive it as a potential opportunity.
It is not just the tech giants feeling the heat. Price momentum stocks with negative one-year returns in the broader market continue to attract investors’ interest despite the fluctuations in the market. Despite the decline over the past year, these stocks have shown positive momentum in more recent periods, getting the attention of many analysts in the market. Such patterns are common in companies that underwent a restructuring, launched a promising product, or benefited from favorable market conditions. To identify these stocks, we must be willing to go deeper beyond the surface-level metrics, and hence, we present this article to you.
Before going into the article, however, investors are asked to approach the momentum investing strategy with caution. The strategy, particularly concerning stocks with recent negative returns, can be like walking a tightrope. We must consider the possibility of the factors that led to their decline, resurfacing in the future, or the short life of the recent positive momentum. Hence, in addition to the information we share in our article, thorough research alongside a well-defined exit strategy is highly recommended.
The pursuit of high returns can be tempting. Hence, investors are suggested to estimate the risk tolerance levels and long-term objectives and align them with their investment decisions. Even during tough times, the stock market presents investors with many opportunities. Discernment and prudence are required to make informed investment decisions that provide the best chance of generating an optimal return for your investment.
Our Methodology
We have used three key criteria to identify the 10 best short-term momentum stocks: a minimum decline of 30% over the past year, a minimum gain of 7.5% in the past month, and average daily trading volume of at least 100,000 shares. In addition, we have considered technical indicators focusing on stocks that recently crossed above their 20-day Simple Moving Average (SMA) and where the 20-day SMA exceeds the 200-day SMA, which signals a potential upward trend. To rank the list, we used the one-month returns. With it, we prioritized the most recent momentum performers. We have also considered the hedge fund interest from Insider Monkey’s Q4 2024 database for each stock on our list to project the level of market backing.
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).
A busy supermarket with shelves full of packaged foods.
B&G Foods, Inc. (NYSE:BGS)
Last 52 weeks return: -34.44%
Last 1 month’s return: 20.90%
No. of hedge fund portfolios: 19
B&G Foods, Inc. (NYSE:BGS) is a leading food company engaged in the manufacturing, selling, and distribution of branded shelf-stable and frozen foods. This includes various products like canned goods, spices, sauces, and cereals. The company runs its business operations from its headquarters located in New Jersey, United States. It serves many regions across the globe, including Canada and Puerto Rico.
B&G Foods, Inc. (NYSE:BGS) saw a decline of 34.44% in its value during the last 52 weeks ending March 14, 2025. The negative growth resulted from declining sales caused by the company’s divestiture of its Green Giant U.S. shelf-stable product line in late 2023. Additionally, the company noted recorded impairments across a group of four brands, including Green Giant, Victoria, Static Guard, and McCann’s.
However, last month’s return for the company saw an upward trend, reaching 20.90%. A 5% increase followed the trend in the net sales of the spices and flavor solutions business unit, which contributed to B&G Foods, Inc. (NYSE:BGS)’s fourth quarter overall net sales of $551.6 million, meeting the analysts’ expectations. Debt was also reduced from $2.05 billion to $1.994 billion at the end of the fourth quarter of 2024. The company’s SMA further sees a short-term upward trend of 6.11% (20-days) against a longer-term downward trend.
With 19 hedge funds from the Insider Monkey database backing the stock at the end of Q4 2024, a strong institutional interest can be recognized, signaling the need for the stock’s entry into the 10 best short-term stocks to be bought.
Overall, BGS ranks 5th on our list of 10 Best Short-Term Stocks To Buy Right Now. While we acknowledge the potential for BGS as an investment, our conviction lies in the belief that some AI stocks hold more significant promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BGS but that trades at less than 5 times its earnings check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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