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5 High-Beta & Momentum Stocks to Buy Right Now

Sanghamitra Saha

U.S. stocks seem to have shrugged off all uncertainties regarding nagging trade tensions between the United States and China. The one-month-long trade tantrums of the United States (first with China and then with Mexico) have eased as Fed Chair Powell hinted a possible rate cut to keep economic expansion going.

Like several analysts and economists, we too believe that the U.S.-China tariff battle is a threat to the American economy as it could hurt manufacturers and consumers. Against this worrisome environment, central bank’s likely intervention came as a relief to investors.

At the current level, according to CME FedWatch tool, there is a 47.2% chance of a 50-bp rate cut in the Sep 18 meeting, followed by a 34.1% probability of 25-bp rate cut, 12.6% likelihood of a 75-bp rate cut and only 6.1% probability of a no-rate-cut scenario.

Thanks to rate cut hopes, the Dow Jones Industrial Average rallied more than 500 points on Jun 4 followed by a 207-point jump on Jun 5. The Nasdaq which slipped into a correction zone to start the month, also recoiled swiftly.

Why High-Beta & Momentum Investing Is Intriguing Now

Notably, high-beta and high-momentum products are expected to lead the market. This is because high-beta funds experience larger gains than the broader market counterparts in a bullish market. And momentum investing might be an intriguing to those seeking higher returns in a short spell. It looks to reflect profits from buying stocks that are sizzling on the market.

Below we highlight a few high-beta and high-momentum stocks that could offer investors some outstanding gains. For this we highlight stocks that have a Momentum Score of A’, Zacks Rank #1 (Strong Buy) or 2 (Buy) and a beta greater than one.

Arconic Inc. ARNC

The Zacks Rank #1 company Arconic was carved out of aluminum giant Alcoa on Nov 1, 2016. The company describes itself as a global leader in multi-material, precision engineered products and solutions for a variety of industries.

Metropolitan Bank Holding Corp. MCB

The Zacks Rank #1 Metropolitan Bank Holding is the holding company for Metropolitan Commercial Bank(R), The Entrepreneurial Bank. The company is a chartered commercial bank which provides deposits, small business lending, trade finance, cash management solutions, speciality markets, personal checking, savings, electronic banking and prepaid cards.

Astronics Corporation ATRO

The Zacks Rank #1 company is a manufacturer of specialized lighting and electronics for the cockpit, cabin and exteriors of military, commercial transport and private business jet aircraft.

Oasis Midstream Partners LP OMP

Oasis Midstream Partners LP is a master limited partnership company. It owns, develops, operate and acquire a diversified portfolio of midstream assets primarily in North America. It also has a Zacks Rank #1.

Howard Hughes Corporation HHC

The Zacks Rank #1 company operates as a real estate company engaged in the development of master planned communities and other strategic real estate development opportunities across the United States.

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Astronics Corporation (ATRO) : Free Stock Analysis Report
Arconic Inc. (ARNC) : Free Stock Analysis Report
Howard Hughes Corporation (The) (HHC) : Free Stock Analysis Report
Metropolitan Bank Holding Corp. (MCB) : Free Stock Analysis Report
Oasis Midstream Partners LP (OMP) : Free Stock Analysis Report
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