3 Momentum Stocks to Consider Right Now

The stocks featured in this article have all approached their 52-week highs. When these price levels hit, it typically signals strong business execution, positive market sentiment, or significant industry tailwinds.

While momentum can be a leading indicator, it has burned many investors as it doesn’t always correlate with long-term success. On that note, here are three stocks with lasting competitive advantages.

Quanta (PWR)

One-Month Return: +12.1%

A construction engineering services company, Quanta (NYSE:PWR) provides infrastructure solutions to a variety of sectors, including energy and communications.

Why Are We Backing PWR?

1. Demand is greater than supply as the company’s 20.3% average backlog growth over the past two years shows it’s securing new contracts and accumulating more orders than it can fulfill
2. Estimated revenue growth of 12.7% for the next 12 months implies its momentum over the last two years will continue
3. Earnings growth has trumped its peers over the last two years as its EPS has compounded at 25.1% annually

Quanta is trading at $421.15 per share, or 37.6x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.

UL Solutions (ULS)

One-Month Return: +13%

Founded in 1894 as a response to the growing dangers of electricity in American homes and businesses, UL Solutions (NYSE:ULS) provides testing, inspection, and certification services that help companies ensure their products meet safety, security, and sustainability standards.

Why Should ULS Be on Your Watchlist?

1. 7.2% annual revenue growth over the last two years surpassed the sector average as its services resonated with customers
2. Free cash flow margin jumped by 4.8 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
3. Stellar returns on capital showcase management’s ability to surface highly profitable business ventures

UL Solutions’s stock price of $72.21 implies a valuation ratio of 39.1x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free for active Edge members.

PennyMac Financial Services (PFSI)

One-Month Return: +1.7%

Founded during the 2008 financial crisis to help address the mortgage market meltdown, PennyMac Financial Services (NYSE:PFSI) is a specialty financial services company that originates, services, and manages investments related to residential mortgage loans in the United States.

Why Are We Positive On PFSI?

1. Annual net interest income growth of 39.9% over the last five years was superb and indicates its market share increased during this cycle
2. Incremental sales significantly boosted profitability as its annual earnings per share growth of 66.2% over the last two years outstripped its revenue performance
3. Annual tangible book value per share growth of 18.8% over the last five years was superb and indicates its capital strength increased during this cycle

At $123.15 per share, PennyMac Financial Services trades at 1.5x forward P/B. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.

High-Quality Stocks for All Market Conditions

When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.

Don’t let fear keep you from great opportunities and take a look at Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today

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