Top-Ranked Momentum Stocks to Buy in July

The stock market dipped to start the first full week of July as the trade war takes over the headlines again. The return of trade war uncertainty is not what Wall Street hoped for after several months of seemingly positive tariff negotiation progress between the U.S. and many critical trading partners, including China.

It’s unclear what’s right around the corner on the trade war front. But it’s worth remembering that Trump and his administration likely do not want to crush the U.S. economy or the stock market.

No matter what the social media posts say or what the headlines are, investors must remind themselves that the market shook off the last tariff war escalation, which was far more shocking at the time.

On top of that, the S&P 500 climbed during July in the past 10 years, and the earnings outlook remains solid, boosted by AI and tech. Plus, the Fed is still projected to cut interest rates again in 2025.

This backdrop means that investors likely want to keep buying stocks in July and beyond, blocking out any near-term noise.

Today we explore a screen that helps investors find surging stocks trading near their 52-week highs. These stocks have also experienced strong upward earnings revisions activity, earning them Zacks Rank #1 (Strong Buys).

Momentum Screen Basics

The screen we are looking into today comes loaded with the Research Wizard. The screen helps investors dig through all of the Zacks Rank #1 (Strong Buy) stocks, of which there are over 200 at any given time, to find some of the top momentum names.

The screen narrows down the list of Zacks Rank #1 (Strong Buy) stocksto those with upward price momentum that are also trading within 20% of their 52-week highs. The screen then uses the PEG ratio and the Price to Sales ratio to help make sure investors are getting value as well. The screen then makes your life a little easier and narrows it down to just seven stock picks.

The screen basics are listed below…

·       Zacks Rank = #1 (Strong Buy)

·       Current Price/52-week High >= 0.8

·       PEG Ratio: P/E F(1)/EPS Growth <= 1

·       Price/Sales <= 3

·       Percentage Change Price -12 Weeks = Top # 7

This strategy comes loaded with the Research Wizard and it is called bt_sow_momentum_method1 It can be found in the SoW (Screen of the Week) folder.

The screen is pretty simple, yet powerful. Here is one of the seven stocks that made it through this week's screen…

Buy Surging Value Stock AMG Before It Breaks Out to All-Time Highs

Affiliated Managers Group, Inc. (AMG) is a global asset management company that partners with and invests in independent investment firms. AMG offers shareholders what it calls a “unique opportunity to invest, at scale, in a diverse array of growing and cash-flow-generating independent investment firms through a proven partnership approach.”

AMG acquires equity stakes (majority or minority) in high-quality, independent asset management firms. Affiliates specialize in various investment strategies, including equities (58% of AUM), alternative investments (hedge funds, private equity, 35%), and fixed income.

Unlike traditional asset managers, AMG doesn’t directly manage investments. Instead, AMG acts as a strategic partner, owning stakes in firms while allowing them to operate independently, preserving their entrepreneurial culture.

Affiliated Managers Group’s beat-and-raise first quarter helped it land its Zacks Rank #1 (Strong Buy), with its consensus earnings estimates up about 5% for 2025 and 2026. AMG is projected to grow its adjusted earnings by 8% and 13%, respectively, this year and next.

AMG stock has climbed 32% in the past year to top its highly-ranked Financial-Investment Management industry’s 23%. The recent outperformance is part of a 195% charge in the last five years that’s seen it nearly triple its industry. The stock has also easily outpaced the S&P 500 over the last 25 years, soaring 540% vs. 383%.

Affiliated Managers Group has soared to new 52-week highs, and it’s on the verge of breaking above a trading range it's been stuck in for the last decade. Yet AMG trades at a 57% discount to its peaks and 50% below its sector at 8.2X forward 12-month earnings. 

Get the rest of the stocks on this list and start looking for the newest companies that fit these criteria. It's easy to do. And it could help you find your next big winner. Start screening for these companies today with a free trial to the Research Wizard. You can do it.

Click here to sign up for a free trial to the Research Wizard today.

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Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.

Disclosure: Performance information for Zacks’ portfolios and strategies are available at: www.zacks.com/performance_disclosure

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