This is a curated list of high quality momentum stocks that have more room to run.
I started with a list of 200 stocks that have gained at least 100% year-over-year. Then I eliminated the penny stocks and microcaps. Of the 80 remaining stocks, I carefully checked their financial health, their quality ratings, their earnings stability and their relative valuation scores versus their peers.
Lastly, I looked for analyst enthusiasm. As flawed as the process may be, a high consensus analyst rating can propel a stock higher.
Here is the list of high quality momentum stocks with more upside potential.
EXPI
EXP World Holdings Inc. is a cloud-based residential real estate company. They own and operate a cloud-based real estate brokerage and a technology platform business that develops and uses immersive technologies that help businesses increase their effectiveness and reduce costs from operating in traditional brick and mortar office spaces.
EXPI is up 480% year-over-year and has the highest analyst rating of the 10 stocks on this list.
OMI
Owens Minor distributes consumable medical supplies to a variety of providers.
The company operates in two segments that are Global products and Global Solutions. The company offers a portfolio of products and services to healthcare providers and manufacturers in the Global solutions segment.
OMI is up 300% year-over-year and the analysts love it.
FRHC
Freedom Holding has a broad range of activities in the securities industry. Retail securities brokerage, Research investment counseling, securities trading, market making, corporate investment banking and underwriting services in Central Asia.
FRHC is up 200% year-over-year.
APPS
Digital Turbine Inc. is engaged in media and mobile communications, delivering end-to-end products and solutions for mobile operators, application advertisers, device original equipment manufacturers and other third parties to enable them to effectively monetize mobile content.
APPS is up 400% year-over-year.
NVCR
NovoCure Ltd serves in the healthcare sector of the United States. Its business involves commercial-stage oncology operations involving therapies to cure critical tumors. Its pipeline consists of Ovarian Cancer, Pancreatic Cancer, Non-Small Cell Lung Cancer, and Brain Metastasis. NovoCure derives its major revenues in the United States.
NVCR is up 115% year-over-year.
TTD
The Trade Desk Inc is engaged in providing a technology platform for ad buyers.
Through its cloud-based platform ad buyers can create, manage, and optimize data-driven digital advertising campaigns across ad formats and channels, including display, video, audio, in-app, native and social, on a multitude of devices.
TTD is up 270% year-over-year.
BLDP
Ballard Power Systems Inc is a clean energy growth company. The company is engaged in proton exchange membrane fuel cell development and commercialization. The company's main business is the design, development, manufacture, sale, and service of fuel cell products for a variety of applications, focusing on motive power (material handling and buses) and stationary power (back-up power, supplemental power, and distributed generation).
A fuel cell is an environmentally clean electrochemical device that combines hydrogen fuel with oxygen (from the air) to produce electricity.
BLDP up 210% year-over-year.
FUTU
Futu Holdings Ltd is an online broker, providing a one-stop online investing services.
The company provides its services through its digital platform Futu NiuNiu, which includes market data, trading service and news feed of Hong Kong, Mainland China and United States stock markets. It generates its revenue in the form of brokerage commission and handling charge services.
FUTU is up 320% year-over-year.
ZM
Zoom Video Communications provides a communications platform that connects people through video, voice, chat, and content sharing. The company's cloud-native platform enables face-to-face video and connects users across various devices and locations in a single meeting.
ZM is up 515% year-over-year.
PTON
Peloton Interactive Inc operates an interactive fitness platform. It operates its business in three reportable segments: Connected Fitness Products, Subscription, and Other. Connected Fitness Product revenue consists of sales of bike and tread and related accessories, associated fees for delivery and installation, and extended warranty agreements.
PTON is up 250% year-over-year.
Final thoughts
This is a list of high quality stocks that have strong financials and solid earnings potential. The analyst community approves of them. Investors of all types and sizes have been buying them.
The average gain for these 10 stocks is 300% year-over-year, so it would be wise to do your due diligence and investigate them.
The caveat is that should the market suffer a large drawdown, or another bear market, these stocks and other momentum names will probably get hurt. Caution is advised, and always have a Plan B in place. That could be a stop loss order, or a put option, or a moving average crossover signal that will tell you when it's time to bail.
But as long as the market continues to march higher, these companies should continue to thrive.