The momentum in cryptocurrencies has fizzled out over the past few weeks, primarily due to China’s ban on miners. Apart from shutting down bitcoin mining projects in the Sichuan province, banks and fintech organizations have been asked to stop dealing in cryptocurrencies.
The largest of the cryptocurrencies — bitcoin — had a rocky second quarter, hitting an all-time high of $64,829.14 on Apr 14 and then briefly dropping to $28,600 on Jun 22. It is currently trading at $33,891.39,
down 1.7% on a 24-hour basis
and 47.7% from the all-time high, per coindesk.com data. In the past week, bitcoin is down 1.8%.
Bitcoin’s dramatic upside run, which was fueled by
Tesla
’s
TSLA
announcement of accepting the digital coin as payments for its cars, came to a screeching halt after the EV giant’s CEO Elon Musk cited environmental concerns of mining bitcoins due to heavy power consumption that requires usage of fossil fuels.
Moreover, an unexpected hawkish tone of the Federal Reserve, which is now expected to make its first interest rate hike in 2023 instead of 2024, dragged down cryptocurrency prices in recent times.
Ethereum, the second-biggest digital coin in terms of market cap, is also
currently down 1.4% in the past 24 hours
, per CoinGecko data. Dogecoin, Elon Musk’s favorite, is currently down 9.4% over the past week.
Momentum Stocks Are Better Bets Than Cryptos
Momentum in cryptocurrencies is expected to remain subdued due to rising regulatory concerns globally. Moreover, its volatility has been alarming investors.
Meanwhile, equity markets have been going great, with all three major indexes – S&P 500, Dow Jones Industrial and Nasdaq – rising 16%, 13.6% and 13.5%, respectively, on a year-to-date basis.
Here we pick five momentum stocks that have rallied in the past week and the past month. With the cryptocurrency momentum stalling, these hot stocks provide better investment opportunities.
Momentum investing calls for continued appraisal of stocks, which ensures that an investor does not pick a beaten-down name or overlook a thriving one. Momentum investors buy high on the anticipation that the stock will only ascend in the short to intermediate term.
Apart from strong growth potential and robust earnings estimate revisions, each of these stocks has a favorable combination of a
Momentum Score
of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see
the complete list of today’s Zacks #1 Rank stocks here
.
These stocks have also outperformed the S&P 500 composite on a year-to-date basis.
Year-to-Date Performance
Image Source: Zacks Investment Research
CarMax
KMX
operates as a specialty retailer of used and new vehicles. The company is riding on its aggressive store-expansion initiatives and fast delivery. Ship-to-home next day, curb-side pick-up option, buy online, pick-up in stores and commercial customer ordering are picking pace, driving traffic to the company’s online site.
CarMax has a Momentum Score of A. The Zacks Consensus Estimate for the company’s fiscal 2022 earnings stands at $6.43 per share, up 10.9% over the past 60 days.
Shares of this $21.80-billion company have been up 5.04% in the past week and 17.33% in the past month.
Oasis Petroleum
’s
OAS
operations are focused on North Dakota’s Williston Basin, with acreage of top-tier assets and a multi-year drilling inventory. This $2.11-billion company’s exposure to the more stable cash flows from its midstream segment diversifies its earnings stream and offers a buffer against the volatile upstream business.
Oasis currently flaunts a Zacks Rank #1 and a Momentum Score of A. The Zacks Consensus Estimate for its 2021 earnings is pegged at $15.55 per share, having moved up 457.3% in the past 60 days.
Shares have gained 5.2% in the past week and 15.35% in the past month.
Perion Network
PERI
is riding on strong advertising revenue growth. Recovery in advertiser spending and spike in e-commerce-related ad-spending are key catalysts for this $685.16-million company. Perion is also expected to benefit from robust performance of its Search business, driven by strong advertiser demand and partnership with
Microsoft
’s
MSFT
Bing.
Perion currently has a Zacks Rank of 2 and a Momentum Score of A. The Zacks Consensus Estimate for its 2021 earnings is pegged at 59 per share, having been raised 78.8% in the past 60 days.
The stock has gained 8.47% in the past week and 20.84% in the past month.
Earthstone Energy
ESTE
currently carries a Zacks Rank of 2 and a Momentum Score of A. The Zacks Consensus Estimate for its 2021 earnings is pegged at 53 cents per share, having been raised 231.3% in the past 60 days.
The oil and gas company primarily focuses in the Midland Basin of west Texas. The recent acquisition of IRM and pending Tracker acquisition will expand the company’s base production volumes. Moreover, a strong balance sheet makes the stock attractive for investors.
Shares have gained 8.67% in the past week and 23.93% in the past month.
GasLog Partners
GLOP
is engaged in LNG transportation through its fleet of 15 LNG carriers. It is benefiting from rising demand for LNG that is driving LNG shipping spot rates. Moreover, stringent cost control is expected to boost profitability.
GasLog carries a Momentum Score of B and has a market cap of $202.84 million. The consensus mark for its 2021 earnings is pegged at $1.45 per share, having been moved north by 48% in the past 60 days.
The stock has gained 8.49% in the past week and 34.54% in the past month.
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