News

For Immediate Release

Chicago, IL – December 5, 2024 – Stocks in this week’s article are Wells Fargo & Co. WFC, NVIDIA Corp. NVDA and Vistra Corp. VST.

Buy Momentum Stocks NVIDIA and Vistra as S&P 500 Aims for 7000

The S&P 500 surpassed 6,000 amid U.S. economic growth and a strong labor market. With the Trump administration expected to create a favorable stock market environment in a low interest rate scenario, the S&P 500 seems well-poised to scale upward.

Equity strategist Christopher Harvey of Wells Fargo & Co. , thus, forecasted the S&P 500 to reach 7,007 by 2025, while Yardeni Research and Deutsche Bank predicted it to finish at 7,000 next year.

Hence, investors can capitalize on the present market uptrend by investing in sound S&P 500 momentum stocks using Richard Driehaus’ strategy of "buy high and sell higher" theory.

To that end, stocks like NVIDIA Corp. and Vistra Corp. have been selected as the momentum picks for the day using the Driehaus strategy.

A Detailed Look Into the Driehaus Strategy

Regarding the strategy, Driehaus once said, “I would much rather invest in a stock that’s increasing in price and take the risk that it may begin to decline than invest in a stock that’s already in decline and try to guess when it will turn around.” In line with this insight, the American.

The Association of Individual Investors (“AAII”) considered the percentage 50-day moving average as one of the key criteria before creating a portfolio following Driehaus’ philosophy.

It is calculated by dividing the numerator (month-end price minus 50-day moving average of month-end price) by the 50-day moving average of the month-end price. Another momentum indicator — positive relative strength — has also been included in this strategy. A positive percentage 50-day moving average indicates that the stock is trading at a price higher than its 50-day moving average level, indicating an uptrend.

Moreover, AAII found that Driehaus primarily focuses on strong earnings growth rates and impressive earnings projections to pick potential outperformers. Companies with a strong history of beating estimates are also given importance in this strategy, which was made to provide better returns over the long term.

We use that basis to determine our stock selections using Zack’s Research Wizard Tool.

Here are the best two stocks:

NVIDIA

NVIDIA is the worldwide leader in visual computing technologies and the inventor of the graphic processing unit, or GPU. NVIDIA has a Zacks Rank #2 and a Momentum Score of B.

The trailing four-quarter earnings surprise for NVDA is 9.8%, on average (read more: 3 Reasons Besides Q3 Data Center Success to Buy NVIDIA Stock).

Vistra

Vistra operates as an integrated retail electricity and power generation company. Vistra has a Zacks Rank #1 and a Momentum Score of B.

The trailing four-quarter earnings surprise for VST is 7.1%, on average (read more: Vistra Surpasses NVIDIA as S&P 500's Top Stock in 2024: Buy Now?).

You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.

The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.

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

For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2379157/buy-momentum-stocks-nvidia-vistra-as-sp-500-aims-for-7000?art_rec=quote-stock_overview-zacks_news-ID01-txt-2379157

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Contact: Jim Giaquinto

Company: Zacks.com

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Email: pr@zacks.com

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

5 Stocks Set to Double

Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>

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Wells Fargo & Company (WFC) : Free Stock Analysis Report

NVIDIA Corporation (NVDA) : Free Stock Analysis Report

Vistra Corp. (VST) : Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.