Momentum trading involves buying rising stocks with the idea that they will continue rising. While reminiscent of the greater fools theory, momentum trading is more than buying high and selling high. Good momentum trades combine factors that help ensure the market is bullish and capable of continuing the uptrend with catalysts to drive the market even higher.
The stocks in this article do just that: they combine numerous variables, including fundamental quality, an outlook for growth, analysts and institutional support, and catalysts for additional upside. A starting place to find such stocks in the future? MarketBeat's list of Most Upgraded Stocks and the Momentum Alerts feature.
Meta Platforms to Hit $660 in 2025
Meta Platforms has been a hot momentum trade for the last two years. The stock hit bottom in 2023, and the rebound was accelerated by the "year of efficiency" and then AI-enabled improvements in user, ad display, and revenue-per-ad metrics. The net result is a resurgence in growth, sustained in the high double-digits in 2024 expected to continue in 2025. Highlights from 2024 suggest the 2025 consensus estimates are low, providing a potential tailwind for the market in the form of outperformance and analyst upgrades to revenue and earnings targets.
Analysts support this market. The action in Q3 lifted the stock into the #1 position on MarketBeat's list of Most Upgraded Stocks, with 35 positive revisions in the ...
