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Buying Great Momentum Stocks for February and Beyond

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The S&P 500 and the Nasdaq popped through early afternoon trading on Tuesday as Wall Street celebrated that the tariff fight between the U.S. and Mexico and Canada has been delayed for at least 30 days.

Despite the flood of earnings reports, the tariff battles, the DeepSeek news, and beyond, the S&P 500 found support at its 50-day moving average again today.

The Nasdaq’s pop pushed it right back near that key technical level as the Wall Street bulls continued to hold their ground.

The sideways start to 2024 is healthy following the post-election rally.

The choppiness makes stocks charging higher in 2025 stand out. Today we explore a screen that helps investors find soaring stocks trading near fresh highs in early February.  

The stocks the screen puts on your radar are also experiencing impressive upward earnings revisions activity, earning them Zacks Rank #1 (Strong Buys).

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…

Why This Soaring Stock Looks Like a Must-Buy

Life Time Group Holdings (LTH - Free Report)  stock has ripped 130% higher in the last 12 months, including a 35% charge to start 2025. The fitness center giant’s growth outlook is impressive and its bottom line revisions keep climbing.

Life Time Group owns over 175 “athletic country clubs” or higher-end fitness and workout centers across the U.S. and Canada. The company’s app is gaining traction, and Life Time owns and produces nearly 30 well-known athletic events.

Zacks Investment Research
Image Source: Zacks Investment Research

Life Time grew its revenue by 22% in 2023 and swung from a loss of -$0.01 a share to +$0.37 a share in earnings. LTH carried over its strong growth into 2024.

Life Time is projected to grow its revenue by 18% in FY24 and 12% in FY25 to around $3 billion. The fitness powerhouse is expected to grow its adjusted earnings by 124% in FY24 to $0.83 a share.

Life Time is expected to boost its earnings by 50% in 2025.

LTH’s earnings outlook has continued to improve, with its FY25 estimate up 20% in the last month. And its Most Accurate estimates all came in above consensus. LTH’s improved bottom-line outlook helps Life Time earn its Zacks Rank #1 (Strong Buy).

Zacks Investment Research
Image Source: Zacks Investment Research

Life Time is deleveraging and focusing on improving its balance sheet and generating more cash. Eight of the 13 brokerage recommendations Zacks has are “Strong Buys,” alongside zero sells.

Despite its 130% 12-month surge to all-time highs, LTH trades 7% below its average Zacks price target and at a 65% discount to its two-year highs at 27.6X 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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