For Immediate Release
Chicago, IL – January 6, 2025 – Stocks in this week’s article are NVIDIA Corp. NVDA, Brown & Brown, Inc. BRO and Chipotle Mexican Grill, Inc. CMG.
NVIDIA and 2 Other S&P 500 Momentum Stocks to Buy in 2025
After back-to-back standout years, the S&P 500 is well-poised to gain further in 2025, banking on Donald Trump's pro-growth initiatives, the Federal Reserve's moderate interest rate policies and a resilient U.S. economy.
In 2024, the S&P 500 jumped more than 20% for the second consecutive year. With further gains anticipated, investors should seize the bullish trend by investing in strong S&P 500 momentum stocks. Investors should apply the investment strategy of Richard Driehaus, better known as the "buy high and sell higher" theory.
To that end, stocks like NVIDIA Corp., Brown & Brown, Inc. and Chipotle Mexican Grill, Inc. have been selected as the momentum picks for 2025 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 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. This strategy, which was designed to provide better returns over the long term, also prioritizes companies with a strong history of beating estimates.
Here are the top three of the 47 stocks:
NVIDIA
NVIDIA offers graphics, computing and networking solutions. It has a Zacks Rank #2 and a Momentum Score of A. The trailing four-quarter earnings surprise for NVDA is 9.8%, on average (read more: NVIDIA is the Top 2025 Magnificent 7 Stock Pick - Find Out Why).
Brown & Brown
Brown & Brown markets and sells insurance products and services. It has a Zacks Rank #2 and a Momentum Score of B. The trailing four-quarter earnings surprise for BRO is 6.9%, on average.
Chipotle Mexican Grill
Chipotle Mexican Grill operates quick-casual and fresh Mexican food restaurant chains. It has a Zacks Rank #2 and a Momentum Score of B. The trailing four-quarter earnings surprise for CMG is 9.8%, on average.
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For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2391236/nvidia-2-other-sp-500-momentum-stocks-to-buy-in-2025
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.
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Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners UpChipotle Mexican Grill, Inc. (CMG) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Brown & Brown, Inc. (BRO) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
