4 Momentum Stocks To Buy In May

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The U.S. economy continues to recover thanks to a fast-paced, nationwide vaccination program, impressive fiscal stimulus, and monetary policy support. However, rising concerns about the potential for inflation, President Biden’s tax proposal, and the resurgence of COVID-19 cases in several countries are driving significant market volatility.

Against this backdrop, investors are focusing on momentum investing. This is because after gaining momentum a stock usually maintains it for some time irrespective of market conditions. Investors’ interest in momentum stocks is evidenced by iShares MSCI USA Momentum Factor ETF’s (MTUM) 8.1% gains over the past six months.

So, we think investors looking to dodge market volatility should consider betting on SS&C Technologies Holdings, Inc. (SSNC), Whirlpool Corporation (WHR), Vertiv Holdings Co (VRT), and Penske Automotive Group, Inc. (PAG). These stocks have already gained momentum, which is expected to continue for some time based on the strength in their financials.

SS&C Technologies Holdings, Inc. (SSNC)

SSNC is a provider of software and software-enabled services. The company owns and operates technology stacks across securities accounting, front-to-back-office operations, performance and risk analytics, regulatory reporting, and healthcare information processes. It serves various markets, including institutional asset and wealth management, healthcare, financial advisory, and financial institutions markets.

The company’s $1.23 billion in net sales for its fiscal year 2021 first quarter, ended March 31,  represents a 5.1% year-over-year rise. Its operating income has increased 23% year-over-year to $261.90 billion. Also, its EPS has increased by 75.7% year-over-year to $0.65.

For the current quarter, ending June 30, analysts expect SSNC’s EPS to increase 9.6% year-over-year to $1.14. Also, it surpassed consensus EPS estimates in each of the trailing four quarters. Its revenue is expected to increase by 7.1% year-over-year to $1.21 billion for the quarter ending September 30, 2021.

On April 29, SSNC launched SS&C Chorus, a newly integrated intelligent automation platform that is designed to increase straight-through processing, reduce operational risk, and enhance digital customer journeys. The company’s consumer base is expected to increase on the back of this innovative offering. The stock has gained 28.8% over the past year to close yesterday’s trading session at $72.82. It has also gained 4.9% over the past three months and 12.1% over the past six months.

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