Though volatility will continue to play foul with Wall Street, the recent surge in oil prices and tech sector renewed some confidence in the riskier assets.

Crude oil topped the $70-per-barrel mark for the first time since November 2014 thanks to Iran sanction worries, falling Venezuela production, historic output cut deal and higher demand. The rally in the commodity has spread major optimism in the energy sector, pushing many stocks to new highs.

Meanwhile, the technology sector has been powered by a spate of earnings releases from the major players, especially Apple (AAPL - Free Report) . This is because shares of AAPL are riding higher at the fastest pace in over nine years, logging in the longest six-day winning streak since Mar 17, 2009, skyrocketing 14.1%. The stock has scaled multiple highs surpassing $185 for the first time on May 7 and is heading toward a record trillion-dollar market value.

Additionally, stronger-than-expected earnings are providing the biggest catalyst. Notably, Q1 earnings season is on track to record its best quarter in seven years with earnings expected to be up 23.2% on revenue growth of 8.7%. This is much higher than 13.4% earnings growth and 8.1% revenue growth recorded in Q4.

Given the positive developments, momentum investing would be a winning strategy for those seeking higher returns in a short spell. This is because the strategy looks to fetch profits from buying hot stocks that have shown an uptrend over the past few weeks or months.

How to Pick Right Stocks?

Handpicking momentum stocks has now become a fairly simple task thanks to the Zacks Momentum Score which indicates the favorable time to enter a stock to take advantage of the momentum with the highest probability of success. Our research shows that stocks with a Momentum Style Score of A or B when combined with a Zacks Rank #1 (Strong Buy) or 2 (Buy) offer the best upside potential with a stronger momentum effect.

Hence, we have used the Zacks Stock Screener to find out the best stocks in the momentum space. The parameters include a Momentum Score of A, and a Zacks Rank #1 or 2. Further, we have narrowed down the list to locate stocks with below-industry P/E and P/B ratios, and a top Zacks industry rank (top 40%).

Here are the five picks:

Huntsman Corporation (HUN - Free Report)

Based in The Woodlands, TX, Huntsman is among the world's largest global manufacturers of differentiated and commodity chemical products for a variety of industrial and consumer applications. 

Zacks Rank: #1
Market Cap: $7.07 billion
Zacks Industry Rank: Top 10%
P/E: 9.51 versus industry average of 13.98
P/B: 1.87 versus industry average of 2.61

Louisiana-Pacific Corporation (LPX - Free Report)

Based in Nashville, TN, Louisiana-Pacific manufactures building products primarily for use in new home construction, repair and remodeling, and outdoor structures, as well as light industrial and commercial construction applications.

Zacks Rank: #1
Market Cap: $4.1 billion
Zacks Industry Rank: Top 5%
P/E: 9.73 versus industry average of 20.37
P/B: 2.44 versus industry average of 2.85

Bunge Limited (BG - Free Report)

Based in White Plains, NY, Bunge is an integrated global agribusiness and food company spanning the farm-to-consumer food chain.

Zacks Rank: #2
Market Cap: $9.92 billion
Zacks Industry Rank: Top 24%
P/E: 14.28 versus industry average of 17.39
P/B: 1.48 versus industry average of 1.98

ADT Inc. (ADT - Free Report)

Based in Boca Raton, FL, ADT provides security and automation solutions for homes and businesses in the United States and Canada.

Zacks Rank: #2
Market Cap: $6.05 billion
Zacks Industry Rank: Top 9%
P/E: 9.93 versus industry average of 14.81
P/B: 1.84 versus industry average of 2.45

American Equity Investment Life Holding Company (AEL - Free Report)

Based in West Des Moines, IA, American Equity provides life insurance products and services in the United States.

Zacks Rank: #2
Market Cap: $2.63 billion
Zacks Industry Rank: Top 31%
P/E: 8.62 versus industry average of 9.34
P/B: 1.04 versus industry average of 1.09