5 Large-Cap Stocks Surging With Great Momentum

In this 79-month old Bull market, the easy money has already been made. There is nothing quite cheap, unless it’s justifiably so.

Today, it’s all about the next earnings beat story or the latest merger deal or even a brand-new CEO. Welcome to the new Wall Street world of fast markets, fast money and jam-packed trades — where a single piece of news can shoot a stock’s price sky high or squash months of gains in a single day.

In such precarious times, value, growth or income investing might just fall short of making sustained profits for your portfolio.

The Road to Riches

There is another, time-tested winning strategy: simply bet on the frontrunner stocks that are galloping fast. One of the most successful strategies today is to get in on momentum stocks at the right time.

In this market, in a sense, everyone is a momentum trader, scouring for the next hot sector or stock where they can turn a fast profit. This is because momentum stocks have proven to be high fliers in every market setting. But amid all the ups and downs, how will investors distinguish between companies that are just taking a breather before their next leg up from those running on a dead track?

More importantly, how shall we separate the ones just running a sprint from those set for a marathon?

Eye for the Obvious

When we scour for pacesetter stocks that are galloping ahead on strong momentum, we also need to make sure that we don’t bet on those which seem off-the-bridle. For instance, small-cap stocks, with their comparatively deeper risk profile, tend to react much more aggressively to events. Thus, pullbacks or turnarounds also happen faster for these companies, and investors may not get out fast enough to avoid getting trapped.

Hence, we will focus on large-caps, which are big, established companies in the stock market, and have been around for a while. By virtue of their dominant market position, global footprint and relatively consistent cash flow stream, these companies tend to be more reliable investments.