In this article, we will look at the 5 best momentum stocks to invest in. If you want to explore similar stocks, you can read 12 Best Momentum Stocks To Invest In.
5. Hudson Technologies, Inc. (NASDAQ:HDSN)
YTD Return as of October 20: 79.75%
Number of Hedge Fund Holders: 14
Hudson Technologies, Inc. (NASDAQ:HDSN) provides solutions for commercial and industrial chiller plants and refrigeration systems. The stock is up 79.75% for the year, as of October 20, and is ranked high among the best momentum stocks to buy now. The company is cash-rich, profitable, and undervalued. Hudson Technologies, Inc. (NASDAQ:HDSN) has free cash flows of $38.74 million and a trailing twelve-month operating margin of 39.88%. As of October 20, Hudson Technologies, Inc. (NASDAQ:HDSN) is trading at a PE multiple of 4x.
Over the past three months, 2 Wall Street analysts have given Buy ratings on Hudson Technologies, Inc. (NASDAQ:HDSN). The stock has an average price target of $12, which implies a 55% upside from current levels.
At the close of Q2 2022, 14 hedge funds were eager on Hudson Technologies, Inc. (NASDAQ:HDSN) and held stakes worth $67 million in the company. This is compared to 14 positions in the previous quarter with stakes worth $45 million. As of June 30, Royce & Associates is the largest investor in Hudson Technologies, Inc. (NASDAQ:HDSN) and has stakes worth $12.59 million in the company.
Here is what Meridian Funds had to say about Hudson Technologies, Inc. (NASDAQ:HDSN) in its second-quarter 2022 investor letter:
“Hudson Technologies, Inc. (NASDAQ:HDSN) is the market leader in recycled and reclaimed refrigerants with proprietary reclamation technology and a national distribution network. We have owned shares of the company for several years due to our belief that its leading position would allow the company to capitalize on improving supply-demand dynamics from the Environmental Protection Agency’s (EPA’s) phaseout of R22 (refrigerant used in air conditioners). The phaseout concluded in 2020 and virgin R-22 is no longer being produced. This has resulted in strong refrigerant pricing given stable demand and more limited supply. As a result, overall fundamentals have accelerated which resulted in 150% revenue growth and 45% operating margins in its most recent quarter. We are optimistic that another catalyst for growth is the AIM Act to reduce the production of hydrofluorocarbons (HFCs). Similar to the phaseout of R-22, we believe this will result in strong supply-demand dynamics for reclaimed HFC refrigerants and allow Hudson to capitalize on its market-leading position. During the quarter, we maintained our position in the stock.”
4. Antero Resources Corporation (NYSE:AR)
YTD Return as of October 20: 97.24%
Number of Hedge Fund Holders: 19
Antero Resources Corporation (NYSE:AR) is an American oil and natural gas company. At the close of Q2 2022, Antero Resources Corporation (NYSE:AR) was spotted on 19 hedge fund portfolios. These funds held stakes of $121.35 million in the company, up from $115.88 million in the previous quarter with 17 positions. The hedge fund sentiment for the stock is positive.
This August, Mizuho analyst Vincent Lovaglio revised his price target on Antero Resources Corporation (NYSE:AR) to $49 from $53 and maintained a Buy rating on the shares. On October 19, Jefferies analyst Lloyd Byrne took coverage of Antero Resources Corporation (NYSE:AR) with a Buy rating and a $47 price target.
Antero Resources Corporation (NYSE:AR) is trading cheaply relative to earnings and is presenting an optimal buying opportunity for investors. As of October 20, the stock is trading at a PE multiple of 11x and has gained 97.24% year to date. The company has free cash flows of over $2.1 billion and is one of the best momentum stocks to buy now.
As of June 30, Point State Capital is the top investor in Antero Resources Corporation (NYSE:AR) and has stakes worth $129.85 million in the company.
3. Peabody Energy Corporation (NYSE:BTU)
YTD Return as of October 20: 114.02%
Number of Hedge Fund Holders: 29
Peabody Energy Corporation (NYSE:BTU) engages in coal mining operations in the United States and internationally. The stock is up 114% for the year, as of October 20, and is trading at a PE ratio of 4.44. Moreover, Peabody Energy Corporation (NYSE:BTU) is cash-rich and profitable. The company has a trailing twelve-month operating margin of 17% and has free cash flows of $301.7 million. Peabody Energy Corporation (NYSE:BTU) is ranked high among the best momentum stocks to buy now.
At the close of Q2 2022, Peabody Energy Corporation (NYSE:BTU) was spotted on 29 hedge fund portfolios. The collective stakes of these hedge funds in the company amounted to over $867 million. As of June 30, Elliott Management is the leading investor in Peabody Energy Corporation (NYSE:BTU) and has stakes worth more than $550 million in the company.
This October, B. Riley analyst Lucas Pipes raised his price target on Peabody Energy Corporation (NYSE:BTU) to $31 from $28 and maintained a Buy rating on the shares.
2. Occidental Petroleum Corporation (NYSE:OXY)
YTD Return as of October 20: 123.89%
Number of Hedge Fund Holders: 66
At the end of Q2 2022, Occidental Petroleum Corporation (NYSE:OXY) was a part of 66 investment portfolios. These funds held stakes of $13.75 billion in the company, up from $12.61 billion in the previous quarter with 67 positions. As of June 30, Berkshire Hathaway is the most prominent investor in Occidental Petroleum Corporation (NYSE:OXY) and has stakes worth more than $9 billion in the company.
Occidental Petroleum Corporation (NYSE:OXY) is one of the best momentum stocks to invest in now. As of October 20, the stock is up roughly 124% for the year and is trading at a trailing twelve-month PE ratio of 6.62. Occidental Petroleum Corporation (NYSE:OXY) is a dividend payer and has a forward dividend yield of 0.76%, as of October 20.
Wall Street sees upside to Occidental Petroleum Corporation (NYSE:OXY). On October 19, Barclays analyst Jeanine Wai raised her price target on Occidental Petroleum Corporation (NYSE:OXY) to $84 from $75 and reiterated an Overweight rating on the shares.
Here is what Smead Capital Management had to say about Occidental Petroleum Corporation (NYSE:OXY) in its second-quarter 2022 investor letter:
“For the quarter, our best-performing stocks were Continental Resources (CLR), Merck (MRK) and Occidental Petroleum Corporation (NYSE:OXY). Despite a steep sell-off in June in the oil and gas stocks, two of our oil stocks made the quarterly list.
If you are wondering how we are outperforming the S&P 500 Index in the first half of the year, look no further than our top three performers. Occidental Petroleum (OXY), Continental Resources (CLR) and Conoco Phillips (COP) soared in value and were barely represented in the S&P 500 Index. To quote Jerry Jones, owner of the Dallas Cowboys, “We are in the first quarter on higher energy prices!””
1. Alpha Metallurgical Resources, Inc. (NYSE:AMR)
YTD Return as of October 20: 144.39%
Number of Hedge Fund Holders: 25
Alpha Metallurgical Resources, Inc. (NYSE:AMR) is an American mining company that is involved in the exploration of met and thermal coal. Analysts see material upside to Alpha Metallurgical Resources, Inc. (NYSE:AMR). This August, B. Riley analyst Lucas Pipes raised his price target on Alpha Metallurgical Resources, Inc. (NYSE:AMR) to $189 from $182 and maintained a Buy rating on the shares. On September 15, Cowen analyst Lance Vitanza raised his price target on Alpha Metallurgical Resources, Inc. (NYSE:AMR) to $225 from $191 and reiterated an Outperform rating on the shares.
As of October 20, Alpha Metallurgical Resources, Inc. (NYSE:AMR) has gained 144.39% year to date and is trading at a PE multiple of 2x. The company has a trailing twelve-month operating margin of 38.9% and has free cash flows of over $887 million. Moreover, the stock is offering a forward dividend yield of 1.04%, as of October 20, and is one of the best undervalued momentum stocks to buy now.
At the close of Q2 2022, 25 hedge funds were long Alpha Metallurgical Resources, Inc. (NYSE:AMR) and held stakes worth $553 million in the company. As of June 30, Renaissance Technologies is the top shareholder in Alpha Metallurgical Resources, Inc. (NYSE:AMR) and has stakes worth $112.6 million in the company.
You can also take a look at 10 Oil Stocks To Buy That Are Too Cheap To Ignore and 10 Most Diversified Stocks.
