We recently published a list of 10 Best Short-Term Stocks To Buy Right Now. In this article, we are going to take a look at where Stoneridge, Inc. (NYSE:SRI) stands against other best short-term stocks with a buying opportunity for investors.
Thrilling highs, daunting lows, and the energized chase after the next big opportunity – this thoroughly defines the current stock market. In this roller coaster ride, momentum investing is an often-seen strategy piquing the investors’ interest, which involves capitalizing on continuing existing market trends. The approach holds onto the hope that high performers in the past will continue to perform better in the future as well. A curious subset within the strategy is the price momentum stocks, whose recent downturns are seen as an opportunity as they show potential for a swift rebound.
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2025 has started with many changes, leading to complications in the U.S. stock market. The political changes, including the change in the U.S.’s stand in the Ukraine-Russia war, tariff changes leaning towards unfavorable imports, and the advent of artificial intelligence (AI) models from foreign countries, have brought down the stock value of many dominating leaders in the industry. For instance, CNBC reported a $750 billion drop in the tech industry’s Magnificent 7’s value as of March 10, 2025, owing to new tariffs. However, this decline has been attributed more to institutional selling than fundamental weaknesses. Discerning investors perceive it as a potential opportunity.
It is not just the tech giants feeling the heat. Price momentum stocks with negative one-year returns in the broader market continue to attract investors’ interest despite the fluctuations in the market. Despite the decline over the past year, these stocks have shown positive momentum in more recent periods, getting the attention of many analysts in the market. Such patterns are common in companies that underwent a restructuring, launched a promising product, or benefited from favorable market conditions. To identify these stocks, we must be willing to go deeper beyond the surface-level metrics, and hence, we present this article to you.
Before going into the article, however, investors are asked to approach the momentum investing strategy with caution. The strategy, particularly concerning stocks with recent negative returns, can be like walking a tightrope. We must consider the possibility of the factors that led to their decline, resurfacing in the future, or the short life of the recent positive momentum. Hence, in addition to the information we share in our article, thorough research alongside a well-defined exit strategy is highly recommended.
The pursuit of high returns can be tempting. Hence, investors are suggested to estimate the risk tolerance levels and long-term objectives and align them with their investment decisions. Even during tough times, the stock market presents investors with many opportunities. Discernment and prudence are required to make informed investment decisions that provide the best chance of generating an optimal return for your investment.
Our Methodology
We have used three key criteria to identify the 10 best short-term momentum stocks: a minimum decline of 30% over the past year, a minimum gain of 7.5% in the past month, and average daily trading volume of at least 100,000 shares. In addition, we have considered technical indicators focusing on stocks that recently crossed above their 20-day Simple Moving Average (SMA) and where the 20-day SMA exceeds the 200-day SMA, which signals a potential upward trend. To rank the list, we used the one-month returns. With it, we prioritized the most recent momentum performers. We have also considered the hedge fund interest from Insider Monkey’s Q4 2024 database for each stock on our list to project the level of market backing.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A technician at a workstation, soldering electronic components for vehicle tracking devices.
Stoneridge, Inc. (NYSE:SRI)
Last 52 weeks return: -70%
Last 1 month’s return: 17.33%
No. of hedge fund portfolios: 23
Stoneridge, Inc. (NYSE:SRI), based in Novi, Michigan, is a global manufacturer of advanced electrical and electronic components for automotive markets. The company develops cutting-edge systems such as digital instrument clusters and telematics solutions. It places importance on smart mobility innovations, thus competing with market giants like Bosch and Continental. The company specializes in increasing vehicle performance through intelligent safety and connectivity solutions.
Stoneridge, Inc. (NYSE:SRI) has been under pressure, shedding 70% of its value in the last 52 weeks. The decline was the result of a decrease in revenue caused by a fall in sales in all the South American end markets because of continued macroeconomic challenges. Additionally, the investors noted that the unfavorable translation of foreign currency was heavily affecting the company’s returns, causing its value to plummet.
However, a 17.33% jump over the past month points to a positive shift in sentiment. MirrorEye and the Smart 2 tachograph, the two specific growth drivers of the company during the year, have helped offset a portion of the market headwinds to drive market outperformance. Jim Zizelman, president and chief executive officer, made the following comment concerning their future endeavor.
“We are focused on overall cost structure, as evidenced by our recent actions to delay certain corporate functions and streamline our operations in manufacturing facilities, reducing costs and improving operational efficiency.”
The statement reflects Stoneridge, Inc. (NYSE:SRI)’s commitment to reducing costs, thereby increasing its performance against market headwinds. The 20-day SMA has increased slightly by 2.18%, while the 200-day SMA remains deep in negative territory at -50.32%.
The company’s stocks are backed by 23 hedge fund portfolios from Insider Monkey’s Q4 2024 database, suggesting institutional interest that may support its recent upward momentum and entry into our best short-term stocks.
Overall, SRI ranks 6th on our list of 10 Best Short-Term Stocks To Buy Right Now. While we acknowledge the potential for SRI as an investment, our conviction lies in the belief that some AI stocks hold more significant promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SRI but that trades at less than 5 times its earnings check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
