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4 Momentum Stocks to Pick Despite MedTech Policy Debacle

Zacks

The scuffle over the Affordable Care Act (“ACA”) or Obamacare continues with Republicans gearing up for a last-ditch effort. This latest GOP face saver arrived last week from a motley group of GOP Senators consisting of Lindsey Graham of South Carolina, Bill Cassidy of Louisiana, Dean Heller of Nevada and Ron Johnson of Wisconsin.

Capitol Hill’s policy debacle over the fate of Obamacare or ACA seems never ending. The newest face saver from the motley group suggests the combined funding for Medicaid and Obamacare’s subsidies into a block grant. They also propose to allow states more freedom in designing their own healthcare plans.

Amid this uncertainty, searching for investment options that are not perturbed by market gyrations is a tough call.

Zacks Counsel


We believe that investors can earn handsome profits by extrapolating the current bullish trends of the market into the future. Henceforth, seeking refuge on momentum investment strategy is a meaningful investment bet at this moment.

However, picking the right momentum stocks may baffle even seasoned investors, who are planning to enter the uncharted world of jam-packed trades.

Here, at Zacks, we use our Style Score System to single out stocks which can grant favorable returns and are not affected by market conditions.

The Zacks Momentum Style Score indicates the best time to buy a stock and take advantage of its momentum with a highest probability of success.

Our research shows that stocks with a Momentum Score of A, when combined with a Zacks Rank #1 (Strong Buy) or 2 (Buy), offer the best upside potential for the short term.

Our Picks

The Cooper Companies Inc. COO

Cooper Companies, which is quickly rapidly into an investor favorite, posted earnings of $2.64 per share in the most recent quarter, surpassing the Zacks Consensus Estimate by 2.3%. Since then, positive estimate revisions have been pouring in. The company’s current-quarter Zacks Consensus Estimate has increased 9 cents.

This revision activity has propelled the stock to a Zacks Rank #2, and its recent gains have helped it earn an A grade for Momentum. Cooper Companies’ shares have increased more than 41% year to date. The company’s impressive growth prospects will continue to push the stock higher. Looking ahead, Cooper Companies is poised to benefit even from its leading position in the market of specialty lenses, supported by highly exclusive portfolio which includes Biofinity and Clariti. You can see the complete list of today’s Zacks #1 Rank stocks here.

Mazor Robotics Ltd. MZOR

This Israel-based developer of robotic technology and products reported loss of 16 cents per share in the last quarter, narrower than the Zacks Consensus Estimate of a loss of 25 cents. Since then, the company has garnered positive estimate revisions. Its Zacks Consensus Estimate for the current quarter improved by more than 6 cents.

As a result, the latest figures have propelled the stock to a Zacks Rank #2. It has also gained an A for Momentum. Earlier this month, the company amended its strategic partnership with Medtronic plc (MDT). We feel that the amendment, along with growing installations of Mazor Systems, will provide further impetus to the momentum of the stock.

ICON plc. ICLR

Global provider of drug development solutions and services to the pharmaceutical, biotechnology and medical device industries, ICON plc, has benefitted from the steady growth in this space. The company recently reported earnings of $1.31 per share, surpassing the Zacks Consensus Estimate of $1.30. Quarterly revenues of $431 million were higher than the Zacks consensus estimate of $430 million and soared from $411 million in the year-ago period.

Within the last two months, ICON witnessed nine positive revisions in its current-quarter earnings estimates, which has lifted its Zacks Consensus Estimate by seven cents. The company’s stock has increased more than 48% higher year to date. ICON is now a Zacks Rank #1 (Strong Buy) with A grade for Momentum and Growth in our Style Scores system.

Medpace Holdings, Inc. MEDP

Medpace Holdings is proving to be investors favorite pick in recent times. The company delivered earnings of 38 cents per share in the most recent quarter, surpassing the Zacks Consensus Estimate by 26.7%. Since then, positive estimate revisions have been pouring in and now the company’s current-quarter Zacks Consensus Estimate has more than 9 cents.

This revision activity has propelled the stock to a Zacks Rank #1, and its recent gains have helped it earn an A grade for Momentum. Medpace Holdings’ shares have gained 8% over the past three months. The company’s impressive growth prospects will continue to push the stock higher. Looking ahead, Medpace Holdings is poised to benefit from its leading role in the clinical contract research organization space, focused on cardiology, endocrinology, and metabolic disease.

Bottomline

It seems to be the correct time to go by Wall Street’s often used buzz word, “Buy High and Sell Higher”. Given that a substantial section of investors favor winning stocks with the belief that they can soar higher, it is the right time to hitch the momentum ride.

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