U.S. stock markets witnessed an impressive rally in 2024 after an astonishing bull run in 2023. Despite fluctuations, the bull run continued in the first month of 2025. Market participants remained concerned about the Trump administration’s tariffs and trade-related policies and their impact on U.S. economic growth, especially on the inflation rate.
Moreover, a relatively hawkish statement by Fed Chairman Jerome Powell in a post-FOMC meeting in January regarding sticky inflation raised questions about the magnitude of interest rate cut this year. Additionally, prolonged geopolitical conflicts in the Middle-East and other parts of Asia and Europe pose concerns.
However, a handful of stocks are expected to maintain their momentum in February, too. Five such stocks with a favorable Zacks Rank are: Amphenol Corp. APH, Boston Scientific Corp. BSX, Annaly Capital Management Inc. NLY, Pinnacle Financial Partners Inc. PNFP and First Horizon Corp. FHN.
Top 5 Momentum Picks for January
These five stocks have strong potential for February and have seen positive earnings estimate revisions in the last seven days. Each of the stocks sports a Zacks Rank #1 (Strong Buy) at present and has a Zacks Momentum Score of A. You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart below shows the price performance of our five picks in the past month.
Zacks Investment Research
Image Source: Zacks Investment Research
Amphenol Corp.
Amphenol has been benefiting from a diversified business model. It expects first-quarter 2025 sales in the defense market to increase moderately on a sequential basis. APH’s strong portfolio of solutions, including high-technology interconnect products, is a key catalyst. Expanding spending on both current and next-generation defense technologies bodes well for APH’s top-line growth.
Apart from Defense, APH’s prospects ride on strong demand for its solutions across Commercial Air, Industrial and Mobile devices. For first-quarter 2025, Amphenol expects a mid-to-high single-digit range increase in Commercial Air sales. APH’s diversified business model lowers the volatility of individual end markets and geographies. Strong cash flow generating ability is noteworthy.
Amphenol has an expected revenue and earnings growth rate of 22.4% and 24.9%, respectively, for the current year. The Zacks Consensus Estimate for the current-year earnings has improved 1.7% over the last seven days.
Boston Scientific
Boston Scientific is seeing strength across target markets despite macroeconomic concerns, currency headwinds and related cost inflation. Strong worldwide demand for BSX’s MedSurg and Structural Heart lines, traction in United States and outside for its the next-generation WATCHMAN FLX and FLX Pro, as well as contribution from accretive acquisitions are important drivers.
BSX’s Pain and Brain franchisees are expected to gain solid traction in 2025 banking on strong execution of core growth strategies. The Electrophysiology arm of BSX continues to gain momentum on the sustained adoption of FARAPULSE PFA.
Boston Scientific has an expected revenue and earnings growth rate of 13.2% and 13.6%, respectively, for the current year. The Zacks Consensus Estimate for the current-year earnings has improved 2.9% over the last seven days.
Annaly Capital Management Inc.
Annaly Capital Management’s fourth-quarter 2024 results benefit from improving average yield on interest-earning assets. NLY’s prudent asset selection will continue to drive performance in the upcoming period. The enhancement of capabilities across NLY’s core housing finance strategy is a positive.
NLY enjoys a diverse funding profile in the industry. NLY’s investments in Agency MBS will offer downside protection. Moreover, NLY’s solid MSR platform will gain from a low-prepayment environment.
Annaly Capital Management has an expected revenue and earnings growth rate of more than 100% and 4.1%, respectively, for the current year. The Zacks Consensus Estimate for the current-year earnings has improved 1.4% over the last seven days.
Pinnacle Financial Partners Inc.
Pinnacle Financial Partners operates as the bank holding company for Pinnacle Bank, which provides various banking products and services to individuals, businesses, and professional entities in the United States.
PNFP provides a full range of banking, investment, trust, mortgage and insurance products and services designed for businesses and their owners and individuals interested in a comprehensive relationship with their financial institution. PNFP accepts various deposits, provides treasury management services and merchant card acceptance services.
Pinnacle Financial Partners has an expected revenue and earnings growth rate of 15.9% and 13.9%, respectively, for the current year. The Zacks Consensus Estimate for the current-year earnings has improved 0.8% over the last seven days.
First Horizon Corp.
First Horizon’s strong business mix of regional and specialty banking franchises is likely to drive organic growth. FHN operates through Regional Banking and Specialty Banking segments. FHN offers general banking services for consumers, businesses, financial institutions, and governments.
FHN accepts deposits, provides underwriting services for bank-eligible securities and other fixed-income securities by financial subsidiaries, sells loans and derivatives, financial planning, and offers investment and financial advisory services. The strategic buyouts have helped FHN to expand its footprint into key markets. FHN’s net interest income and net interest margin are likely to be aided by the Fed’s interest rate cuts.
First Horizon has an expected revenue and earnings growth rate of 5.5% and 7.7%, respectively, for the current year. The Zacks Consensus Estimate for the current-year earnings has improved 0.6% over the last seven days.
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