Best Momentum Stock to Buy for September 25th

Zacks has identified three 'Strong Buy' ranked stocks for September 25th, citing strong momentum and positive earnings estimate revisions. Pagaya Technologies (PGY), an AI infrastructure firm, saw its current year earnings estimate increase 5.6% over 60 days and shares gain 80% in three months, while Corning (GLW) and Trip.com Group (TCOM) also experienced earnings estimate upgrades of 5.1% and 3.9% respectively, with Trip.com shares rising 30.4%. These selections underscore potential opportunities within an evolving market, particularly in sectors poised for a 'second wave' of AI-driven expansion.

Analysis

The report identifies three stocks—Pagaya Technologies (PGY), Corning (GLW), and Trip.com Group (TCOM)—as having strong bullish indicators, specifically a Zacks Rank #1 (Strong Buy) coupled with positive momentum. The primary driver for this rating is the recent upward revision in consensus earnings estimates. Pagaya, an AI financial infrastructure firm, stands out with its current-year earnings estimate increasing by 5.6% over the last 60 days, accompanied by an exceptional 80% share price gain over the past three months, significantly outperforming the S&P 500's 8.1% gain. Similarly, specialty glass manufacturer Corning saw its earnings estimate rise by 5.1%, while online travel company Trip.com experienced a 3.9% increase, with its shares appreciating 30.4% in the same three-month period. This combination of positive fundamental revisions and strong technical price performance suggests that the market is actively rewarding these companies for their improving outlooks, particularly within the trending themes of artificial intelligence and travel recovery.

Key Decisions for Investors

• Investors employing momentum-based strategies should consider these three names, as the combination of a #1 Zacks Rank and significant upward earnings estimate revisions provides fundamental validation for their strong recent price performance.
• Pagaya Technologies (PGY) warrants particular attention for growth-oriented investors due to its extreme 80% price momentum and AI-centric business model; however, the velocity of this move may also imply heightened volatility and risk.
• The strong performance of Trip.com (TCOM), with a 30.4% gain and a 3.9% earnings estimate increase, signals continued strength in the global travel sector, suggesting it may be prudent to assess or increase exposure to this industry.
• Given that all three companies have seen their current year earnings estimates increase by at least 3.9%, investors should monitor upcoming earnings reports to confirm whether operational results meet these heightened market expectations.