Best Momentum Stocks to Buy for May 21st

Zacks Investment Research highlights monday.com Ltd. (MNDY), Kinross Gold Corporation (KGC), and Healthcare Services Group, Inc. (HCSG) as top-ranked momentum stocks, noting recent increases in their respective earnings estimates. Additionally, Zacks is promoting a new top semiconductor stock pick, citing its potential for significant growth due to the expanding semiconductor market driven by AI, Machine Learning, and IoT, projecting the global semiconductor manufacturing market to grow from $452 billion in 2021 to $803 billion by 2028.

Analysis

Zacks Investment Research has identified three companies—monday.com Ltd. (MNDY), Kinross Gold Corporation (KGC), and Healthcare Services Group, Inc. (HCSG)—as exhibiting strong momentum characteristics, each holding a Zacks Rank #1 (Strong Buy). For monday.com, a software applications company, the Zacks Consensus Estimate for current year earnings has risen by 6.5% over the past 60 days. Kinross Gold, a gold-mining entity, has seen a more substantial increase, with its current year earnings consensus estimate climbing 41.1% in the same period. Healthcare Services Group, providing management and administrative services, experienced a 7.1% increase in its next year earnings consensus estimate over the last 60 days; notably, HCSG's shares have appreciated 41.2% over the last three months, contrasting with the S&P 500’s 0.3% decline, and it holds a Momentum Score of B. The report also highlights a significant growth projection for the global semiconductor manufacturing market, anticipated to expand from $452 billion in 2021 to $803 billion by 2028, driven by demand in Artificial Intelligence, Machine Learning, and the Internet of Things, alongside promoting an unnamed semiconductor stock positioned for substantial growth.

Key Decisions for Investors

• Investors seeking momentum plays may consider monday.com Ltd., Kinross Gold Corporation, and Healthcare Services Group, Inc. given their Zacks Rank #1 status and recent positive revisions in earnings estimates.
• The substantial 41.1% upward revision in Kinross Gold's current year earnings estimate warrants particular attention for those bullish on the gold sector or seeking companies with strong earnings forecast improvements.
• Healthcare Services Group's significant share price outperformance of 41.2% against a declining S&P 500 over the past three months, coupled with its positive earnings outlook, suggests it could be a candidate for portfolios focused on relative strength and growth in the services sector.
• The projected robust growth in the semiconductor industry from $452 billion to $803 billion by 2028 suggests long-term investors should monitor opportunities within this sector, particularly those related to AI and IoT demand.