Best Momentum Stocks to Buy for September 22nd

Zacks has identified Dorman Products (DORM), Red River Bancshares (RRBI), and Newmont Corporation (NEM) as top 'buy rank' stocks exhibiting strong momentum characteristics for September 22nd. All three companies hold a Zacks Rank #1, with significant upward revisions in current year earnings estimates over the last 60 days (DORM +11.5%, RRBI +5.5%, NEM +14.8%), and have substantially outperformed the S&P 500's 10.6% gain over the past three months, with share price increases of 29.2%, 13.2%, and 33.3% respectively.

Analysis

Zacks has identified three stocks across distinct sectors—Dorman Products (DORM) in auto parts, Red River Bancshares (RRBI) in regional banking, and Newmont Corporation (NEM) in precious metals—that exhibit a combination of strong fundamental outlook and positive price momentum. All three companies hold a Zacks Rank #1 ('Buy') and have seen significant upward revisions to their consensus earnings estimates for the current year over the past 60 days: Newmont leads with a 14.8% increase, followed by Dorman at 11.5% and Red River at 5.5%. This positive revision in analyst sentiment is coupled with strong market performance, as each stock has substantially outpaced the S&P 500's 10.6% advance over the last three months. Newmont and Dorman recorded share price gains of 33.3% and 29.2% respectively, both earning a top Momentum Score of 'A', while Red River Bancshares, with a 13.2% gain, holds a Momentum Score of 'B', indicating its selection is based on a blend of improving fundamentals and recent outperformance.

Key Decisions for Investors

• Investors employing momentum-based strategies should consider DORM, RRBI, and NEM, as their strong price performance is validated by recent, significant upward revisions in analyst earnings estimates.
• These selections offer a way to gain diversified exposure to the momentum factor, spanning the automotive aftermarket, regional banking, and precious metals sectors.
• Given the momentum-driven nature of this thesis, it is critical to monitor for any slowdown in share price appreciation or negative revisions to earnings consensus, which would undermine the primary buy signals.