Dell & 2 Momentum Stocks to Buy Now for Explosive Upside

Zacks screened more than 7,743 stocks down to 19 Driehaus-style momentum candidates with a Zacks Rank #1 and Momentum Score of A or B, highlighting Dell, KE Holdings and Vita Coco. Dell’s average four-quarter earnings surprise is 29% and its current-year earnings growth forecast is 146%; KE Holdings and Vita Coco are projected to grow earnings 74.2% and 64.7%, respectively. The article presents the names as potential momentum opportunities amid historically weak and volatile September trading, but does not report new company-specific results or guidance.

Analysis

This is a low-information, screen-driven catalyst rather than new fundamental evidence; its most likely near-term effect is incremental retail flow, not institutional estimate revision. DELL is the only name where momentum can plausibly be reinforced by a liquid, investable secular narrative, but its valuation is increasingly sensitive to AI-server revenue converting into sustainable gross-margin and working-capital improvement. A beat driven by low-margin infrastructure volume or deferred revenue recognition would leave the momentum signal vulnerable despite headline EPS growth.

BEKE has the highest macro beta of the group: a durable rerating requires Chinese existing-home transaction recovery and stable take rates, not merely earnings beats against conservative estimates. Any renewed property-support measures could create a 1-3 month upside squeeze in BEKE and peers such as FUTU and YUMC via China-risk sentiment, but weakening resale volumes, mortgage demand, or RMB pressure would quickly reverse it. COCO is a cleaner consumer execution story, yet its smaller float and distribution concentration make it susceptible to post-earnings air pockets; coconut-water input costs, freight, and promotional spending matter more than technical screens for 6-18 month returns.

Contrarian view: the screen may be late-cycle confirmation rather than discovery. September volatility raises factor-crowding risk, and a broad risk-off move typically punishes high-beta momentum baskets irrespective of company quality. The better signal is whether forward EPS estimates rise after the next results: price momentum without estimate breadth usually fades within one quarter.

Key Decisions for Investors

• Maintain a tactical long DELL only on a pullback toward its 50-day moving average or after confirmation that next-12-month EPS estimates rise following earnings; target 10-15% upside over 1-3 months, with a stop on a weekly close below the 50-day average plus AI-server margin or working-capital guidance deterioration.
• Avoid chasing BEKE on technical strength; instead, use a 1-3 month event-driven long only if high-frequency China resale transaction data and mortgage-originations improve for 3-4 consecutive weeks. Size modestly given policy and ADR/RMB risk; exit on a material decline in transaction volumes or renewed developer-stress headlines.
• Watch COCO for a long entry after its next earnings release only if volume growth accelerates while gross margin holds despite commodity and freight costs. A 12-18 month position can work if distribution expansion is translating into repeat purchases, but treat a gross-margin miss or higher promotional-spend guidance as thesis failure.
• For portfolio hedging, pair any incremental DELL exposure with a short SMH or IGV beta hedge during the September volatility window; this isolates Dell-specific estimate momentum from a broad AI-capex or duration-factor derating.