Best Momentum Stocks to Buy for September 25th

Zacks highlighted Bread Financial (BFH), Seadrill (SDRL), and Reliance (RS) as Zacks Rank #1 momentum stocks. Current-year consensus EPS estimates rose 5.7% for BFH, 27.0% for SDRL, and 13.6% for RS over the past 60 days; BFH shares gained 33.8% over six months versus an 18.9% S&P 500 increase. The report is favorable stock-specific analyst commentary but is unlikely to have broad market impact.

Analysis

This is a low-information momentum screen rather than a fundamental catalyst, so the likely near-term effect is limited incremental retail flow rather than durable institutional repricing. The relevant signal is the direction of earnings revisions, but it requires validation against underlying drivers at the next reporting cycle; absent guidance changes or estimate dispersion narrowing, the signal should not justify chasing recent relative strength.

BFH has the most asymmetric downside to a benign momentum narrative: earnings revisions can reverse quickly if late-stage delinquencies, net charge-offs, or funding costs reaccelerate. A soft-landing credit backdrop would support operating leverage over the next 1-3 months, but its valuation should remain capped versus payments peers such as COF and SYF because private-label credit is more cyclical and more exposed to retailer-partner concentration.

SDRL is a higher-beta expression of sustained offshore capex, but the key variable is contracted backlog conversion and day-rate durability, not spot oil alone. RS offers the cleaner quality cyclical exposure: its service-center model can protect margins during stable pricing, yet steel price deflation or industrial-demand disappointment would quickly invalidate revisions. The article's promotional reference to QBTS has no stated connection to the three-company screen and should be treated as marketing noise, not an AI/quantum catalyst.

Key Decisions for Investors

• No new position solely on this publication; require next-quarter guidance and consensus revisions to confirm before acting. Treat any same-day retail-driven strength as liquidity, not a fundamental entry signal.
• Watch BFH for a tactical 1-3 month long only if management guides to stable-to-improving net charge-offs and funding costs; pair against SYF to isolate execution. Exit if charge-off guidance rises or deposit/funding spreads widen, as the downside can exceed the benefit from modest estimate revisions.
• Prefer a 3-6 month long RS versus a broad steel proxy such as SLX only after confirming stable shipment volumes and gross-margin resilience. Falsify on renewed steel-price declines or a material industrial-production slowdown; avoid adding after momentum spikes without volume confirmation.
• Use SDRL as a conditional energy-services watch rather than a standalone momentum long: initiate only on backlog/day-rate disclosure that supports forward EBITDA visibility, preferably paired long SDRL/short OIH to reduce sector-beta exposure. A sustained Brent decline and lower tender activity would invalidate the thesis.