Amid current market volatility, investors are increasingly relying on momentum stocks because they have been able to generate significant returns over the past few months and are expected to continue their momentum in the near-term. So, we think it could be beneficial to bet on CNOOC (NYSE:CEO), O'Reilly Automotive (NASDAQ:ORLY), and Corning Incorporated (NYSE:GLW) because they possess solid momentum features. Read on. Even though the U.S. economy is recovering quickly from pandemic damages, several parts of the world are still dealing with a resurgence of COVID-19 cases. The U.S. markets are exhibiting significant volatility as investors weigh the Biden administration’s tax hike proposal and several other issues. However, corporate earnings have so far been encouraging. .
So, in this environment, investors are increasingly focusing on momentum investment strategies because these stocks that have managed to generate significant returns over the past few months amid market volatility and could continue to do so in the near-term. Investors’ interest in the momentum stocks is evidenced by iShares MSCI USA Momentum Factor ETF’s (MTUM) 10.1% returns over the past month versus SPDR Portfolio S&P 500 Growth ETF’s (SPYG) and SPDR Portfolio S&P 500 Value ETF’s (SPYV) 8% and 2.7% gains, respectively over the same period.
CNOOC Limited (CEO), O'Reilly Automotive, Inc. (ORLY), and Corning Incorporated (GLW) have experienced decent momentum over the past few months and should keep rallying. So, it could be wise to scoop up these stocks now.