Even though the market closed higher yesterday, with investors shrugging off weaker-than-expected GDP data, the resurgence of COVID-19 cases due to the spread of the Delta variant continues to worry investors regarding its potential to impede economic growth. So, we think it could be wise to invest in Eaton (NYSE:ETN), Mitsubishi (MTLHY), and Vertiv (VRT) because these stocks have been able to advance consistently over the past few months and are expected to maintain their momentum, dodging short-term market volatility. So, let’s pore over these names.The resurgence of COVID-19 cases in several parts of the world due to the rapid spread of the highly transmissible COVID-19 Delta variant has been contributing to severe stock market volatility. While the stock market remained steady despite 6.5% U.S. GDP growth for the second quarter coming in weaker than the forecast of 8.4% growth, the chances of a market correction in the near term cannot be ruled out.
Amid these conditions, turning to momentum investing could be rewarding because stocks that have managed to gain momentum over the past few months might be able to maintain the same in the near to mid-term irrespective of the movement of the broader market.
Eaton Corporation plc (ETN), Mitsubishi Chemical Holdings Corporation (MTLHY), and Vertiv Holdings Co (NYSE:VRT) have been maintaining solid momentum over the past few months and should continue rallying in the coming months, dodging the market volatility. In addition, each of these names has an A grade for Momentum, along with an overall Strong Buy or Buy rating, in our POWR Ratings system. So, we think it could be wise to scoop up these stocks now.