Increasingly, investors have been relying on momentum investment strategies to dodge current market volatility. As such, we think it could be wise to bet on SS&C Technologies (SSNC), Whirlpool (WHR), Vertiv (VRT), and Penske Automotive (PAG). They have each generated significant returns over the past few months and are expected to maintain their momentum in the near term. So, let’s look closer at these names.The U.S. economy continues to recover thanks to a fast-paced, nationwide vaccination program, impressive fiscal stimulus, and monetary policy support. However, rising concerns about the potential for inflation, President Biden’s tax proposal, and the resurgence of COVID-19 cases in several countries, are driving significant market volatility.
Against this backdrop, investors are focusing on momentum investing. This is because after gaining momentum a stock usually maintains it for some time irrespective of market conditions. Investors’ interest in momentum stocks is evidenced by iShares MSCI USA Momentum Factor ETF’s (MTUM) 8.1% gains over the past six months.
So, we think investors looking to dodge market volatility should consider betting on SS&C Technologies Holdings, Inc. (SSNC), Whirlpool Corporation (NYSE:WHR), Vertiv Holdings Co (NYSE:VRT), and Penske Automotive Group, Inc. (NYSE:PAG). These stocks have already gained momentum, which is expected to continue for some time based on the strength in their financials.