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How to Find the Hottest Stocks This Summer

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  • (0:45) - The Hottest Industries of Summer 2021
  • (5:00) - Tracey’s Top Picks To Keep On Your Radar
  • (19:45) - Episode Roundup: AMH, APLE, BAC, HVT, NDLS
  •                Podcast@Zacks.com

 

Welcome to Episode #273 of the Zacks Market Edge Podcast.

Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.

This week, Tracey is going solo to talk about what sectors and industries have the hottest stocks and how you can find them.

Even though the popular technology and growth stocks have cooled in 2021, that doesn’t mean there aren’t stocks with momentum.

Au contraire.

Investors have to look outside of technology and social media to find 2021’s hottest stocks.

Screening for 2021’s Momentum Stocks

Many of the big 2020 winners have cooled considerably in 2021 so that they are no longer trading just a few percent near or at their 52-week highs.

To find those that still DO have momentum, screen for stocks within 2% of their 52-week highs.

These will be the hidden gems that many investors are overlooking as they wait for their favorite stock to bounce back.

5 Stocks Breaking Out to Start the Summer

1.       American Homes for Rent (AMH - Free Report) is a REIT that owns over 53,000 single family homes in 22 states. Shares are at new highs in 2021, gaining 27.5% year-to-date. Earnings are expected to rise 10.3% in 2021 and 10.9% in 2022. It trades with a forward P/E of 29.7, however. Is it priced for perfection?

2.       Apple Hospitality REIT, Inc. (APLE - Free Report) is the OTHER apple. It owns 232 upscale hotels in 35 states. Year-to-date shares are up 26.6%. Hotel occupancy is on the upswing, with April occupancy at 68%. All of its hotels are now open and it was cash flow positive in the first quarter. But with a forward P/E of 24, is all the good news priced in?

3.       Bank of America (BAC - Free Report) gets no respect. Shares are up 41.5% year-to-date and are hitting new 5-year highs. Yet it still has a forward P/E of just 14 and pays a dividend, currently yielding 1.7%. Is it too late to get into the big banks?

4.       HAVERTY (HVT - Free Report) is a furniture retailer with showrooms in 16 states in the south and Midwest. Furniture is hot thanks to the strong housing market and the desire to “nest” even on the reopen. Shares have soared 70% year-to-date but with earnings expected to jump 113% in 2021, they trade with a forward P/E of just 11.4.

5.       Noodles & Company (NDLS - Free Report) saw momentum accelerate in the first quarter on strong demand for its cauliflower gnocchi. It has recently launched its new tortelloni product and expects strong demand. Earnings are back in the positive in 2021 and are expected to jump another 55% in 2022. Shares are up 66% year-to-date and are at new 52-week highs but aren’t yet back to 2018 highs. Are restaurant stocks the place to be in the second half of 2021?

What else do you need to know about finding the hot momentum stocks?

Tune into this week’s podcast to find out.

Bitcoin, Like the Internet Itself, Could Change Everything

Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.

Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.

See 3 crypto-related stocks now >>