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 – Get Rating), Whirlpool Corporation (WHR – Get Rating), Vertiv Holdings Co (VRT – Get Rating), and Penske Automotive Group, Inc. (PAG – Get Rating). These stocks have already gained momentum, which is expected to continue for some time based on the strength in their financials.
SS&C Technologies Holdings, Inc. (SSNC – Get Rating)
SSNC is a provider of software and software-enabled services. The company owns and operates technology stacks across securities accounting, front-to-back-office operations, performance and risk analytics, regulatory reporting, and healthcare information processes. It serves various markets, including institutional asset and wealth management, healthcare, financial advisory and financial institutions markets.
The company’s $1.23 billion in net sales for its fiscal year 2021 first quarter, ended March 31, represents a 5.1% year-over-year rise. Its operating income has increased 23% year-over-year to $261.90 billion. Also, its EPS has increased by 75.7% year-over-year to $0.65.
For the current quarter, ending June 30, , analysts expect SSNC’s EPS to increase 9.6% year-over-year to $1.14. Also, it surpassed consensus EPS estimates in each of the trailing four quarters. Its revenue is expected to increase by 7.1% year-over-year to $1.21 billion for the quarter ending September 30, 2021.
On April 29, SSNC launched SS&C Chorus, a newly integrated intelligent automation platform that is designed to increase straight-through processing, reduce operational risk, and enhance digital customer journeys. The company’s consumer base is expected to increase on the back of this innovative offering. The stock has gained 28.8% over the past year to close yesterday’s trading session at $72.82. It has also gained 4.9% over the past three months and 12.1% over the past six months.
It’s no surprise that SSNC has an overall A rating, which equates to Buy in our POWR Ratings system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting. The stock has an A grade for Momentum, and a B grade for Quality, Growth, Value, Sentiment and Stability. Get all SSNC’s ratings here.
SSNC is ranked #2 out of 59 stocks in the Software- Business industry.
Click here to check out our Software Industry Report for 2021
Whirlpool Corporation (WHR – Get Rating)
WHR manufactures and markets home appliances and related products. The company operates through four geographical segments—North America, Europe, Middle East and Africa (EMEA), Latin America, and Asia. Its products include refrigerators, laundry appliances, cooking and other small domestic appliances, and dishwasher appliances.
For its fiscal year 2021 first quarter, ended March 31, WHR’s operating income increased 23.9% year-over-year to $5.40 billion. The company’s net earnings came in at $433 million, which represents an 181.2% year-over-year increase. Its EPS was $6.81, up 178% year-over-year.
Analysts expect the company’s EPS and revenue to increase 175.8% and 41.5%, respectively, year-over-year to $5.93 and $5.05 billion, , for the current quarter, ending June 30, 2021. Also, WHR surpassed the Street’s EPS estimates in each of the trailing four quarters.
In April, WHR authorized an additional $2 billion share repurchase program. It also declared a $1.40 quarterly dividend, payable on June 15. This reflects the company’s confidence in its ability to continue to generate strong levels of cash. The stock has…
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