CHICAGO, March 13, 2011 /PRNewswire/ -- Today, Zacks Investment Ideas feature highlights Features: CARBO Ceramics (NYSE: CRR), Priceline, Inc. (Nasdaq: PCLN), Green Mountain Coffee (Nasdaq: GMCR) and ProShares Ultra Silver (NYSE: AGQ).
Momentum Stocks Burning Up the Charts
In the trading floor at the Chicago Board of Trade a few years ago, it wasn't uncommon to see big group of traders rolling off the floor after a few early-morning rallies. These guys would assume that after two legs higher, whatever market they were trading was already gassed out. But that kind of sentiment, that a market is tapped out and can't go any higher is a bullish signal. Needless to say, those early gains were frequently followed by the biggest move of the day that came just as nobody was expecting it. The moral of the story is that prices can always go higher, even if they already seem quite high.
So on that note, let's shift gears and take a look at our top 4 momentum stocks that have been posting huge gains over the last 6 months.
Top 4 Momentum Stocks
CARBO Ceramics (NYSE: CRR) is a momentum high flyer of huge proportions, recently blasting higher into a new all-time high after reporting an impressive Q1 earnings surprise. Even though the valuation picture is running a bit hot, the company has four consecutive earnings surprises and a bullish growth projection, enough to keep the bulls charging higher. Take a look below.
Priceline, Inc. (Nasdaq: PCLN) has been one of the hottest momentum stories of the last year, defying skeptics with a meteoric rise to an all-time high of $561. Yeah, the forward P/E of 27X is a premium to the industry average, but with sharp earnings growth in hand, the momentum investors of the world expect more good things from this travel deals provider. To boot, the stochastic below the chart says shares are oversold, take a look below.
Green Mountain Coffee (Nasdaq: GMCR) is a valuation felon, currently trading with a forward P/E of 52X, more than 3X the industry average. But so what, momentum investors could care less, and they have been getting paid handsomely to do so, with GMCR recently surging higher into a new all-time high on another strong quarter. The valuation suggests a pending correction, but remember, the market can stay irrational longer than most people can stay solvent. Check out the three gaps higher below.
Brace for impact momentum traders, this next pick is hotter than Tiger Woods at a pancake house. ProShares Ultra Silver (NYSE: AGQ) is a double long silver ETF that tracks cash silver prices. With a 4-month range of $117 to $382, this is both an endorsement and cautionary tale of the kind of action you can find in a momentum high flyer. Take a look at the wild price action below.
Momentum Stocks-Proceed With Caution
So as you can see, there is plenty of spicy action in some of these momentum high flyers. Names like these don't necessarily represent your largest holdings, but having smaller allocations to higher-beta stocks gives you a chance of snagging a big winner.
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