Momentum investors are always looking to ride bullish trends where buyers are in control, with the strategy particularly potent in 2023 amid the market’s turnaround.
Still, volatility has crept higher over the last month, causing many pockets of the market to lose steam and face unfavorable price action.
But the momentum certainly hasn’t disappeared for all, including Apollo Global Management APO, Vistra VST, and Kinsale Capital Group KNSL. Below is a chart illustrating the performance of each over the last month, with the S&P 500 blended in as a benchmark.
Image Source: Zacks Investment Research
In addition to favorable price action, all three sport a favorable Zacks Rank and Momentum Style Scores of “A,” with the former reflecting optimism among analysts. Let’s take a closer look at each.
Apollo Global Management
Apollo Global Management is a high-growth, global alternative asset manager. The stock is currently a Zacks Rank #2 (Buy), with earnings expectations creeping higher across the board.
Image Source: Zacks Investment Research
Better-than-expected quarterly results in its latest release helped provide shares momentum, with the company exceeding the Zacks Consensus EPS Estimate by 3% and posting a 1.5% revenue beat. Keep an eye out for the company’s upcoming quarterly release expected in early November, as the Zacks Consensus EPS Estimate of $1.78 suggests a 33% improvement from the year-ago period.
Interestingly enough, APO shares have been long-time outperformers, delivering a 19% annualized return over the last decade vs. the S&P 500’s impressive 12.3%.
Image Source: Zacks Investment Research
Vistra
Vistra is a holding company that engages in the provision of electricity and power generation. The stock sports the highly-coveted Zacks Rank #1 (Strong Buy), with earnings expectations increasing across nearly all timeframes.
For those interested in income, VST rewards its shareholders via a dividend currently yielding 2.5% annually. And the company has shown a notable commitment to increasingly rewarding shareholders, boasting a 13% five-year annualized dividend growth rate.
Image Source: Zacks Investment Research
A focus on operational efficiencies, risk management, and strong retail performance helped drive the company’s latest better-than-expected quarterly results, with the company posting a 25% EPS beat and snapping a streak of negative surprises.
Regarding the mentioned release, adjusted EBITDA from ongoing operations improved by $252 million from the year-ago period, primarily driven by higher energy margins achieved through the company’s hedging strategy.
As shown below, shares got a nice boost post-earnings following the release.
Image Source: Zacks Investment Research
Kinsale Capital Group
Kinsale Capital, a current Zacks Rank #2 (Buy), offers various insurance and reinsurance products primarily through Commercial and Personal markets. Analysts have taken their earnings expectations modestly higher across all timeframes.
The company’s growth profile is impossible to ignore, with earnings forecasted to climb 50% on 45% higher revenues in its current year (FY23). Growing net premiums have been a solid contributor to the top line thanks to the company’s established presence and high retention rates within contract renewals.
Image Source: Zacks Investment Research
In addition, KNSL’s 29.1% trailing twelve-month return on equity is worth highlighting, above the respective Zacks Insurance industry average and reflecting improving efficiency in generating profits from existing assets.
Image Source: Zacks Investment Research
Bottom Line
Volatility has recently crept higher, with many pockets of the market facing sideways or adverse price action over the last month.
However, the momentum hasn’t stopped for all, including Apollo Global Management APO, Vistra VST, and Kinsale Capital Group KNSL, with shares of each cruising higher over the last month and delivering market-beating returns.
In addition to positive momentum, all three stocks sport a favorable Zacks Rank, reflecting optimism among analysts.
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Apollo Global Management Inc. (APO) : Free Stock Analysis Report
Kinsale Capital Group, Inc. (KNSL) : Free Stock Analysis Report
Vistra Corp. (VST) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
