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Wells Fargo Likes Momentum Plays Alphabet, Ford, Marriott, BofA

'Momentum stocks offer an attractive risk/reward into year-end,' Wells Fargo analysts said.
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Now is a good time for momentum stocks, such as Alphabet  (GOOGL) - Get Free Report, Ford  (F) - Get Free Report, Marriott  (MAR) - Get Free Report and Bank of America  (BAC) - Get Free Report, according to Wells Fargo.

“Contrary to the start of 2021, we now think high momentum stocks offer an attractive risk/reward into year-end,” Wells Fargo analysts, led by Christopher Harvey, wrote in a commentary.

“The Mo' style has taken on more cyclical characteristics, and valuations have become more attractive. Importantly for short-term tactical traders, Mo' is working in our view," they wrote.

“The iShares MSCI USA Momentum Factor ETF  (MTUM) - Get Free Report is outpacing the market by about 4 percentage points over the last three months.”

Indeed, MTUM has climbed 9% over that period, compared to 5% for the S&P 500.

Wells Fargo compiled a list of stocks with a combination of high 12-month and low one-month momentum that the bank rates overweight. 

In addition to the four above, they include Bath & Body Works  (BBWI) - Get Free Report, Expedia Group  (EXPE) - Get Free Report, MGM Resorts  (MGM) - Get Free Report, Estee Lauder  (EL) - Get Free Report, Sysco  (SYY) - Get Free Report, Devon Energy  (DVN) - Get Free Report, Capital One  (COF) - Get Free Report and Goldman Sachs  (GS) - Get Free Report.

The list also highlights  PNC Financial Services  (PNC) - Get Free Report, Agilent Technologies  (A) - Get Free Report, Johnson Controls  (JCI) - Get Free Report, Applied Materials  (AMAT) - Get Free Report, Hewlett Packard Enterprise  (HPE) - Get Free Report, Intuit INTU, Kimco Realty  (KIM) - Get Free Report, and Exelon  (EXC) - Get Free Report.

Friday’s laggards Apple AAPL and Amazon AMZN don’t make the list. 

As for Alphabet, several analysts raised their price targets for the technology giant Wednesday, after it beat Wall Street's third-quarter earnings expectations.

Alphabet said revenue rose by 41% to $65.12 billion, exceeding an estimate of $63.34 billion predicted by analysts surveyed by Refinitiv.