Even though major stock markets have moved higher this month due to strong third-quarter corporate earnings, inflation continues to rise, as do supply chain bottlenecks and tightening of the monetary policy. Signet Jewelers, a fundamentally sound stock that is based on momentum (NYSE:), could make a good bet. Matson (NYSE :), Tilly’s NYSE :, and TransGlobe Energy (TGA). These stocks have consistently delivered solid returns and are well-positioned to maintain their momentum in the near term.The major stock indexes’ performances have remained upbeat over the past three weeks thanks to impressive third-quarter corporate earnings. However, the S&P 500 and the slipped from their record highs yesterday. Despite overall positive market sentiment, investors’ concerns about an increase in the Consumer Price Index in September, continuing supply chain disruptions, and the possibility of the Fed tightening its monetary policy in the near term could foster significant market volatility in the near term.

Investors are also pessimistic about the prospects for global economic recovery due to stagflation occurring in China. Given this backdrop, we think investors could benefit by investing in stocks that have momentum that they can maintain irrespective of the market’s volatility. Investor optimism surrounding the momentum stocks is evident in the Invesco S&P MidCap Momentum ETF’s (XMMO) 6.8% returns over the past three months.

Signet Jewelers Limited The stocks (SIG), Matson, Inc.(MATX), Tilly’s, Inc., and TransGlobe Energy Corporations (TGA), have shown strong momentum during the past months, which they can expect to keep despite a volatile marketplace. Each stock has a Strong Buy rating according to our POWR Ratings. We believe it is a smart move to buy these stocks right away.

Continue reading on StockNews