5 Momentum Stocks to Buy for May After a Mixed April

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Wall Street saw severe volatility and almost day-to-day fluctuations in both directions in April. Finally, U.S. stock markets ended mixed last month. The S&P 500 and the Dow fell 3.2% and 0.8%, respectively. However, the Nasdaq Composite gained 0.9%.

Wall Street has seen severe volatility in April owing to the imposition of President Donald Trump’s tariffs and trade-related policies. A large section of economists and financial researchers have warned of a near-term recession too. The U.S. GDP contracted for the first time in three years in first-quarter 2025.

Nevertheless, a better-than-expected nonfarm payrolls data for April and optimism for U.S. government’s trader and tariffs related negotiations on various major economies including China will boost market participants’ confidence in risky assets like equities.

At this stage, it will be prudent to invest in stocks with a favorable Zacks Rank that have momentum in May. Five such stocks are: Sprouts Farmers Market Inc. SFM, Philip Morris International Inc. PM, Sony Group Corp. SONY, Agnico Eagle Mines Ltd. AEM and NatWest Group plc NWG.

These stocks have provided double-digit returns in the past month. Each of the stocks sports a Zacks Rank #1 (Strong Buy) at present and has a Zacks Momentum Score of A or B. You can see the complete list of today’s Zacks #1 Rank stocks here.

The chart below shows the price performance of our five picks in the past month.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

Sprouts Farmers Market Inc.

Sprouts Farmers’ focus on product innovation, emphasis on e-commerce, expansion of private label offerings and targeted marketing with everyday great pricing bodes well. SFM has been lowering operational complexity, optimizing production, improving in-stock position and updating to smaller-format stores. These efforts helped SFM post better-than-expected fourth-quarter 2024 results, wherein both the top and the bottom lines grew year over year.

Buoyed by the performance, Sprouts Farmers provided a decent 2025 view. SFM expects net sales to rise between 10.5% and 12.5% with comps anticipated to increase in the range of 4.5-6.5%. SFM’s strong sales growth, margin expansion and disciplined financial management position it as a compelling investment opportunity.

Sprouts Farmers has an expected revenue and earnings growth rate of 13.4% and 30.7%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 5.2% over the last seven days.

Philip Morris International Inc.

Philip Morris has benefited from strong pricing power and an expanding smoke-free product portfolio. PM has been making significant progress with its smoke-free transition, with products like IQOS and ZYN contributing to strong performance. In fact, PM aims to become substantially smoke-free by 2030.