3 Momentum Stocks About to Surge (TSLA, NOW, ANET)

One of my favorite ways to pick winning stocks by combining two of the most effective methods out there; the Zacks Rank and momentum. The Zacks Rank is a highly effective quantitative strategy that aggregates all analyst ratings of a stock and converts them into a simple ranking. Momentum is one of the most well documented edge and is well known as a premier anomaly for investors to utilize for successful trading.Together, these two techniques have helped me detect dozens of huge winners in the stock market and right now they have identified three highly compelling stock picks. Arista Networks (ANET), Tesla (TSLA) and ServiceNow (NOW) all boast a top Zacks Rank and an A+ technical momentum setup, leading me to believe that they may be huge winners in the coming weeks and months.Image Source: Zacks Investment ResearchTesla: Bullish Setup and Strong Buy StockTesla stock has been on a rather volatile and uncertain path this year as electric vehicle sales have slowed markedly. However, CEO Elon Musk is a master of surprising to the upside, and with humanoid robots, self-driving cars and a multitude of other side-bets within Tesla, there is always the potential for a huge run in the stock.Over the last two months, analysts have started to upgrade their earnings estimates for Tesla, and it now has a Zacks Rank #1 (Strong Buy) rating. Current quarter earnings have been revised higher by 13.4% over the last 60 days and FY24 estimates have jumped by 7.5% over the same period.But most notable is the technical chart pattern forming in Tesla stock price. After gapping higher following its quarterly earnings report, the price action has been building a highly compelling descending wedge. If the stock can trade above the $250 level, it would signal a breakout and may send the stock on another major bull run. Alternatively, if it loses the $240 level of support, the pattern will be invalidated, and investors may want to wait for another opportunity.Image Source: TradingViewArista Networks: Stock Breaking out NowArista Networks, a leading provider of high-performance networking solutions primarily for data centers and cloud computing, is another stock to watch. In addition to a Zacks Rank #1 (Strong Buy) rating, ANET also boasts strong earnings growth forecasts and sits in the top 13% of the Zacks Industry Rank.Over the next three to five years, Arista Networks is projected to increase its earnings per share by an impressive 15.3% annually. Sales are also expected to grow nicely, with estimates of a 16.3% increase this year and 17.4% next year.Arista Networks stock is also breaking out of its technical pattern today. After building out a bull flag over the last month, ANET is staging a clear breakout. If the stock can hold above the $400 level, it should be the start of another rally. However, if it reverses and loses the breakout level, it may be a sign that the stock needs more time before climbing higher.Image Source: TradingViewServiceNow: Poised for Growth and a Bullish BreakoutServiceNow is a cloud computing company that offers a suite of software solutions for IT service management, human resources, customer service, and more. These products help organizations automate routine tasks, enhance productivity, and improve employee and customer experience.ServiceNow is a rapidly growing technology company that also has a Zacks Rank #1 (Strong Buy) rating. Earnings are projected to grow 24.7% annually over the next three to five years, while sales are expected to climb 22.3% this year and 20.1% next year.Like the other two stocks, NOW stock looks to be developing a very bullish technical pattern. After beating earnings estimates and gapping higher, the price action has been consolidating into a picture-perfect bull flag. Today, NOW stock is bumping up against the upper level of resistance, and if it can break out above the $955 level, it should send the stock significantly higher. However, if it loses the $930 level of support, investors may want to hold off and wait for other opportunities.Image Source: TradingViewShould Investors Buy NOW, ANET and TSLA Shares?The current setups for Arista Networks, Tesla, and ServiceNow are quite convincing, blending strong fundamental growth with technical momentum. Each company boasts robust earnings growth forecasts, competitive market positions, and favorable chart patterns, making them solid candidates for those seeking high-potential momentum plays.For investors with an appetite for growth and momentum, NOW, ANET, and TSLA offer a balanced blend of technical and fundamental indicators suggesting strong performance ahead. As always, keeping an eye on key price levels and being a keen risk manager will be key for trading them successfully.Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Tesla, Inc. (TSLA): Free Stock Analysis Report ServiceNow, Inc. (NOW): Free Stock Analysis Report Arista Networks, Inc. (ANET): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks