5 Momentum Stocks to Buy for February Amid Volatility

Market Overview - U.S. stock markets experienced a significant rally in 2024 following a strong bull run in 2023, with continued momentum into January 2025 despite fluctuations [1] - Concerns persist regarding the Trump administration's tariffs and trade policies, particularly their effects on U.S. economic growth and inflation [1] Federal Reserve Insights - Fed Chairman Jerome Powell's hawkish remarks in January raised questions about the extent of interest rate cuts for the year, amidst ongoing geopolitical conflicts in the Middle East and other regions [2] Stock Performance and Recommendations - Five stocks are highlighted for their potential to maintain momentum in February, all holding a Zacks Rank 1 (Strong Buy) and a Zacks Momentum Score of A: Amphenol Corp. (APH), Boston Scientific Corp. (BSX), Annaly Capital Management Inc. (NLY), Pinnacle Financial Partners Inc. (PNFP), and First Horizon Corp. (FHN) [3][4] Amphenol Corp. (APH) - Amphenol is benefiting from a diversified business model, with expected first-quarter 2025 sales in the defense market showing moderate sequential growth [6] - The company anticipates a mid-to-high single-digit increase in Commercial Air sales for the same period, supported by strong cash flow generation [7] - Expected revenue and earnings growth rates for the current year are 22.4% and 24.9%, respectively, with a 1.7% improvement in the Zacks Consensus Estimate for earnings over the last week [8] Boston Scientific Corp. (BSX) - Boston Scientific is experiencing strength across its target markets despite macroeconomic challenges, with strong demand for its MedSurg and Structural Heart lines [9] - The company expects solid traction in its Pain and Brain franchises and continued momentum in its Electrophysiology arm [10] - Expected revenue and earnings growth rates for the current year are 13.2% and 13.6%, respectively, with a 2.9% improvement in the Zacks Consensus Estimate for earnings over the last week [10] Annaly Capital Management Inc. (NLY) - Annaly's fourth-quarter 2024 results benefited from improved yields on interest-earning assets, with prudent asset selection expected to drive future performance [11] - The company has a diverse funding profile and investments in Agency MBS for downside protection, with expected revenue and earnings growth rates of over 100% and 4.1%, respectively [12] Pinnacle Financial Partners Inc. (PNFP) - Pinnacle operates as a bank holding company, providing a range of banking products and services [13][14] - Expected revenue and earnings growth rates for the current year are 15.9% and 13.9%, respectively, with a 0.8% improvement in the Zacks Consensus Estimate for earnings over the last week [15] First Horizon Corp. (FHN) - First Horizon's business mix of regional and specialty banking franchises is expected to drive organic growth [16] - The company anticipates net interest income and margin improvements due to the Fed's interest rate cuts, with expected revenue and earnings growth rates of 5.5% and 7.7%, respectively [18]