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The Best Momentum Stocks to Buy for October

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Key Takeaways

  • {\"0\":\"Finding the top-ranked momentum stocks to buy for October and beyond.\",\"1\":\"Why this soaring, under-the-radar automotive equipment stock is a Zacks Rank #1 (Strong Buy).\"}

The stock market is trading at new all-time highs in the final full week of September and the third quarter. The recent surge has been driven by a wave of spending across the artificial intelligence ecosystem as investors, big and small, clamor to make sure they don’t get left behind if there is another huge leg up for Wall Street.

Some investors might be nervous to buy stocks at new all-time highs, thinking they already missed the rally. But if you never buy stocks or ETFs at or near new highs, you might never buy anything, especially in strong bull markets.

Stock market history dating back to 1970 shows that strength leads to more strength. The average 12-month price return for the S&P 500 after reaching an all-time high was 9.1%, while the average price return from investing all other days was 8.7%, according to JPMorgan data.

That said, not all stocks have participated in the rally, with roughly 200 S&P 500 stocks in the red in 2025.

As the stock market hits new highs, investors should think about buying stocks that are also hitting fresh peaks. The stocks the screen puts on your radar have also experienced strong upward earnings revisions, earning them Zacks Rank #1 (Strong Buys) heading into October and the final quarter of 2025.

Screen Basics: Finding Top Momentum Stocks to Buy

The screen we are looking into today comes loaded with the Research Wizard. The screen helps investors dig through all of the Zacks Rank #1 (Strong Buy) stocks, of which there are over 200 at any given time, to find some of the top momentum names.

The screen narrows down the list of Zacks Rank #1 (Strong Buy) stocksto those with upward price momentum that are also trading within 20% of their 52-week highs. The screen then uses the PEG ratio and the Price to Sales ratio to help make sure investors are getting value as well. The screen then makes your life a little easier and narrows it down to just seven stock picks.

The screen basics are listed below…

·       Zacks Rank = #1 (Strong Buy)

·       Current Price/52-week High >= 0.8

·       PEG Ratio: P/E F(1)/EPS Growth <= 1

·       Price/Sales <= 3

·       Percentage Change Price -12 Weeks = Top # 7

This strategy comes loaded with the Research Wizard and it is called bt_sow_momentum_method1 It can be found in the SoW (Screen of the Week) folder.

The screen is simple, yet powerful. Here is one of the seven stocks that made it through this week's screen…

Buy Soaring, Under-the-Radar Automotive Equipment Stock PHIN Now

PHINIA Inc. (PHIN - Free Report)  is a leader in premium fuel systems, electrical systems, and aftermarket solutions for the automotive industry. The company operates through Fuel Systems and Aftermarket segments, serving commercial vehicles, industrial applications, light commercial vehicles, passenger cars, and more.

The Michigan-headquartered firm's product portfolio ranges from gasoline direct injection systems and electrical systems to e-pumps, hydrogen solutions, alternative fuel systems, and beyond.

Zacks Investment Research
Image Source: Zacks Investment Research

PHIN in June announced plans to buy Swedish Electromagnet Invest AB (SEM) for approximately $47 million in a deal set to close in Q3. The firm provides “advanced natural gas, hydrogen, and other alternative fuel ignition systems, injector stators and linear position sensors.”

PHINIA made the deal to help it continue “exploring alternative, zero carbon and lower carbon fuels.”

Zacks Investment Research
Image Source: Zacks Investment Research

PHINIA crushed our Q2 earnings per share (EPS) estimate by 28% in late July and offered upbeat guidance. Its Q3 EPS estimate jumped 11% since its release, with its FY25 estimate 8% higher and its 2026 consensus up 6% to earn it a Zacks Rank #1 (Strong Buy). Better yet, the automotive equipment standout is projected to grow its adjusted EPS by 18% in 2025 and 2026.

PHIN stock has soared 130% over the past two years, outperforming its sector’s 26% and the S&P 500’s 57% returns. Its strong run includes a 36% charge over the last three months to help the stock trade at a fresh high.

PHINIA stock is holding its ground at its 21-day moving average after finding buyers at its November 2024 peaks. The premium fuel systems, electrical systems, and aftermarket solutions stock could be ready to break out heading into October. 

Get the rest of the stocks on this list and start looking for the newest companies that fit these criteria. It's easy to do. And it could help you find your next big winner. Start screening for these companies today with a free trial to the Research Wizard. You can do it.

Click here to sign up for a free trial to the Research Wizard today.

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Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.

Disclosure: Performance information for Zacks’ portfolios and strategies are available at: www.zacks.com/performance_disclosure


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