3 Momentum Stocks to Snag for a Strong Q4

Wall Street’s momentum is heating up as we dive headfirst into the fourth quarter. The S&P 500 Index SPX and the Dow Jones Industrial Average $DOWI are breaking records, signaling a bullish momentum that traders shouldn’t ignore. This sentiment is amplified by a robust earnings season and the Federal Reserve’s soft landing approach. Jefferies analysts, led by U.S. small to mid-cap strategist Steven DeSanctis, are encouraging traders to ride the wave of momentum into year-end.

Momentum investing is all about capitalizing on trends—stocks that are rising tend to continue their ascent, while those in decline often drift lower. With that philosophy in mind, here’s a look at three hot momentum stocks that could propel your portfolio into a successful Q4:

Momentum Stock #1: Howmet Aerospace Inc. (HWM)

Pittsburgh-based Howmet Aerospace Inc. (HWM) is a key industrial supplier to the aviation and transport sectors. With a strong market cap of $43 billion, Howmet specializes in manufacturing precision components for jet engines and titanium structures while also providing forged aluminum wheels for heavy trucks.

Over the past 52 weeks, Howmet’s shares have skyrocketed nearly 138%, and they’re up 95% year-to-date (YTD), recently hitting a new high of $106.76. The big news? On September 25, Howmet declared a quarterly dividend of $0.08 per share, payable on November 25, with an annualized yield of 0.30%.

Howmet jumped over 13% after reporting better-than-expected fiscal Q2 earnings, with total revenue climbing 14% year-over-year to $1.9 billion. This growth was primarily driven by a phenomenal 27% uptick in the commercial aerospace market, and adjusted EPS soared 52% annually to $0.67.

With fiscal Q3 earnings on the horizon for November 6, optimism surrounds the stock. Consensus ratings give HWM a “Strong Buy” status, with 18 of 21 analysts advocating a “Strong Buy.”

Momentum Stock #2: Onto Innovation Inc. (ONTO)

Next up is Onto Innovation Inc. (ONTO), a Massachusetts-based leader in advanced semiconductor packaging. With a market cap of about $10.3 billion, Onto specializes in enhancing wafer quality, 3D metrology, and lithography solutions—leading its clients toward high-performance advances, particularly in artificial intelligence (AI) and high-bandwidth memory (HBM) projects.

ONT shares have appreciated 66.7% in the past year and are up 37% year-to-date. The stock surged over 8% post its impressive Q2 earnings report, which revealed a 27% year-over-year revenue increase to $242.3 million. This surge was driven by record revenues in specialty and advanced packaging, hitting $164 million.

Anticipating Q3 results on October 31, analysts forecast revenue in the range of $245 million to $255 million, and adjusted EPS between $1.25 and $1.35. Analysts predict Onto’s profits will leap 38.9% year-over-year to $5.18 per share in fiscal 2024, with continued robust growth projected into fiscal 2025. ONTO also holds a consensus rating of “Strong Buy,” with six out of seven analysts backing the stock fiercely.

Momentum Stock #3: US Foods Holding Corp. (USFD)

Last but not least, we have US Foods Holding Corp. (USFD), a cornerstone in the U.S. food service industry. Based in Rosemont, Illinois, this $15.3 billion company supplies a diverse array of fresh, frozen, and dry goods to various enterprises—from local diners to giant national chains.

USFD has experienced a robust 66.6% increase over the past year and has risen more than 37% in 2024, reaching a new all-time high of $63.13 on October 15. In its recent fiscal Q2 report on August 8, US Foods posted a revenue increase of 7.7% year-over-year to $9.7 billion, propelled by total case volume growth and food cost inflation, though adjusted EPS came in just shy of estimates.

Anticipation builds for November 7, when the company releases its Q3 earnings. Management estimates net sales between $37.5 billion and $38.5 billion, with adjusted EPS expected to range from $3.00 to $3.20. Analysts see US Foods’ profits surging 18.4% year-over-year to $2.90 in fiscal 2024 and expect another 20.3% increase to $3.49 in 2025. USFD enjoys a compelling “Strong Buy” consensus from analysts, with 11 out of 14 recommending a bullish stance.

As momentum trends persist, now is the time to pounce on these standout stocks. Keep your eyes peeled for earnings releases as Q4 unfolds and position yourself to take advantage of what promises to be a thrilling finish to the year.