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15 Best Short-Term Stocks To Invest In for 2024

September 11, 2024

8 min Read

Written by John Csiszar

Edited by Melanie Grafil

Person using tablet to invest in stocks.

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Investing in stocks for the short-term is not generally advisable. Most financial advisors suggest that you have at least a five-year time horizon if you want to invest in any stocks. But not all investors have the same belief. Many attempt to “get rich quick” by trading in and out of stocks on a short-term basis.

While studies have shown that day trading or buying stocks over a short time period is generally a losing strategy, there’s no denying that investors can occasionally score big gains relatively quickly by picking stocks that are in a strong uptrend.

With that in mind, GOBankingRates took a look at stocks that are favored by analysts and that have good short-term momentum. The stocks below have all performed well over the past three months and have outperformed the S&P 500 over that time period and have garnered significant investor interest.

Of course, momentum only lasts until it stops, and there’s no telling when an uptrend will peter out and turn into a downtrend — hence the risk of short-term trading. But if you’re looking for short-term stocks that have been on the move the past three months and seem to be riding investor momentum, here’s a look at 15. Remember that before you invest in any stocks you should either consult a financial advisor or at the very least ensure that you pick investments matching your financial objectives and risk tolerance.

1. JP Morgan Chase (JPM)

Three-month return: 7.71%

Momentum stocks are often associated with “meme” stocks, biotech companies and other more aggressive or speculative options. A global bank like JP Morgan Chase might seem like the last type of company to appear on the list. But financial stocks can be very cyclical in nature, and some are more volatile than you might imagine. While not extremely volatile, JP Morgan Chase actually has a beta of 1.11, meaning it moves up and down 11% more than the overall market on average. In spite of its seemingly conservative reputation, JPM can move around quite a bit.

One of the beauties of investing in JPM for the short-term is that even if the stock stalls out, you have a good chance of being a winner. If you’re “forced” to hold it longer-term, for example, you might do even better than trying to make a trade out of it. The stock has handily outperformed the S&P 500 over the past one, three and five years, and it pays a current dividend of 2.17%, allowing you to earn while you wait. For what it’s worth, analysts also have a “moderate buy” consensus rating on the company.

2. Carpenter Technology (CRS)

Three-month return: 23.87%

Carpenter Technology is a steel and specialty alloy company that has been on a tear for years now, not just three months. Over the past three years, for example, the stock has more than tripled. It’s volatile, with a beta of 1.45, making it 45% more volatile than the overall market, but that can play into the hands of short-term traders.

3. Affirm Holdings Inc. (AFRM)

Three-month return: 30.55%

Affirm Holding is financial technology company behind Affirm buy now, pay later payment processing. Shares appear to be on a roll right now. Despite underperforming the S&P 500 over every time period other than three months and one year, its three-month return is 30.55% compared to the S&P 500’s 1.86%.

4. H&R Block (HRB)

Three-month return: 23.37%

H&R Block is a household name when it comes to tax services, having prepared more than 800 million tax returns since 1955. Although the company pays a hefty 2.38% dividend, which doesn’t usually apply to momentum stocks, HRB has been on a tear for years. It has soundly beaten the return of the S&P 500 over the YTD, one-year, three-year and five-year periods.

5. Victoria’s Secret & Co. (VSCO)

Three-month return: 17.65%

This iconic intimate apparel company has performed poorly over the long term, with three- and five-year negative returns of 62.67% and 56.85%, respectively. However, it’s been soaring recently, outperforming the S&P 500 by a wide margin. However, with those quick gains come significant risk. Victoria’s Secret is nearly 2.25 times more volatile than the average stock.

6. T-Mobile (TMUS)

Three-month return: 14.77%

T-Mobile merged with Sprint in 2020 and announced plans to acquire U.S. Cellular this past spring, all with a stated intention to position itself as the 5G leader. Shares have easily outpaced the S&P 500 over three and six months as well as YTD and one, three and five years.

7. American Assets Trust Inc (AAT)

Three-month return: 19.19%

American Assets Trust is a real estate investment trust, not a vehicle typically suited to day or momentum trading. The stock pays a hefty 5.15% dividend and is generally suited to income-oriented investors, not traders. But it’s also highly sensitive to interest rates, meaning it can be a potential short-term play if the Fed begins cutting rates — or if the market anticipates such a move.

8. Ameris Bancorp (ABCB)

Three-month return: 24.57%

Speaking of betting on falling interest rates, Ameris Bancorp may be another option. Although falling rates can hurt banks in terms of their spread, they can also benefit from a stimulated economy. Ameris Bancorp has topped the S&P 500 return over three months, as well as over one and three years, and it has recent momentum.

9. SharkNinja Inc. (SN)

Three-month return: 27.47%

Analysts are more cautious about SharkNinja now than they’ve been in months, but there’s no denying the stock’s meteoric rise in 2024 or its stellar performance over the last five years compared to the S&P 500. The maker of Shark vacuum and Ninja kitchen products has returned 88.82% YTD, 182.46% over the last year and $221.53% and 221.53% over three and five years, respectively.

10. Arbutus Biopharma Corp (ABUS)

Three-month return: 43.59%

Biopharmaceutical companies like Arbutus Biopharma are the more “traditional” types of momentum stocks. This is because many biotech stocks are “pre-revenue,” meaning they don’t’ have any earnings yet and can trade wildly based on speculation about the success of the drugs in their pipeline. Arbutus has been on a tear the past three months, continuing a trend of five years where it has beaten the S&P 500. But at under $5 per share, be prepared for extra volatility and risk — the stock carries a 1.91 beta, making its volatility double that of the overall market.

11. Murphy USA Inc. (MUSA)

Three-month return: 13.69%

Murphy USA has been nothing but a home run for investors, posting returns of 42.99%, 63.17%, 230.90% and 482.04% over the YTD, one-year, three-year and five-year time periods. Even though its growth rate is slowing, the stock still has momentum. The gasoline station/convenience store company has more than 1,700 locations in 27 states and serves 2 million customers daily.

12. BrightSphere Investment Group Inc. (BSIG)

Three-month return: 6.17%

BrightSphere Investment Group is an asset manager that owns Acadian Asset Management. The stock has been a good trading vehicle, as it is 42% more volatile than the overall market and tends to trade in phases. While the stock has returned over 51% more than the S&P 500 YTD, for example, it has lost 12.88% over the past three years.

13. Hannon Armstrong Sustainable Infrastructure Capital, Inc. (NYSE:HASI)

Three-month return: 1.87%

Hannon Armstrong is an investment firm that deploys capital into climate change solutions. As such, its shares can be extremely volatile, depending on the current favor or disfavor green energy has in the market and which type of legislation makes its way through Congress. The stock has a 1.97 beta, meaning shares are nearly twice as volatile as the overall market. Over the YTD and one year, for example, HASI has market-beating returns, but it has actually lost more than one-third of its value over the past three years and returned 46% less than the S&P 500 over five years.

14. Frontier Communications Parent, Inc. (FYBR)

Three-month return: 35.61%

Frontier Communications Parent is the biggest pure-play provider of fiber services in America. The company is in a decided uptrend, gaining 138.57% over the past year. Even with those gains, the stock has only gained 9.40% over the past three years, showing the strength of the trend reversal. The company has topped earnings estimates for four quarters in a row, lending support to the stock.

15. ADMA Biologics (ADMA)

Three-month return: 79.18%

ADMA Biologics is a immunotechnology company that makes plasma-based therapies for patients at risk for certain infections. With 79.18% growth over three months, the stock shows little signs of slowing down. It’s up over 315% YTD and 388.54% over the last year. Three- and five-year performance is no less impressive — $1,489.83% and $299.15%, respectively. What’s more, it’s surprisingly stable, with a beta of just 0.62.

Information is accurate as of Sept. 9, 2024 and is subject to change.

Editor's note: This article was produced via automated technology and then fine-tuned and verified for accuracy by a member of GOBankingRates' editorial team.

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