Five Stocks with Strong Momentum Expected to Lead Market Recovery
Stock markets experienced mixed results in July due to concerns about interest rate hikes and the escalating US-Iran conflict. Volatility returned, causing AI trade stocks to suffer from high valuations and uncertainty.
The Zacks Equity Research analysts narrowed their focus to five stocks with a favorable Zacks Rank that are expected to maintain momentum in August: Comfort Systems USA Inc., The Goldman Sachs Group Inc., Vertiv Holdings Co., Seagate Technology Holdings plc, and The Travelers Companies Inc. Each of these companies has a Zacks Rank #1 (Strong Buy) at present and a Zacks Momentum Score of A.
Comfort Systems operates primarily in the commercial and industrial heating, ventilation, and air conditioning markets, with data centers driving demand for specialized HVAC solutions. Backlog as of June 30, 2026, totaled $14.06 billion, increasing 12.9% from $12.45 billion at March 31, 2026, and jumping 73.2% from $8.12 billion reported a year ago.
The Goldman Sachs Group Inc.'s second-quarter 2026 results benefited from strong revenue growth in Global Banking & Markets and Asset & Wealth Management. GS is prioritizing durable revenue streams, with improving deal activity and a strong investment banking backlog supporting advisory and fee-income growth.
Vertiv Holdings Co. has been benefiting from demand for AI infrastructure, expanding data center complexity and continued investment in capacity and technology. Vertiv's power, cooling, and services portfolio positions it to support next-generation data center expansion.
The Travelers Companies Inc.'s second-quarter 2026 results reinforced the durability of TRV's earnings base, as underlying margins remained attractive. TRV expects its full-year 2026 underwriting expense ratio to be approximately 28.5%.