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5 Trending Stocks to Buy Right Now

In stock market parlance, when a stock is said to be trending, that means more than just the fact that it’s going up in price. If a real trend is established, something other than regular market forces are at work.

Once a trend has been identified, it becomes a self-fulfilling thing. The early investors who started the trend may have had good fundamental reasons for buying in, but as a trend matures and catches the attention of the broad market, some investors — especially short-term traders — buy for the sole reason that the stock is trending. As a trend continues, it attracts more trend followers and can push the price up even further.

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Stocks can trend for any number of reasons, or sometimes — as in the case of meme stocks — for no real reason at all. Setting aside meme stocks, which are almost pure speculation, every legitimate stock trend is driven by its own set of conditions. There are usually identifiable fundamental or technical factors behind a trend.

Fundamental trends are powered by things like earnings and revenue surprises, unexpected upgrades from one or more of the big analyst firms, or an announced merger or acquisition.

Technical trends are a function of supply and demand. In simple terms, there are more buyers than sellers.

Other factors can fuel trends as well. Social media buzz should be taken with a grain of salt but shouldn’t be wholly discounted. Macroeconomic conditions, such as interest rates, employment numbers and oil prices, can also contribute.

Getting in on a trend can have great benefits. If an investor buys in early enough, trending stocks can produce substantial gains. Trends are sustained by momentum. Investors are much more likely to buy a stock that’s already rising and, as more people buy, the stock can be driven higher. Investing in trending stocks, however, is not foolproof. Uptrends can and do end abruptly, and the same momentum that drove the stock up can force it down just as quickly.

When it comes to trend following, know your objective in advance. Are you a long-term investor looking for an opportune entry point or just looking to make a relatively short-term trade? Knowing what you want to accomplish will be key to your success.

If you’re ready to take strategic advantage of current uptrends, check out this list of five stocks that are trending upward right now:

Stock Year-to-Date Gain as of Jan. 14
GE HealthCare Technologies Inc. (ticker: GEHC) 7.7%
Delta Air Lines Inc. (DAL) 9.6%
Vistra Corp. (VST) 23.7%
Micron Technology Inc. (MU) 15.7%
Enterprise Products Partners LP (EPD) 6.7%

GE HealthCare Technologies Inc. (GEHC)

GEHC has been strongly trending higher since the first trading day of the year. The stock ended 2024 with an adjusted close at $78.15. On Jan. 14, it closed at $84.13 for a year-to-date gain of about 7.7%. That compares very favorably to the S&P 500, which was down 0.7% for that same period.

The trend is driven by the expectation of continued strong earnings performance and the anticipation of new partnerships and possible acquisitions. Wall Street is also looking for new product innovations, especially in the company’s imaging segment.

GE HealthCare is a $34 billion health care technology company specializing in advanced digital medical equipment that’s used by doctors and technicians to diagnose and treat a wide variety of conditions. The company has four divisions: Imaging, Ultrasound, Patient Care and Pharmaceutical Diagnostics. On Jan. 8, Jefferies upgraded the stock from “hold” to “buy.”

Delta Air Lines Inc. (DAL)

DAL, which closed on Jan. 14 at $66.29, is in the midst of a powerful uptrend that kicked off in early August 2024, when it was trading at around $37. Year to date, the stock has already turned in a gain of nearly 10%.

DAL is a $43 billion major airline that transports passengers and cargo all over the globe. The firm’s U.S. hub airports are in Atlanta, Minneapolis, Detroit and Salt Lake City. It has a smaller presence in Boston, Los Angeles and New York. Its Delta SkyMiles program is one of the longest-running and most successful loyalty programs in any business.

Air travel is a notoriously tough, highly competitive business, yet DAL seems to be outstripping all of its competitors. It reported record-breaking revenue for 2024 and Wall Street has high expectations for 2025. The company’s remarkable growth and resilience in such a difficult industry is what is driving this trend.

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Vistra Corp. (VST)

VST has been experiencing an incredible uptrend for about a year, and it shows no signs of slowing down. The stock is up 23.7% year to date and rose 337% over the 12 months ended Jan. 14.

VST is a $58 billion, Texas-based electric utility that is benefiting from the unprecedented demand for power from data centers being built in that state. The key to this company’s success is that it signs very profitable, long-term power purchase agreements with tech companies, and it can deliver on its commitments.

VST operates one of the largest portfolios of nuclear power plants in the U.S. Modern nuclear power is extremely reliable, has low carbon emissions and can produce tremendous amounts of electricity on demand. Also, VST is a private rather than a regulated utility; this gives it flexibility in pricing and marketing that public utilities can’t match.

The stock pays a forward annual dividend of 89 cents a share, which works out to a 0.5% yield.

UBS and Guggenheim both have the stock rated “buy.” Morgan Stanley has an “overweight” rating on the company.

Micron Technology Inc. (MU)

Micron Technology engineers, manufactures and distributes computer memory and data storage products. Most of its customers are in the U.S., Taiwan, China, Japan and Europe. The company has a market cap that tops $108 billion.

This company’s state-of-the-art products are used in data centers, personal computers, gaming and video graphics, the internet, self-driving automobiles, and many other industries. It sells its products through its own captured sales force and independent salespeople.

The worldwide surge in cloud computing and artificial intelligence applications is what’s driving the uptrend MU is experiencing right now. While major market indicators such as the S&P 500 and the Dow Jones Industrial Average are struggling to eke out small gains, MU has appreciated 15.7% year to date.

Enterprise Products Partners LP (EPD)

Enterprise Products Partners is a $72 billion midstream energy company. It transports and stores natural gas and crude oil products through its extensive storage facilities, pipeline network, trucking terminals and shipping fleets.

EPD has customers all over the U.S. but concentrates its efforts on ports in Texas, Mississippi and Louisiana. This company is a critical part of our nation’s energy infrastructure.

Recent decisions by OPEC+ to slow oil production increases have dampened global oil supply and boosted demand for the services of companies like Enterprise Products Partners. Colder weather in the heart of winter has also bolstered demand. The result has been a sustained uptrend in this name.

We’re just halfway through January and EPD has already appreciated nearly 7% year to date. That’s an extraordinary performance when you consider that, as of Jan. 14, the Dow was essentially flat for the year.

EPD is organized as a master limited partnership, or MLP. All MLPs must distribute at least 90% of taxable income back to shareholders as a dividend. This stock’s forward annual dividend is $2.14. That works out to be a dividend yield of 6.4%.

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5 Trending Stocks to Buy Right Now originally appeared on usnews.com

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