15 Best Short-Term Stocks To Invest In for 2024

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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 for 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 that match your financial objectives and risk tolerance.

1. JP Morgan Chase (JPM)

• Three-month return: 16.60%

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 1.09, meaning it moves up and down 9% 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 2.09%, allowing you to earn while you wait. For what it’s worth, analysts also have a “hold” consensus rating on the company.

2. Carpenter Technology (CRS)

• Three-month return: 27.05%

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 quadrupled. It’s volatile, with a beta of 1.47, making it 47% 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: 123.55%

Affirm Holding is a 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 the longer term, its three-month return is 123.55.% compared to the S&P 500’s 12.23%.

4. Beam Therapeutics Inc. (BEAM)

• Three-month return: 14.23%

Beam Therapeutics has been a solid performer over the past three months, returning 2% more than the S&P 500. For traders, it’s been a great stock, with a volatility of 86% more than the market and an erratic trading pattern. The biotech company that focuses on genetic medicines is full of momentum, with a relative strength of 81, but even with its huge gains YTD, it has actually lost a whopping 70.08% over the past three years. This can make Beam a great trading stock if you pick it up when it’s full of momentum.  

5. Victoria’s Secret & Co. (VSCO)

• Three-month return: 82.37%

This iconic intimate apparel company has performed poorly over the long term, with three- and five-year negative returns of 28.36% and 34.45%, respectively. However, it’s been soaring recently, outperforming the S&P 500 by a wide margin. But with those quick gains come significant risk. Victoria’s Secret is 2.2 times more volatile than the average stock.

6. T-Mobile (TMUS)

• Three-month return: 23.01%

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 months as well as YTD and one, three and five years.

7. Nvidia Corp. (NVDA)

• Three-month return: 41.57%

Nvidia’s extraordinary trajectory over the last two years has pushed five-year gains to 2,749.26%, and it has easily outpaced the S&P 500 year-to-date and over one and three yearsl. More analysts are rating the stock a “hold” this month than over the last several months, but it’s up 41.57% in the last three months and could soar higher in the short term.

8. Ameris Bancorp (ABCB)

• Three-month return: 25.38%

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: 16.11%

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 98.87% YTD, 142.78% over the last year and 238.64% over three years.

10. Palantir Technologies Inc. (PLTR)

• Three-month return: 99.43%

Artificial intelligence stocks can be volatile, as Palantir’s 2.70 beta illustrates. But it’s on a roll right now, returning 99.43% over the last three months and 248.57% so far this year. Although it has a history of outperforming the S&P 500 by multiples of 5.5 to 6.4 over the last one, three and five years, it could be nearing a peak in the shorter term.

11. Vistra Corp. (VST)

• Three-month return: 80.77%

Vistra Corp. has been nothing but a home run for investors, posting returns of 272.18%, 318.14%, 681.32% and 523.24% 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 retail electricity and power generation company has been in business for 140 years. Growth estimates predict earnings will explode this quarter and next before slowing in 2025.

12. BrightSphere Investment Group Inc. (BSIG)

• Three-month return: 34.58%

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 31% more than the S&P 500 YTD, for example, it has lost 0.98% over the past three years.

13. KKR & Co. Inc. (KKR)

• Three-month return: 34.50%

KKR & Co. is a global investment firm that manages $589 billion in private equity, credit, infrastructure and real estate — and its stock dwarfs the S&P 500’s returns for every period from three months to five years. Shares are currently near their all-time high, with no sign of slowing down. But with a beta of 1.61, KKR is 61% more volatile than the market overall.

14. Frontier Communications Parent, Inc. (FYBR)

• Three-month return: 21.83%

Frontier Communications Parent is the biggest pure-play provider of fiber services in America. The company is in a decided uptrend, gaining 76.12% over the past year. Even with those gains, the stock has only gained 5.14% over the past three years, showing the strength of the trend reversal.

15. ADMA Biologics (ADMA)

• Three-month return: 36.47%

ADMA Biologics is an immunotechnology company that makes plasma-based therapies for patients at risk for certain infections. With 36.47% growth over three months, the stock shows little signs of slowing down. It’s up over 381% YTD and 477% over the last year. Three- and five-year performance is no less impressive — 1,4269.81% and 396.13%, respectively. What’s more, it’s surprisingly stable, with a beta of just 0.64.

Information is accurate as of Nov. 12, 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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