Trending stocks refer to those that are currently experiencing significant upward momentum and are outperforming the broader market. These stocks capture the attention of investors due to various factors such as strong financial performance, innovative products, favorable market conditions, or even social media buzz. Once a trend is established, it can become self-fulfilling as more investors buy into the stock simply because it is trending, further pushing the price up.
There are several reasons why stocks trend. Fundamental trends are driven by factors like earnings and revenue surprises, upgrades from analyst firms, or announcements of mergers and acquisitions. Technical trends, on the other hand, are a function of supply and demand, where there are more buyers than sellers. Additionally, macroeconomic conditions such as interest rates, employment numbers, and oil prices can also contribute to stock trends.
Investing in trending stocks can be lucrative as they can produce substantial gains if bought early enough. However, it is not without risks, as trends can end abruptly, and the same momentum that drove the stock up can force it down just as quickly. Therefore, it is important for investors to know their objectives in advance, whether they are looking for a long-term investment or a short-term trade.
Some examples of trending stocks as of January 15, 2025, include GE HealthCare Technologies Inc. (GEHC), which is trending higher due to expectations of continued strong earnings performance and new partnerships; Delta Air Lines Inc. (DAL), which reported record-breaking revenue for 2024 and has high expectations for 2025; Vistra Corp. (VST), an electric utility benefiting from the demand for power from data centers; Micron Technology Inc. (MU), which is experiencing an uptrend due to the surge in cloud computing and artificial intelligence applications; and Enterprise Products Partners LP (EPD), a midstream energy company that has seen a sustained uptrend due to decisions by OPEC+ to slow oil production increases and colder weather boosting demand for its services.
If you’re ready to take strategic advantage of current uptrends, check out this list of five stocks that are trending upward right now:
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.
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%.