5 Growth Stocks Set to Keep Outperforming Amid Strong Bullish Momentum in the Current Market
3min read The stock market has shifted back into "risk-on" mode following last week’s announcement of the U.S.-U.K. trade deal, along with significant tariff reductions between the U.S. and China on Monday. With more deals expected in the coming weeks, the landscape is becoming increasingly favorable for investors. Although some remain cautious due to President Trump's unpredictable decisions, the overall market shows resilience and bullish momentum, signaling that it may be time to chase the mania. Here are five growth stocks poised to perform well in this environment, supported by strong fundamentals and rising retail investor interest, with even greater upside potential as the bull market unfolds.
Tesla (TSLA):
Elon Musk’s move to step back from his controversial role in the Trump administration’s “DOGE” initiative and refocus on Tesla and xAI has reignited investor confidence. More importantly, Trump’s push to streamline robotaxi regulations could fast-track Tesla’s Cybercab launch, now set for a June pilot in Austin.
The easing of trade tensions between the U.S. and China presents a significant opportunity for Tesla to expand its reach in the Chinese market, particularly with its FSD technology. As the U.S. government accelerates its autonomous and AI initiatives, Tesla is poised for substantial growth.
From a technical perspective, Tesla is in a strong bullish trend, with its moving averages (MA) — 3, 7, and 10 days — all trending upward. This momentum is further supported by a robust retail investor base, suggesting that the stock could see even more appreciation. With the combination of favorable policies and strong market sentiment, Tesla remains a compelling investment.
Robinhood (HOOD):
We always maintain strong conviction in Robinhood’s outlook. Its retail-investor-friendly interface and wide range of offerings — including equities, ETFs, options, and futures — continue to attract active traders. Trading platforms typically benefit in bull markets, as more investors are inclined to trade and even use margin. HOOD’s core revenue streams — payment-for-order-flow and margin interest — are likely to surge as investor frenzy intensifies.
In addition, the company is expanding into Europe to offer U.S. securities and aims to enter wealth management and private banking, tapping into a broader addressable market.
From a technical standpoint, the pattern is similar to Tesla, with MA(3,7,10) trending upward and the stock revisiting its February highs. While the S&P 500 still struggles with March resistance levels, investor demand for Robinhood remains strong. Overall, strong alpha combined with leveraged beta could push HOOD significantly higher.
Broadcom (AVGO):
Broadcom is emerging as a more favorable option compared to Nvidia, particularly in light of aggressive AI infrastructure spending by tech giants. Unlike Nvidia, Broadcom is less exposed to geopolitical risks, allowing it to maintain a strong position in the market. The recent thawing of U.S.-China relations may temporarily boost Nvidia shares, but the ongoing AI race ensures that companies like Broadcom remain well-positioned.
With partnerships involving major players like Apple, Google, Amazon, and Meta, Broadcom is customizing AI server chips that further strengthen its market standing. The stock has recently outperformed the broader index, reflecting investor confidence in its AI prospects. Technically, Broadcom is also showing bullish momentum, with MAs trending upward — a strong indicator of continued growth potential.
Palantir (PLTR):
Palantir has captured retail investors' attention, currently boasting a high price-to-sales ratio of around 71, comparable to Salesforce. Despite its lofty valuation, the company’s strong narrative around AI and its partnerships with the U.S. defense sector — especially with President Trump promising $1 trillion in defense spending next year — continue to support its long-term potential. The anticipated shift toward AI in military applications could be a major growth driver for Palantir.
While the stock experienced a drop post-earnings last week, it’s important to remember that Palantir’s valuation is tied to long-term prospects rather than short-term performance. As long as the company’s fundamentals stay intact, investor enthusiasm is likely to keep driving the stock higher. However, investors should be aware of the inherent risks associated with its elevated valuation
Morgan Stanley (MS)
Morgan Stanley could be seen as the “Robinhood Pro Max” of the banking sector, with a strong focus on equity trading and asset management services. This strategic positioning enables it to benefit significantly from bullish market sentiment. Confidence in the U.S. financial system and a solid macro backdrop support the recovery of bank stocks, and Morgan Stanley stands out as trading activity picks up.
From a technical perspective, Morgan Stanley is flashing bullish signals, with its moving averages trending upward and the 3-day MA leading the 7-day and 10-day MAs. This healthy technical setup suggests that the stock could continue to perform well under the current market dynamics.
To conclude, the current market conditions present a unique opportunity for investors to capitalize on growth stocks that are well-positioned for success. Tesla, Robinhood, Broadcom, Palantir, and Morgan Stanley each offer distinct advantages, supported by strong fundamentals and bullish technical indicators. As the market continues to recover and investors regain confidence, these stocks could deliver substantial returns.
