U.S. stock markets closed at record highs in April supported by a solid first-quarter 2026 earnings season, continuation of artificial intelligence (AI) trade and expectations for a near-term solution to the Middle East geopolitical conflicts.
The broad market S&P 500 Index and the tech-heavy Nasdaq Composite surged 10.4% and 15.3%, respectively, in April, recording their best monthly performance since 2020. Both indexes posted several closing and intra-day highs last month.
On April 30, the S&P 500 closed above the technical barrier of 7,200 for the first time in its history. The Dow advanced 7.1% last month, marking its strongest monthly performance since November 2024.
At this stage, we recommend five large-cap stocks with a favorable Zacks Rank that are expected to maintain their momentum in May, too. These are: Comfort Systems USA Inc. FIX, Texas Instruments Inc. TXN, Onto Innovation Inc. ONTO, Northern Trust Corp. NTRS and Dow Inc. DOW.
Each of the stocks sports a Zacks Rank #1 (Strong Buy) at present and has a Zacks Momentum Score of A. You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart below shows the price performance of our five picks in the past month.
Image Source: Zacks Investment Research
Comfort Systems USA Inc.
Comfort Systems operates primarily in the commercial and industrial heating, ventilation and air conditioning ("HVAC") markets, and performs most of its services within manufacturing plants, office buildings, retail centers, apartment complexes, and healthcare, education and government facilities.
The data center boom, driven by AI, cloud computing, and high-performance computing, is fueling demand for specialized HVAC solutions from FIX. Cooling systems for these facilities should deliver precise and reliable performance, prompting investments in advanced technologies such as liquid cooling and modular units.
This segment is becoming a significant growth driver for FIX, offering high-margin opportunities and attracting M&A activity. HVAC firms with capabilities in precision cooling and energy-efficient infrastructure are well-positioned to capture share in this fast-expanding niche.
Comfort Systems USA has an expected revenue and earnings growth rate of 30.7% and 49%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 17.8% in the last seven days.
Texas Instruments Inc.
Texas Instruments is benefiting from solid data center demand, which is boosting its prospects in the enterprise systems market. A sustained focus on expanding TXN’s product portfolio across the Analog and Embedded Processing segments helps capture market share.
The acquisition of Silicon Labs for $7.5 billion strengthens TXN’s dominance in the high-growth Internet of Things (IoT) landscape. By integrating Silicon Labs’ premier wireless connectivity portfolio — comprising 1,200 specialized wireless connectivity products — TXN bridges the gap between its legacy analog strength and the future of secure, connected embedded processing.
TXN’s deepening focus on internal manufacturing and advanced technology infusion is another positive. TXN’s robust cash flows and aggressive shareholder return policies instill confidence in its long-term prospects.
Texas Instruments has an expected revenue and earnings growth rate of 16.6% and 39.5%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 11.8% in the last seven days.
Onto Innovation Inc.
Onto Innovation has been benefiting from continued demand in AI and advanced packaging. The Dragonfly platform is a key catalyst, backed by more than $240 million in deals with a top HBM manufacturer.
ONTO expects advanced packaging sales to grow more than 30% in 2026. With momentum in both advanced packaging and advanced nodes, first-quarter revenues are projected at $275-$285 million, with the second-quarter expected to surpass $300 million, marking a core business acceleration to roughly 12-14% growth in the first half of 2026 from the second half of 2025.
Despite supply and power semiconductor headwinds, at the midpoint of guidance, ONTO expects a gross margin of 54.6-55.6%, up about 50 bps sequentially, led by tariff mitigation and higher shipment volumes. For 2026, ONTO expects power semiconductor revenues to fall about 10% due to softer EV demand and slower infrastructure spending.
Onto Innovation has an expected revenue and earnings growth rate of 27.1% and 36%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 4.8% in the last 30 days.
Northern Trust Corp.
Northern Trust continues to benefit from higher net interest income (NII) and growth in assets under custody (AUC) and assets under management (AUM) balances. The Fed rate cuts in 2025 and a possible cut in 2026 are likely to support NTRS’ loan growth.
NTRS’ partnership with Envestnet expands access to tax-managed direct indexing solutions for ultra-high-net-worth clients. The disciplined headcount management and automation initiatives are likely to enhance productivity. A solid liquidity position will aid NTRS’ capital distribution plan.
Northern Trust has an expected revenue and earnings growth rate of 8.1% and 18%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 5.6% in the last 30 days.
Dow Inc.
Dow has been gaining from cost synergy savings and productivity initiatives. DOW focuses on maintaining cost and operational discipline through restructuring and cost-removal initiatives. DOW’s actions to reduce operating costs are expected to lend support to its earnings in 2026.
Investment in high-return projects should also be accretive to its earnings. DOW is also taking action to reduce its debt and remains focused on boosting shareholder returns. DOW has adequate liquidity to meet its debt obligations.
DOW has an expected revenue and earnings growth rate of 8.2% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved by more than 100% in the last seven days.
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Texas Instruments Incorporated (TXN): Free Stock Analysis Report
Northern Trust Corporation (NTRS): Free Stock Analysis Report
Dow Inc. (DOW): Free Stock Analysis Report
Comfort Systems USA, Inc. (FIX): Free Stock Analysis Report
Onto Innovation Inc. (ONTO): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).