Do You Like Momentum Stocks?

As Isaac Newton famously said “a body in motion stays in motion”. 

That is as true in physics as it is in the stock market. That is why I am glad to share that we uncovered 22 different factors of momentum that are now inside the Zen Ratings model.

And those 22 factors point to 7 prime momentum stocks that we will discuss at the end of today’s article. 

For now my goal is not to bore you by spelling out all 22 momentum indicators. Instead I have 3 key aspects to share with you: 

1)  Short Term & Long Term Momentum

Academic studies show how shaky it is to just focus on short term momentum as it may be nothing more than a quick sector rotation that reverses course leading to losses. 

It is much better to be riding long term momentum that is typically based on improvements in the fundamentals of the company (in particular better than expected earnings growth). 

This consistent momentum over time leads to much greater odds of share price gains in the near term making them very timely trades. 

2) ONLY Profitable Indicators

The data science team that created the Zen Ratings investigated over 2,000 different indicators before narrowing down to the 115 remaining in the model. 

The decision of which indicators to keep (and which to reject) was very simple.

Does this factor help to consistently beat the stock market? 

Yes = In the Model

No = Rejected

The point being that the 22 momentum factors inside the Zen Ratings model were the ONLY momentum factors that consistently led to market beating stocks. And thus the ONLY momentum factors that matter. 

3) The Proof is in the Pudding

The famed +32.52% average annual return for the Zen Ratings is certainly eye-catching. But it doesn't prove how good the system is at finding timely momentum stocks ready to bolt higher right now.

So today I conducted a quick study of all the A rated stocks since the start of 2024 that produced the most impressive gains in three months or less. Here are the top 5:

+276.5% HIT

+163.5% TSSI

+127.7% NUTX

+108.0% CGEH (gains actually took place in just 28 days)

+81.2% MU (only 45 days)

Of course it’s fairly easy to produce a list of just 5 big winners. But the cool thing is that since 2024 we have enjoyed 295 double digit winners in three months or less. 

It is this consistent outperformance that is the hallmark of the Zen Ratings model. And the 22 factors of Momentum play a large part in making it the place to find the best stocks to own now.  

What to Do Next? 

Here we have a case of “Good, Better, Best” for how to find top momentum stocks to add to your portfolio. 

Free members have a good approach which is free access to the Zen Ratings on our quote pages. Just visit the WallStreetZen home page and enter any ticker in the search box to see the Momentum grade…and all the other Zen Ratings grades for your favorite stocks. 

WallStreetZen.com 

Premium members have a better way to go with our Momentum screen that combines stocks with an overall Zen Rating of A & B while also having those same strong scores for Momentum. 

This narrows down the universe of stocks from over 8 thousand to just 232 who meet this attractive criteria. Click below to see that list now:

Short Term Momentum Stocks

Zen Strategies members have the best path to profitability with our enhanced Momentum portfolio which shows only the top 7 stocks according to our stringent criteria. 

Note that this strategy has a phenomenal average annual return of +42.89% going back to 2003. And is hot out of the gate in January with a +12.9% return year to date. 

I am going to provide you two key links to explore this a bit more to determine if this is the right path for you. 

Momentum Strategy Page > 

Zen Strategies Home Page >

There you can discover all 11 strategies…not just Momentum, but Value, Growth, Small Caps…even our exclusive AI Factor model. 

A strategy for every type of investor…and every market condition. 

Each sharing just the top 7 stocks per strategy…each with consistent market beating performance. 

Zen Strategies Home Page >

Wishing you a world of investment success!

Steve Reitmeister…but everyone calls me Reity (pronounced “Righty”)

Editor-in-Chief of WallStreetZen

Want to get in touch? Email us at news@wallstreetzen.com.