What Makes a Stock a Momentum Stocks List constituent?
This momentum screen identifies market leaders by filtering for a 1-year return of 50%+, a 3-month return of 10%+, and an RS Rating of 70+. By combining these technical triggers with an 8% ROE floor, we isolate stocks like NVIDIA in 2023, which surged 239% while maintaining high profitability, rather than speculative bubbles.
Filter for Primary Uptrends
We require a 1-year return of 50%+ to ensure the stock is a clear leader. For example, Super Micro Computer displayed this strength in 2023 before its massive rally.
Verify Recent Momentum
A 3-month return of 10%+ ensures the trend is active. This avoids 'dead' leaders like Peloton in 2022, which had high historical gains but negative recent momentum.
Apply Quality and Liquidity
An 8% ROE and $1B market cap filter out 'junk' stocks. This prevents buying speculative penny stocks that lack the institutional backing seen in giants like Eli Lilly.