Ten High Fundamental Momentum Stocks

Ten High Fundamental Momentum Stocks

Fundamental momentum measures how a company’s operational and financial performance improves over time through metrics like return on equity, operating margins, and other key indicators. Unlike price momentum, which only tracks stock price movements, fundamental momentum examines the actual business performance trends.

Research by Dashan Huang et al. on Twin Momentum revealed that companies with improving fundamentals typically outperform those that just have price momentum.

This concept is significant for investors because it identifies companies making genuine operational improvements rather than experiencing just temporary price gains. Consistent improvement in fundamental metrics often signals effective management, growing competitive advantages, or successful adaptation to market changes.

Huang discovered that combining fundamental and price momentum creates a more powerful investment strategy than either approach alone. This combination helps investors identify companies with both strong market performance and solid underlying business fundamentals, reducing the risk of investing in companies that are merely riding market sentiment without substantive operational improvements


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Here are the top 10 fundamentally sound high fundamental momentum stocks using our guru models as of March 2025.

TickerCompany NamePriceMarket Cap
($mil)
PE
Ratio
Price/
Sales
Relative
Strength
Price/
Book
Price/
Cash Flow
Dividend
Yield
Fundamental
Momentum
Percentile
POWLPOWELL INDUSTRIES INC$173.36$2,09213.22.0664.212.50.6%1
URBNURBAN OUTFITTERS INC$48.81$4,50411.50.8721.88.70.0%1
CALMCAL-MAINE FOODS INC$83.03$4,0726.51.3852.05.73.5%1
HRBH & R BLOCK INC$50.23$6,72313.71.9671.510.32.7%1
HOGHARLEY-DAVIDSON INC$24.56$3,0597.40.6291.05.12.8%1
AMPHAMPHASTAR PHARMACEUTICALS INC$26.66$1,2708.71.7301.75.90.0%1
COKECOCA-COLA CONSOLIDATED INC$1,318.47$11,49421.01.7898.113.90.3%1
NXPINXP SEMICONDUCTORS NV$206.16$52,28621.24.2455.715.02.0%1
PODDINSULET CORP$255.44$17,93944.18.78814.835.90.0%1
BKNGBOOKING HOLDINGS INC$4,465.48$146,53625.86.2803.422.60.8%1

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