In today’s fast-paced markets, momentum investing has emerged as a powerful strategy for capturing sustained price trends and market inefficiencies. Research consistently shows that stocks exhibiting strong relative strength and positive price momentum tend to continue outperforming, driven by factors like earnings surprises, institutional buying pressure, and the gradual diffusion of positive information throughout the market. This momentum effect, far from being just a short-term anomaly, has proven to be a persistent source of excess returns across different market environments.
Validea’s guru-based momentum models combine classical momentum indicators with sophisticated quantitative criteria derived from successful investors’ strategies. These models screen for companies showing not only price momentum but also accelerating fundamental metrics like earnings growth, revenue expansion, and margin improvement. By incorporating multiple momentum factors and stringent quality filters, Validea’s approach helps investors identify companies with sustainable momentum rather than those experiencing temporary price spikes, providing a systematic framework for capturing upside potential while managing risk through disciplined position sizing and regular rebalancing.
Here are the top momentum stocks for January of 2025.
| Ticker | Company Name | Price | Market Cap ($mil) | PE Ratio | Price/ Sales | Relative Strength | Momentum Percentile | Twelve Minus One Return | Fundamental Momentum Percentile | 6 Mo Rel Str |
|---|---|---|---|---|---|---|---|---|---|---|
| USLM | UNITED STATES LIME & MINERALS INC | $118.68 | $3,394 | 34.4 | 11.2 | 93 | 4 | 165.0% | 8 | 86 |
| TCBX | THIRD COAST BANCSHARES INC | $35.08 | $483 | 14.0 | 2.8 | 89 | 9 | 81.9% | 77 | 85 |
| IGIC | INTERNATIONAL GENERAL INSURANC HLDGS LTD | $24.06 | $1,091 | 7.9 | 2.1 | 89 | 10 | 76.7% | 3 | 86 |
| NGVC | NATURAL GROCERS BY VITAMIN COTTAGE INC | $41.54 | $952 | 28.3 | 0.8 | 95 | 4 | 156.3% | 11 | 90 |
| NWG | NATWEST GROUP PLC – ADR | $10.73 | $42,616 | 8.4 | 2.3 | 90 | 9 | 83.4% | 8 | 77 |
| SUPV | GRUPO SUPERVIELLE SA -ADR | $17.09 | $1,545 | 12.9 | 1.2 | 97 | 2 | 278.7% | 77 | 96 |
| VCTR | VICTORY CAPITAL HOLDINGS INC | $66.39 | $4,318 | 16.5 | 5.0 | 90 | 8 | 94.9% | 15 | 79 |
| CCB | COASTAL FINANCIAL CORP (EVERETT) | $82.83 | $1,236 | 27.9 | 2.2 | 91 | 8 | 97.7% | 7 | 88 |
| IESC | IES HOLDINGS INC | $303.74 | $6,066 | 28.3 | 2.1 | 96 | 4 | 157.9% | 3 | 94 |
| BBAR | BANCO BBVA ARGENTINA SA (ADR) | $22.90 | $5,355 | 13.6 | 2.2 | 97 | 2 | 245.0% | 9 | 96 |
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