Momentum investing leverages the market phenomenon where outperforming stocks tend to maintain their strong performance by focusing on securities that consistently exceed both peer companies and market benchmarks. This disciplined approach goes beyond merely following price increases, instead systematically selecting stocks that show persistent upward movement supported by robust fundamentals and strengthening business performance.
This strategy takes advantage of multiple market dynamics that drive continuing price trends. When companies report better-than-expected earnings, markets often need time to fully digest these results, leading to extended price rallies as valuations adjust. Heavy institutional purchasing can create sustained buying pressure lasting several months. Additionally, positive company news typically filters through the investment community gradually rather than instantly impacting share prices, resulting in prolonged appreciation periods as successive waves of investors respond to emerging opportunities.
Validea’s quantitative approach enhances traditional momentum signals by integrating time-tested strategies from renowned investors, producing more sophisticated screening criteria. These models examine price momentum patterns while simultaneously analyzing improving core business metrics including accelerating profit growth, widening margins, rising returns on equity, and strengthening cash generation. This comprehensive evaluation helps distinguish companies undergoing authentic operational improvements from those experiencing temporary market favor, thereby improving the prospects for sustained momentum.
Discover how Validea’s models can help you identify high-quality, long-term investments, even in changing market conditions. Visit Validea.com to access in-depth stock analysis and tools designed to emulate proven investment principles. Take a Free Trial Today!
Here are the top momentum stocks for July 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 |
|---|---|---|---|---|---|---|---|---|---|---|
| XYF | X FINANCIAL (ADR) | $13.90 | $587 | 2.9 | 0.6 | 96 | 2 | 278.7% | 8 | 91 |
| BBAR | BANCO BBVA ARGENTINA SA (ADR) | $15.75 | $3,256 | 11.8 | 1.6 | 91 | 6 | 93.8% | 5 | 24 |
| BBW | BUILD-A-BEAR WORKSHOP, INC | $52.08 | $688 | 12.5 | 1.4 | 91 | 5 | 103.1% | 12 | 80 |
| IBEX | IBEX LTD | $30.02 | $401 | 13.2 | 0.8 | 89 | 10 | 61.5% | 30 | 85 |
| LPLA | LPL FINANCIAL HOLDINGS INC | $385.04 | $30,794 | 26.7 | 2.3 | 89 | 9 | 65.0% | 33 | 71 |
| ISSC | INNOVATIVE SOLUTIONS AND SUPPORT INC | $15.31 | $270 | 24.9 | 4.1 | 94 | 5 | 122.5% | 8 | 86 |
| IESC | IES HOLDINGS INC | $351.92 | $6,987 | 28.3 | 2.2 | 94 | 5 | 102.3% | 3 | 90 |
| FIX | COMFORT SYSTEMS USA INC | $692.97 | $24,449 | 35.6 | 3.2 | 93 | 8 | 72.7% | 7 | 91 |
| STRL | STERLING INFRASTRUCTURE INC | $263.59 | $8,016 | 30.8 | 3.8 | 93 | 5 | 100.8% | 4 | 92 |
| HRTG | HERITAGE INSURANCE HOLDINGS INC | $20.62 | $639 | 8.2 | 0.8 | 95 | 2 | 202.3% | 79 | 92 |
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