Twin Momentum combines technical analysis with fundamental quality assessment to create a powerful framework for identifying premium investment opportunities. This methodology only selects companies that excel in both price momentum and business fundamentals, specifically targeting those in the top 20% across both categories.
The fundamental momentum evaluation analyzes companies through seven critical financial metrics:
- Earnings growth trajectory
- Return on Equity (ROE) performance
- Return on Assets (ROA) efficiency
- Accrual operating profitability to equity ratio
- Cash operating profitability to assets measurement
- Gross profit to assets relationship
- Net payout ratio assessment
Pioneered by finance researcher Dashan Huang in his seminal “Twin Momentum” study, this approach represents a significant evolution in quantitative investing strategies. By requiring excellence in both technical and fundamental dimensions, Twin Momentum creates a comprehensive screening system that aims to boost returns while reducing risks, effectively overcoming limitations typically found in single-factor momentum strategies.
Here are the top twin momentum stocks for May of 2025.
| Ticker | Company Name | Price | Market Cap ($mil) | PE Ratio | Price/ Sales | Relative Strength | Price/ Book | Price/ Cash Flow | Dividend Yield | Long-Term EPS Growth |
|---|---|---|---|---|---|---|---|---|---|---|
| URBN | URBAN OUTFITTERS INC | $62.81 | $5,820 | 14.7 | 1.1 | 88 | 2.4 | 11.2 | 0.0% | 130.7% |
| CALM | CAL-MAINE FOODS INC | $99.64 | $4,832 | 4.9 | 1.3 | 91 | 2.1 | 4.5 | 4.3% | 182.9% |
| HRB | H & R BLOCK INC | $57.65 | $7,718 | 14.0 | 2.1 | 67 | 85.3 | 11.3 | 2.4% | 98.8% |
| COKE | COCA-COLA CONSOLIDATED INC | $1,175.86 | $10,251 | 20.5 | 1.5 | 80 | 6.8 | 13.3 | 0.5% | 217.3% |
| PODD | INSULET CORP | $324.75 | $22,854 | 58.4 | 10.4 | 91 | 17.2 | 47.0 | 0.0% | 144.3% |
| BKNG | BOOKING HOLDINGS INC | $5,317.07 | $173,019 | 33.1 | 7.2 | 86 | 28.6 | 0.7% | 118.1% | |
| HWM | HOWMET AEROSPACE INC | $162.80 | $65,847 | 53.1 | 8.7 | 93 | 13.9 | 43.0 | 0.2% | 65.1% |
| VRSK | VERISK ANALYTICS, INC. | $309.57 | $43,304 | 45.7 | 14.8 | 78 | 352.3 | 33.9 | 0.5% | 19.2% |
| TJX | TJX COMPANIES INC | $133.34 | $148,873 | 31.3 | 2.6 | 83 | 17.8 | 25.0 | 1.1% | 69.7% |
| IDT | IDT CORP | $60.82 | $1,534 | 19.3 | 1.3 | 88 | 5.6 | 14.6 | 0.3% | 75.4% |
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