The Twin Momentum strategy looks at combining traditional price momentum with improving fundamentals to generate market outperformance. The strategy uses seven fundamental variables (earnings, return on equity, return on assets, accrual operating profitability to equity, cash operating profitability to assets, gross profit to assets and net payout ratio) that are combined into a single fundamental momentum measure. The strategy is based on the research paper “Twin Momentum” by Dashan Huang and looks for stocks that are in the top 20% of the universe using both price and fundamental momentum.
Here are the top twin momentum stocks for January of 2025.
| Ticker | Company Name | Price | Market Cap ($mil) | P/E Ratio | Price/Sales | Relative Strength | Price/Book | Price/Cash Flow | Dividend Yield | Long-Term EPS Growth |
|---|---|---|---|---|---|---|---|---|---|---|
| CALM | Cal-Maine Foods Inc. | $111.91 | $5,488 | 8.7 | 1.8 | 39 | 2.7 | 7.7 | 2.6% | 240.9% |
| POWL | Powell Industries Inc. | $257.23 | $3,102 | 20.9 | 3.1 | 81 | 6.4 | 19.8 | 0.4% | 223.9% |
| URBN | Urban Outfitters Inc. | $57.54 | $5,310 | 16.5 | 1.0 | 87 | 2.3 | 12.0 | 0.0% | 15.0% |
| EPAC | Enerpac Tool Group Corp. | $40.82 | $2,221 | 26.2 | 3.8 | 80 | 5.6 | 22.4 | 0.1% | 12.0% |
| ONTO | Onto Innovation Inc. | $180.03 | $8,892 | 48.8 | 9.4 | 77 | 4.7 | 35.6 | 0.0% | 20.0% |
| SQM | Sociedad Química y Minera de Chile SA (ADR) | $36.70 | $10,121 | 8.1 | 2.1 | 29 | 2.1 | 604.5 | 2.0% | 15.0% |
| HRB | H & R Block Inc. | $53.83 | $7,377 | 13.2 | 2.0 | 67 | 1.6 | 10.4 | 2.4% | 8.0% |
| AESI | Atlas Energy Solutions Inc. | $22.98 | $2,525 | 30.6 | 2.7 | 80 | 2.4 | 14.6 | 2.0% | 10.0% |
| NXPI | NXP Semiconductors NV | $208.86 | $53,083 | 19.9 | 4.1 | 57 | 5.6 | 14.4 | 1.9% | 12.0% |
| HOG | Harley-Davidson Inc. | $30.01 | $3,821 | 6.8 | 0.7 | 41 | 1.2 | 5.1 | 2.3% |
Further Research
