The Twin Momentum strategy combines price momentum with improving fundamentals to deliver enhanced market returns. This approach integrates traditional price analysis with fundamental evaluation to create a powerful stock selection framework. By targeting only companies in the top 20% for both price and fundamental momentum, this method focuses on truly exceptional investment candidates.
For measuring fundamental strength, Twin Momentum analyzes seven critical financial metrics:
- Earnings growth
- Return on equity (ROE)
- Return on assets (ROA)
- Accrual operating profitability to equity
- Cash operating profitability to assets
- Gross profit to assets
- Net payout ratio
Pioneered by financial researcher Dashan Huang and documented in his “Twin Momentum” paper, this strategy represents a meaningful evolution in quantitative investing. By requiring excellence in both technical and fundamental aspects, Twin Momentum establishes a rigorous screening process that may lower risk while boosting returns—addressing key limitations of single-factor momentum strategies.
Here are the top twin momentum stocks for March 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 |
|---|---|---|---|---|---|---|---|---|---|---|
| POWL | POWELL INDUSTRIES INC | $179.68 | $2,168 | 13.7 | 2.1 | 69 | 4.4 | 12.9 | 0.6% | 225.4% |
| CALM | CAL-MAINE FOODS INC | $91.70 | $4,498 | 7.1 | 1.5 | 88 | 2.2 | 6.3 | 3.2% | 240.9% |
| COKE | COCA-COLA CONSOLIDATED INC | $1,316.01 | $11,473 | 21.0 | 1.7 | 89 | 8.1 | 13.9 | 0.3% | 217.3% |
| PODD | INSULET CORP | $261.63 | $18,373 | 45.2 | 8.9 | 89 | 15.2 | 36.8 | 0.0% | 143.6% |
| BKNG | BOOKING HOLDINGS INC | $4,563.39 | $149,749 | 26.4 | 6.3 | 83 | 3.2 | 23.1 | 0.8% | 117.2% |
| HWM | HOWMET AEROSPACE INC | $129.27 | $52,357 | 46.0 | 7.1 | 11.7 | 36.6 | 0.2% | 63.6% | |
| VITL | VITAL FARMS, INC. | $31.59 | $1,398 | 26.6 | 2.3 | 86 | 5.2 | 20.2 | 0.0% | 99.8% |
| EPAC | ENERPAC TOOL GROUP CORP | $43.81 | $2,383 | 28.1 | 4.0 | 80 | 6.0 | 24.1 | 0.1% | 84.1% |
| IDCC | INTERDIGITAL INC | $219.63 | $5,641 | 18.3 | 6.5 | 94 | 6.6 | 13.2 | 0.8% | 71.7% |
| PPC | PILGRIMS PRIDE CORP | $49.60 | $11,761 | 10.9 | 0.7 | 87 | 2.8 | 7.7 | 0.0% | 112.5% |
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