Momentum stocks are those that have experienced sharp upward price movements over a relatively short period.
Momentum investing differs significantly from many of the strategies typically employed by long-term investors. The goal isn't to buy a stock at an attractive valuation. Rather, momentum investors aim to buy stocks that have already gone up considerably to take advantage of the "momentum" in their business -- and in their stock price.
Investors should be aware that there is no single definition of momentum investing. Momentum investors often pay attention to data such as trading volume and like to use technical indicators like moving averages to assess where a stock might go in the short term and guide their strategy. Generally, they look for stocks that are trading above their moving averages as a sign that they will continue moving higher.
It's also worth noting that momentum investing isn't only for stocks that are moving higher. Specifically, short-sellers look to capitalize on stocks on a downward trend. Momentum investing can also be a popular strategy among professional investors such as hedge funds.
Five momentum stocks
Five momentum stocks to put on your radar
The S&P 500 is in a bull market, and the S&P, Dow Jones Industrial Average, and Nasdaq have all reached new highs recently. So, it could be an exciting time to be a momentum investor.
While there's no way to time the market or know what stocks will gain momentum at any given time, there are some interesting opportunities for patient momentum stock investors.
Keep reading to see five momentum stocks that have already delivered strong results for investors in 2025 that could continue to outperform.
Momentum Trading
| Name and ticker | Market cap | Dividend yield | Industry |
|---|---|---|---|
| Celsius (NASDAQ:CELH) | $16 billion | 0.00% | Beverages |
| Carvana (NYSE:CVNA) | $51 billion | 0.00% | Specialty Retail |
| eBay (NASDAQ:EBAY) | $41 billion | 1.56% | Multiline Retail |
| Robinhood Markets (NASDAQ:HOOD) | $92 billion | 0.00% | Capital Markets |
| Kratos Defense & Security Solutions (NASDAQ:KTOS) | $11 billion | 0.00% | Aerospace and Defense |
Celsius
1. Celsius Holdings
- Ticker symbol: CELH
- YTD performance: 115% (8/15/2025)
- Market Cap: $15 billion
- 1-sentence description: One of the leading manufacturers of energy drinks.
Carvana
2. Carvana
- Ticker symbol: CVNA
- YTD performance: 68%
- Market Cap: $74 billion
- 1-sentence description: Innovative used car platform designed for online shopping and no-haggle pricing.
eBay
3. eBay
- Ticker symbol: EBAY
- YTD performance: 59%
- Market Cap: $45 billion
- 1-sentence description: Operates one of the largest e-commerce and resale platforms in the world.
Robinhood
4. Robinhood Markets
- Ticker symbol: HOOD
- YTD performance: 197% (8/15/2025)
- Market Cap: $98 billion
- 1-sentence description: Operates a popular stock and cryptocurrency trading platform.
Kratos
5. Kratos Defense and Security
- Ticker symbol: KTOS
- YTD performance: 162% (8/15/2025)
- Market Cap: $12 billion
- 1-sentence description: Develops AI-powered solutions for both military and civilian applications.
Related investing topics
Momentum stocks can be a good investment
Past performance is not a guarantee of future returns, but it is often a good indicator of positive trends in a business, which can certainly lead to superior returns over time. Plus, bull markets can be a great opportunity to take advantage of strong momentum in excellent, well-run businesses. If you’re looking for stocks that can thrive in the new bull market, this list represents a good starting point.
FAQ
Momentum stocks FAQ
What indicators are best for analyzing momentum stocks?
Different investors have different indicators. Some look for stocks trading for a certain percentage over their 200-day moving average, just to name one example.
What are the top momentum stocks?
The top momentum stocks are those that have recently outperformed the S&P 500 and have excellent fundamentals in their underlying businesses. Strong growth, improving profitability, and an expanding market opportunity are just a few examples of factors to consider.
How do I find momentum stocks?
The first step to finding momentum stocks is to screen for companies that have recently outperformed the S&P 500 by a significant margin. Then, take a closer look at each stock to figure out why they have performed so well, and whether there's still upside potential if the company continues to execute on its strategy.
Is momentum investing good?
Momentum investing can be a great way to identify opportunities, but like any other investment strategy, it isn't perfect. Just because a stock has recently outperformed the market doesn't mean it will continue to do so. That's why it's important to not only buy stocks with recent momentum, but also those with durable competitive advantages and massive market opportunities, so they make excellent long-term investments as well.
