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.

How long should you hold momentum stocks?

There's no perfect answer. It's impossible to accurately time when a momentum stock will reach a peak. But with momentum investing, it's extra important to monitor your investments closely and to be prepared to act if things go wrong.

What is a strong momentum stock?

The best momentum stocks for you depend on your specific investment goals and risk tolerance. But the strongest momentum stocks tend to be those whose recent business results have been extremely strong -- not just those whose stock prices have risen.

Do momentum stocks pay dividends?

Some momentum stocks pay dividends, and others don't. It's entirely possible for the stock of a mature, dividend-paying company to be among the market's top performers over a given time period.

Top Momentum Stocks in 2026

Investing in Momentum Stocks in 2026

By Matthew Frankel, CFP – Updated Mar 15, 2026 at 9:18 AM EST | Fact-checked by Frank Bass

Key Points

Momentum investing focuses on stocks with sharp recent price increases, aiming for quick profits.
Top momentum stocks show strong business growth aligning with their stock performance.
Investors should be prepared for volatility and assess fundamentals in momentum stocks.

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 risen considerably to take advantage of the "momentum" in their businesses -- and in their stock prices.

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Person drawing line above graph superimposed on glass in front of them. — Image source: Getty Images.

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Investors should be aware that there is no single definition of momentum investing. Momentum investors often focus on data such as trading volume and 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 trading above their moving averages as a sign that they will continue to move higher.

It's also worth noting that momentum investing isn't only for stocks that are moving higher. Specifically, short-sellers aim to profit from stocks in a downward trend. Momentum investing is also a popular strategy among professional investors, such as hedge funds.

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Momentum Trading

Momentum Trading involves capitalizing on short-term price trends by buying assets with recent strong performance, aiming for quick gains.

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Ticker Information Table
Name and ticker	Market capMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.	Dividend yield	Industry
Corning (NYSE:GLW)	$150.1 billion	0.64%	Electronic Equipment, Instruments and Components
XPO (NYSE:XPO)	$24.0 billion	0.00%	Road and Rail
Casey's General Stores (NASDAQ:CASY)	$29.9 billion	0.28%	Food and Staples Retailing
Costco Wholesale (NASDAQ:COST)	$406.5 billion	0.59%	Food and Staples Retailing
Lumentum (NASDAQ:LITE)	$58.5 billion	0.00%	Communications Equipment

Data as of Jul 16, 2026. Showing 5 of 5 total entries.

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1. Corning

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NYSE: GLW

Corning

Today's Change

(-6.91%) $-12.97

Current Price

$174.67

Key Data Points

Market Cap

$150B

Day's Range

$167.09 - $187.18

52wk Range

$53.18 - $271.78

Volume

11K

Avg Vol

14.6M

Gross Margin

35.64%

Dividend Yield

0.64%

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Ticker symbol: GLW
YTD performance: 48% (3/15/2026)
Market Cap: $111 billion
1-sentence description: Manufacturer of specialty materials, including for some of the most innovative technologies.

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2. XPO

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NYSE: XPO

XPO

Today's Change

(-2.44%) $-5.12

Current Price

$204.85

Key Data Points

Market Cap

$24B

Day's Range

$203.78 - $210.98

52wk Range

$116.68 - $232.05

Volume

34.4K

Avg Vol

1.5M

Gross Margin

12.18%

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Ticker symbol: XPO
YTD performance: 34% (3/15/2026)
Market Cap: $21.3 billion
1-sentence description: Freight transportation company with operations in the U.S. and Europe.

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3. Casey's General Stores

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NASDAQ: CASY

Casey's General Stores

Today's Change

(-4.57%) $-38.70

Current Price

$808.49

Key Data Points

Market Cap

$30B

Day's Range

$805.63 - $847.17

52wk Range

$490.00 - $927.85

Volume

Avg Vol

536.1K

Gross Margin

22.04%

Dividend Yield

0.28%

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Ticker symbol: CASY
YTD performance: 20% (3/15/2026)
Market Cap: $24.4 billion
1-sentence description: Leading operator of convenience stores, especially in rural areas.

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4. Costco

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NASDAQ: COST

Costco Wholesale

Today's Change

(-0.62%) $-5.70

Current Price

$916.05

Key Data Points

Market Cap

$406B

Day's Range

$910.49 - $927.44

52wk Range

$844.06 - $1096.50

Volume

Avg Vol

2.3M

Gross Margin

12.88%

Dividend Yield

0.59%

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Ticker symbol: COST
YTD performance: 17% (3/15/2026)
Market Cap: $447 billion
1-sentence description: Leading retailer with more than 900 warehouse-style wholesale clubs.

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5. Lumentum Holdings

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NASDAQ: LITE

Lumentum

Today's Change

(-7.61%) $-62.05

Current Price

$752.75

Key Data Points

Market Cap

$59B

Day's Range

$716.18 - $820.10

52wk Range

$97.55 - $1085.68

Volume

966

Avg Vol

5.6M

Gross Margin

35.36%

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Ticker symbol: LITE
YTD performance: 69%
Market Cap: $44.5 billion
1-sentence description: Manufacturer of specialized optical and photonic products, used in networking and laser applications.

Benefits and risks of investing in momentum stocks

The main benefit of investing in momentum stocks is the potential for outsize gains if the stock continues its upward trajectory. The five momentum stocks listed here not only exhibit strong stock price momentum but also demonstrate excellent momentum within their respective businesses.

The flip side is that momentum stocks tend to exhibit volatility significantly greater than that of the typical S&P 500 company. Don't invest in momentum stocks if you can't stomach large price swings, and it's a good idea not to invest with money you can't afford to lose.

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Common mistakes to avoid with momentum investing

There are some major pitfalls to avoid when investing in momentum stocks. The first is underestimating the volatility involved with momentum stock investing. Only invest if you're comfortable with large price swings in the stocks you own.

Another mistake is focusing solely on the stock price, rather than the business itself. In other words, it's one thing for a stock to double in a year. It's another (and better) reason for a stock to double: its business is doing very well.

Who should invest in momentum stocks?

Momentum stocks are best suited for investors with a relatively high risk tolerance, as they tend to be more volatile than typical S&P 500 companies. And for all investors, it's important to do your homework -- it's rarely a smart idea to invest in a stock just because it's been trending higher. You want to make sure you're investing in a solid business, too.

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 capitalize on 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.

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FAQ

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Momentum stocks FAQ

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About the Author

Matt Frankel, CFP®, is a contributing Motley Fool stock market analyst specializing in the real estate and financial sectors. Prior to The Motley Fool, Matt taught high school and college mathematics. He holds a bachelor’s degree in physics from the University of South Carolina, a master’s degree in mathematics from Nova Southeastern University, and a graduate certificate in financial planning from Florida State University. He won a SABEW award for coverage of the 2017 Tax Cuts and Jobs Act. He is also regularly interviewed by Cheddar, Globe St, The National Desk, and other TV networks and publications for his real estate, financial, stock market, and investing expertise.

TMFMattFrankel

@MattFrankelUSC

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Matt Frankel has positions in Sea Limited. The Motley Fool has positions in and recommends Meta Platforms, Nvidia, and Sea Limited. The Motley Fool has a disclosure policy.

Investing in Momentum Stocks in 2026

Key Points

1. Corning

Key Data Points

2. XPO

Key Data Points

3. Casey's General Stores

Key Data Points

4. Costco

Key Data Points

5. Lumentum Holdings

Key Data Points

Benefits and risks of investing in momentum stocks

Related investing topics

Best Consumer Discretionary Stocks to Buy in 2026 and How to Invest in Them

Best Tech Stocks to Buy in 2026 and How to Invest in Them

FAANG Stocks: What They Are and How to Invest

Best Semiconductor Stocks for 2026 and How to Invest

Common mistakes to avoid with momentum investing

Who should invest in momentum stocks?

Momentum stocks can be a good investment

FAQ

Momentum stocks FAQ

About the Author

Read Next

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Key Data Points

Best Consumer Discretionary Stocks to Buy in 2026 and How to Invest in Them

Best Tech Stocks to Buy in 2026 and How to Invest in Them

FAANG Stocks: What They Are and How to Invest

Best Semiconductor Stocks for 2026 and How to Invest

Momentum stocks FAQ

What indicators are best for analyzing momentum stocks?

What are the top momentum stocks?

How do I find momentum stocks?

Is momentum investing good?

How long should you hold momentum stocks?

What is a strong momentum stock?

Do momentum stocks pay dividends?

Five momentum stocks to put on your radar

1. Corning

2. XPO

3. Casey's General Stores

4. Costco

5. Lumentum Holdings

Benefits and risks of investing in momentum stocks

Related investing topics

Common mistakes to avoid with momentum investing

Who should invest in momentum stocks?

Momentum stocks can be a good investment

FAQ

Key Data Points

Key Data Points

Key Data Points

Key Data Points