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Posted August 29, 2025 at 10:15 am
Momentum investing capitalizes on the tendency of stocks to continue their strong trajectory. Rather than simply chasing rising prices, this strategy systematically identifies securities that demonstrate consistent outperformance relative to both industry peers and broader market indices, backed by solid fundamentals and improving business metrics.
The approach exploits several interconnected market forces that sustain price momentum. Markets often require extended periods to fully incorporate positive earnings surprises, creating opportunities for continued price appreciation as valuations catch up to reality. Substantial institutional buying can generate sustained upward pressure over multiple months. Furthermore, favorable corporate developments tend to cascade through investment circles progressively, creating successive waves of buying activity as different investor groups recognize and act on emerging opportunities.
Validea’s systematic methodology strengthens conventional momentum indicators by incorporating proven investment principles from legendary market practitioners. This creates more refined selection criteria that evaluate both price performance patterns and improving fundamental business drivers such as accelerating earnings growth, expanding profit margins, increasing return on equity, and enhanced cash flow generation. This dual-focus analysis helps separate companies experiencing genuine operational enhancement from those benefiting from temporary market sentiment, ultimately increasing the likelihood of maintaining positive momentum over time.
Here are the stocks for August of 2025.
| Ticker | Company Name | Price | Market Cap ($mil) | PE Ratio | Price/ Sales | Relative Strength | Momentum Percentile | Twelve Minus One Return | Fundamental Momentum Percentile | 6 Mo Rel Str |
|---|---|---|---|---|---|---|---|---|---|---|
| XYF | X FINANCIAL (ADR) | $14.83 | $859 | 2.8 | 0.8 | 94 | 3 | 201.7% | 8 | 83 |
| BBAR | BANCO BBVA ARGENTINA SA (ADR) | $12.58 | $2,527 | 9.6 | 1.3 | 77 | 10 | 74.2% | 5 | 19 |
| LPLA | LPL FINANCIAL HOLDINGS INC | $364.83 | $29,282 | 25.0 | 2.1 | 86 | 9 | 76.9% | 33 | 53 |
| STRL | STERLING INFRASTRUCTURE INC | $290.95 | $8,802 | 31.4 | 4.1 | 92 | 5 | 126.6% | 4 | 93 |
| KGC | KINROSS GOLD CORP | $20.22 | $24,547 | 16.3 | 4.0 | 91 | 9 | 82.1% | 16 | 91 |
| GFI | GOLD FIELDS LTD (ADR) | $32.12 | $29,683 | 15.6 | 4.5 | 91 | 9 | 80.1% | 11 | 90 |
| AGX | ARGAN INC | $242.08 | $3,095 | 31.8 | 3.4 | 94 | 3 | 212.3% | 78 | 91 |
| DXPE | DXP ENTERPRISES INC | $124.85 | $1,949 | 23.7 | 1.0 | 92 | 6 | 109.5% | 14 | 83 |
| YALA | YALLA GROUP LTD – ADR | $7.81 | $1,049 | 9.8 | 3.0 | 89 | 8 | 93.3% | 28 | 91 |
| IBEX | IBEX LTD | $29.53 | $393 | 12.9 | 0.7 | 87 | 10 | 74.8% | 30 | 71 |
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Originally Posted August 29, 2025 – Momentum Stocks Meeting the Tests of Investing Legends
Information posted on IBKR Campus that is provided by third-parties does NOT constitute a recommendation that you should contract for the services of that third party. Third-party participants who contribute to IBKR Campus are independent of Interactive Brokers and Interactive Brokers does not make any representations or warranties concerning the services offered, their past or future performance, or the accuracy of the information provided by the third party. Past performance is no guarantee of future results.
This material is from Validea Capital Management and is being posted with its permission. The views expressed in this material are solely those of the author and/or Validea Capital Management and Interactive Brokers is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to buy or sell any security. It should not be construed as research or investment advice or a recommendation to buy, sell or hold any security or commodity. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.
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