What are Momentum Stocks?
Momentum stocks are those that are in a strong upward or downward movement. Momentum investors adhere to the idea that a trend will continue, which means they invest in stocks that have risen sharply in the recent past.
Technology Sector: A Hotspot for Momentum Stocks
The technology sector is a crucial area for momentum investors. Here are some of the top tech stocks currently in focus:
| Company | Stock Price (USD) | Market Capitalization (USD Billion) | EPS Growth (%) | Revenue Growth (%) |
|---|---|---|---|---|
| Sezzle Inc. (SEZL) | 105.31 | 3.5 | 347 | 123 |
| Innodata Inc. (INOD) | 36.48 | 1.2 | 626 | 120 |
| Mobileye Global Inc. (MBLY) | 15.61 | 12.7 | 54 | 83 |
- Sezzle Inc. (SEZL): Sezzle is a leading “Buy Now Pay Later” (BNPL) company primarily targeting Generation Z and millennials. In the first quarter of 2025, the company reported significant growth, with a revenue increase of 123% compared to the previous year.
- Innodata Inc. (INOD): Innodata is a data engineering company that helps major tech firms build and scale generative AI systems. In the first quarter of 2025, it saw revenue growth of 120% compared to the previous year.
- Mobileye Global Inc. (MBLY): Mobileye is a leading tech firm focused on advanced driver assistance systems (ADAS). On March 25, Mobileye announced a partnership with Volkswagen Group.
Other Momentum Stocks
Aside from tech stocks, there are other companies that qualify as momentum stocks. Examples include:
- American Public Education (APEI): a strong momentum stock due to recent trends.
- MAG Silver (MAG): considered a strong momentum stock as it focuses on trend continuations.
Conclusion
The Nasdaq offers a variety of momentum stocks, particularly in the technology sector, which can be attractive to private investors. These stocks are based on the idea that strong trends will continue.