What are Momentum Stocks?
Momentum stocks are those that are experiencing a strong upward or downward movement. Momentum investors follow the idea that a trend will continue, which means they invest in stocks that have risen significantly in the recent past.
Technology Sector: A Hotspot for Momentum Stocks
The technology sector is a key area for momentum investors. Here are some of the best tech stocks currently in focus:
| Company | Stock Price (USD) | Market Capitalization (Billion USD) | 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 saw significant growth, with a 123% increase in revenue compared to the previous year.
- Innodata Inc. (INOD): Innodata is a data engineering company that helps large tech firms build and scale generative AI systems. The company reported a revenue growth of 120% year-over-year in the first quarter of 2025.
- Mobileye Global Inc. (MBLY): Mobileye is a leading tech company specializing in advanced driver-assistance systems (ADAS). On March 25, Mobileye announced a partnership with the Volkswagen Group.
Other Momentum Stocks
Besides tech stocks, there are other companies that qualify as momentum stocks. Examples include:
- American Public Education (APEI): 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, especially in the technology sector, which can be attractive to private investors. These stocks are based on the idea that strong trends will continue.