As an indicator, Momentum can be one of the strongest measures of success for a stock or an industry. When it comes to how the year 2024 ended, some stocks got very close to their 52-week highs but are expected to keep going even higher in 2025. Investors shouldn’t look at an absolute performance here but rather a relative one to the highs set for 2024.
Then, as investors wonder whether there is enough fuel left in the tank, they can look at some of the valuation metrics that combine both ceiling room and potential growth. One of these can be the price-to-earnings growth ratio (PEG), a measure that considers today’s stock valuation and a valuation relative to how much the market thinks earnings per share (EPS) can grow.
