Investors favoring a short horizon and possessing a fair amount of risk tolerance sometimes look to stocks that have already been trending upward in an effort to capitalize on their momentum. This investment strategy often looks more toward price movement than it does the fundamentals of a company. However, some investors feel most secure in a momentum investment when they believe the firm's business is solid as well.
The S&P 500 has rallied considerably in the last year, rising by 32.3% in the 12 months through November 2024. This broad market movement has helped to lift some stocks that otherwise might not have performed as well, though the real standouts have far outpaced this level of growth during that timeframe. These are some potential momentum plays heading toward the start of the new year.
