Chasing momentum trends is risky business for investors. By the time many retail investors are aware of building momentum for a particular stock, it may be too late to fully capitalize on future gains. Worse yet, investors may buy a company too late in the hype cycle and wind up holding shares that are declining in value.
While timing the market is inherently challenging, investors who turn to stocks with strong analyst sentiment, lofty price targets, and compelling operations are better positioned to capture gains from a momentum play.
