The broader U.S. equity markets hit two consecutive record highs this week on the back of some solid performances by blue-chip tech stocks, which yet again portrayed that the AI boom is here to stay. The broad-based sector strength transcended the concerns regarding the economy and a slowdown in the labor market, with the August job report revealing that only 22,000 jobs were added in the month. As businesses continued to find their feet amid tariff disruptions, the Bureau of Labor Statistics announced that the U.S. economy added 911,000 fewer jobs than earlier estimated in the first three months of 2025.
However, investors looked beyond these numbers, as exemplified by the market rally, and await the producer price index and the consumer price index reports for August (slated to be released this week) for clarity on the Federal Reserve rate cut. Amid the vagaries of the market, investors often seek to employ time-tested winning strategies to fetch sustained profits. One of the most successful game plans to beat the blues is to bet on momentum stocks, like Willdan Group, Inc. WLDN, Interactive Brokers Group, Inc. IBKR and Acadian Asset Management Inc. AAMI when value or growth investing fails to generate the desired profits.
This approach primarily tends to follow the adage, “the trend is your friend.” At its core, momentum investing is “buying high and selling higher.” It is based on the idea that once a stock establishes a trend, it is more likely to continue in that direction because of the momentum that is already behind it. Momentum investing is a way to profit from the general human tendency to extrapolate current trends into the future. It is based on that gap in time before the mean reversion occurs, i.e., before prices become rational again.
Momentum strategies have been known to be alpha-generative over a long period and across market stages. Therefore, this strategy is quite tricky to implement, as detecting these trends is no child’s play. Here, we have created a strategy to help investors get in on these fast movers and rake in handsome gains. Our screen will help you benefit from long-term price momentum and a short-term pullback in price.
Screening Parameters for Momentum Anomaly Stocks
Percentage Change in Price (52 Weeks) = Top #50: This selects the top 50 stocks with the best percentage price change over the last 52 weeks. This parameter ensures we get the best stocks that have appreciated steadily over the past year.
Percentage Change in Price (1 Week) = Bottom #10: From the above 50 stocks, we then choose those that are also among the 10 worst performers over a short one-week period. This parameter picks the ones that have witnessed a short-term pullback in price.
Zacks Rank #1: Stocks sporting a Zacks Rank #1 (Strong Buy) have a proven history of outperformance irrespective of the market conditions. You can see the complete list of today’s Zacks #1 Rank stocks here.
Momentum Style Score of B or Better: A top Momentum Style Score knocks out a lot of the screening process, as it takes into account several factors that include volume change and performance relative to its peers. It indicates when the timing is best to grab a stock and take advantage of its momentum with the highest probability of success. Stocks with a Momentum Score of A or B, when combined with a Zacks Rank #1 or 2 (Buy), handily outperform other stocks.
Current Price greater than $5: The stocks must all be trading at a minimum of $5.
Market Capitalization = Top #3000: We have chosen stocks that are among the top 3000 in terms of market value to ensure the stability of price.
Average 20-Day Volume greater than 100,000: A substantial trading volume ensures that these stocks are easily tradable.
Here are three of the five stocks that made it through this screen:
Headquartered in Anaheim, CA, Willdan Group provides professional, technical and consulting services primarily in the United States. Serving utilities, federal agencies and private industry, Willdan Group offers electric grid solutions, energy efficiency and sustainability services and municipal financial consulting.
The stock has skyrocketed 152.8% in the past year but has declined 11.1% in the past week. Willdan Group has a Momentum Score of B.
Headquartered in Greenwich, CT, Interactive Brokers operates as an automated global electronic broker. The company specializes in routing orders and executing and processing trades in securities, futures, foreign exchange instruments, bonds, mutual funds, exchange-traded funds and precious metals on more than 160 electronic exchanges and market centers in 37 countries and 28 currencies. Additionally, customers can use the company’s trading platform to trade certain cryptocurrencies through third-party cryptocurrency service providers.
The stock has soared 103.9% in the past year but has lost 2.6% in the past week. Interactive Brokers has a Momentum Score of B.
Based in Boston, MS, Acadian is an asset management firm with approximately $151 billion of assets under management as of June 30, 2025. Acadian offers institutional investors across the globe access to a diversified array of systematic investment strategies designed to meet a range of risk and return objectives.
The stock has surged 99.2% in the past year but has declined 7.8% in the past week. Acadian has a Momentum Score of A.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance.
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Interactive Brokers Group, Inc. (IBKR): Free Stock Analysis Report Willdan Group, Inc. (WLDN): Free Stock Analysis Report Acadian Asset Management Inc. (AAMI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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