Buy 3 Momentum Anomaly Stocks as Volatility Hits Markets Hard

The broader U.S. equity markets witnessed intense volatility over the past few days, triggered by concerns regarding AI disruption across the spectrum, geopolitical unrest and the annulment of President Trump’s signature tariffs. As simmering tensions between the United States and Iran kept the markets on edge, the downtrend was amplified by increasing skepticism about how AI will impact the broader economy after hitting various sectors outside the purview of the technology industry. Sticky inflation and a weaker-than-expected 1.4% GDP growth compared to broad-based expectations of a 2.5% gain further spooked the markets.        

However, as the Supreme Court struck down most of Trump’s sweeping tariffs, citing that the President lacked the power to impose such tariffs, markets regained much of their lost territories only to lose them again. 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 Brookdale Senior Living Inc. BKD, Lumen Technologies, Inc. LUMN and Gold.com, Inc. GOLD 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 seven stocks that made it through this screen:

Headquartered in Brentwood, TN, Brookdale Senior Living owns, manages and operates senior living communities in the United States. With 584 communities across 41 states, serving about 51,000 residents as of Dec. 31, 2025, the company leverages deep expertise in healthcare, hospitality and real estate to create opportunities for wellness, personal growth and meaningful relationships in settings that feel like home.

The stock has jumped a whopping 173.8% in the past year but declined 6.5% in the past week. Brookdale Senior Living has a Momentum Score of A.

Based in Monroe, LA, Lumen is a global facilities-based technology and communications firm, offering clients wide-ranging integrated products and services necessary to keep up with the rapidly-evolving digital world. The company’s terrestrial and subsea fiber optic long-haul network throughout North America, Europe, Latin America and the Asia Pacific connects to metropolitan fiber networks that it operates.

The stock has soared 72.1% in the past year but lost 11.2% in the past week. Lumen has a Momentum Score of B.

Headquartered in Costa Mesa, CA, Gold.com offers a comprehensive portfolio of the precious metals and collectibles value chain. Its vertically integrated platform combines market expertise in gold, silver, platinum and palladium and collectibles that include rare coins and currency with state-of-the-art logistics, financing and minting capabilities to serve consumers, collectors and institutional clients globally.

The stock has surged 114.9% in the past year but lost 6.5% in the past week. Gold.com has a Momentum Score of B.

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This article originally published on Zacks Investment Research (zacks.com).

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