As the 2023 rally continues, the opportunity for gains by owning the best momentum stocks persists. At the time of this writing, as many as 417 US stocks are trading within 5% of their 52 week high – many stocks are rising in the shadow of META📈, NVDA📈and MSFT📈.
That’s a lot of top momentum stocks. So how to find the stocks with the highest potential within this group?
In this blog post, we show you how to screen for the best momentum stocks with the strongest underlying fundamentals. In 4 easy steps.
STEP 1 – Screen for momentum stocks within 5% of their 52w high
In the Ziggma screener, go to the sliding scale that lets you set the distance (in %) from a stock’s 52 week high. You can find this sliding scale on the right-hand side just above the Save Screener button. Move the slider to the left until you reach 5%.
STEP 2 – Screen for stocks with a stock score of 90 or higher
Next, navigate to the dropdown menu allowing you to screen by Ziggma Stock Score. Select a Ziggma Stock Score range of 90-100. By making this selection, your search results will contain only stocks that rank in the top percentile for fundamental data versus their industry peers.
STEP 3 – Screen for stocks with a stock score of 90 or higher
Third, let’s look for growth momentum in fundamental data by setting the growth score to 90 or higher. The growth score captures a set of growth performance indicators, such as growth in revenue, income, cash flow, EBITDA and more. So companies with a growth score of 90 or higher outperform 90% of their peers when it comes to growth in business fundamentals.
STEP 4 – Review search results for best matches with the screener quick view
The final step consists of reviewing your screen results. The screener’s quick view function allows you to do an initial run through your search results and glimpse core stock parameters.
You can use the star icon to easily build watchlists or virtual portfolios with your top picks from this shortlist.
BONUS TIP – Save your screen
As a Premium member you benefit from the “save your screen” feature. Simply hit Save Screen, enter a name for the screen and check back in a few days to see whether there are new stocks that fit your search setting.
Screening by Ziggma Score is a Premium feature. If you are not yet on the Premium plan, you can try it risk-free on a 7-day free trial.