Momentum Missiles: Stocks That Soar Like Rockets Before the Rest Catch On
In investing, momentum is real, measurable, and profitable.
It’s the tendency of winning stocks to keep winning—confirmed by over two centuries of academic research.
Momentum works because it feeds on itself: rising prices attract attention, driving analyst upgrades, institutional buying, and investor FOMO.
But most investors fight it. They fear buying “too late” and cling to losers out of hope or habit.
Don’t. Instead, use Momentum Rank to find market leaders and allocate 10%–20% of your equity sleeve to them with a 20% trailing stop.
Ride the winners. Cut the losers. That’s momentum/
Momentum is the “M” in our QVM framework. Our Momentum Rank screen works like a heat-seeking missile, targeting stocks with surging prices and rising earnings. That combo is rare—and explosive.
Let’s break it down:
· Price momentum includes technical metrics like:
o Relative strength vs. the market
o Proximity to 52-week highs
o Trend indicators (like moving averages)
· Earnings momentum pulls from:
o Upward earnings revisions
o Bullish analyst upgrades
o Positive earnings surprises
This dual-momentum engine powers the screen, making it a favorite for those seeking to ride the strongest trends — before the crowd piles in.
Why does this work?
Because momentum is one of the most persistent and academically validated factors in investing. It's at the heart of strategies by heavyweights like:
· James O’Shaughnessy (author of What Works on Wall Street)
· Cliff Asness of AQR (a quant legend who showed momentum crushes in global portfolios)
· Josef Lakonishok, who helped prove value and momentum can outperform across decades.
The takeaway?
If you want to surf market waves instead of drowning in them, focus on high-Momentum Rank stocks. But remember: trends break. So always pair momentum with risk management, like trailing stops or position sizing.
Momentum may not predict the future, but it sure can pay you handsomely for showing up late to yesterday’s party — just before the music stops.
Here are three microcap plays with near-perfect momentum scores.
1. Great Lakes Dredge & Dock (GLDD)
Company Overview:
Great Lakes Dredge & Dock isn’t just moving mud—it’s moving markets. As the top dog in U.S. dredging, GLDD commands a fleet of high-tech, ocean-chewing vessels that keep America’s waterways deep, safe, and navigable. But this 130-year-old workhorse isn’t stuck in the past.
Headquartered in Houston and traded publicly since 2006, GLDD is now charting a bold new course into offshore wind—America’s next energy frontier. With 366 employees and a full suite of hopper, hydraulic, and mechanical dredges, it’s pivoting from ports to power. And here’s the kicker: as the U.S. pours billions into coastal resilience and clean energy infrastructure, GLDD could be sitting in the eye of a very profitable storm.
The market sees a niche contractor. Smart money sees a renewable energy enabler hiding in plain sight. Don’t be surprised if this dirt-digging veteran becomes a green-energy darling.
Bullish Investment Case:
Quality:
Return on Capital: 10.7%
Return on Equity: 15.7%
Operating Margin: 13.79%
Healthy F-Score: 9/9
Low bankruptcy risk (Z2 Score: 2.53) and earnings manipulation risk
Value:
PE Ratio (f): 12.8
PEG Ratio (f): 1.6
Price to Book: 1.73
Price to Sales: 1.03
EV/EBITDA: 8.05
Strong historical and forecasted earnings with improving normalized EPS
Momentum:
3-month relative strength: +25.8%
12-month price change: +21.7%
Trades 13.8% above 50-day MA and 13.9% above 200-day MA
Analyst price target of $15.00 (22.65% upside)
Overall QVM Rating:
Quality: 91
Value: 85
Momentum: 95
StockRank: 99
2. Bitcoin Depot (BTM)
Company Overview:
Most fintechs promise disruption. Bitcoin Depot actually delivers it—in cold, hard crypto. Based in Atlanta and founded in 2021, this fast-moving upstart has become one of America’s largest Bitcoin ATM operators, with a sprawling footprint of around 8,500 kiosks nationwide. Think of it as the digital on-ramp for the unbanked and underbanked—a bridge between Main Street cash and the blockchain economy.
With just 126 employees and a 2022 IPO under its belt, Bitcoin Depot is punching far above its weight. It’s also tapping into a powerful trend: the rise of “physical crypto access” in a world where trust in banks and tech giants is wearing thin. Most investors are chasing NFTs and DeFi platforms. But Bitcoin Depot is building crypto’s convenience store—one ATM at a time.
If crypto becomes as common as Coca-Cola, this little-known firm could be sitting on a digital gold mine.
Bullish Investment Case:
Quality:
Return on Capital: 86.4%
Operating Margin: 6.89%
Strong asset efficiency (Asset Turnover: 7.06)
F-Score: 5/9
Value:
PE Ratio (f): 10.5
PEG Ratio (f): 0.1 (indicating extremely undervalued vs growth)
Price to Sales: 0.54
EV/EBITDA: 7.23
Momentum:
3-month relative strength: +218%
12-month price change: +148%
Trades 49.8% above 50-day MA and 150% above 200-day MA
Analyst price target: $7.00 (38.07% upside)
Overall QVM Rating:
Quality: 82
Value: 94
Momentum: 97
StockRank: 99
Euroseas (ESEA)
Company Overview:
When it comes to old-school wealth creation, few sectors are saltier—or more cyclical—than shipping.
Euroseas Ltd., headquartered in Greece, sails straight into the heart of this global game. Since 2005, the company has owned and operated a fleet of drybulk and container ships that move everything from grain to electronics across the world's oceans. With 365 employees and a listing on the public markets since 2006, Euroseas isn’t flashy—but it’s functional. And in the shipping world, that matters more. The global supply chain may be powered by AI and apps, but it still relies on steel hulls and shipping lanes. As freight rates whip between booms and busts, Euroseas quietly keeps hauling the goods that power the global economy. Most investors overlook it.
But for those who understand how maritime cycles can mint fortunes, Euroseas is a classic "steel for the gold rush" play—just floating on water.
Bullish Investment Case:
Quality:
Return on Capital: 23.7%
Return on Equity: 39.3%
Operating Margin: 62.96%
Interest Coverage: 13.44
F-Score: 6/9
Value:
PE Ratio (f): 3.0 (extremely low)
Price to Book: 0.85
Price to Sales: 1.43
Dividend Yield (f): 5.71%
Momentum:
3-month relative strength: +34.7%
12-month price change: +40.8%
Trades 20.0% above 50-day MA and 39.2% above 200-day MA
Analyst price target: $58.33 (28.11% upside)
Overall QVM Rating:
Quality: 80
Value: 96
Momentum: 98
StockRank: 99