American Association of Individual Investors

American Association of Individual Investors

Using Momentum to Spot Outperforming Stocks

In addition to evaluating whether a stock is rising or falling, momentum also measures the movement’s strength.

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AAII
Oct 12, 2026
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Featured Tickers:NVDA,PARR

  • Momentum measures the strength of an asset’s price change over a specified time

  • Momentum can stem from the market’s fear of missing out, institutional investors’ abilities to take large positions and underpricing the effects of news

  • AAII provides the Momentum Grade and Score to help assess a stock’s relative strength

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