By the time you’re reading this, odds are good that I’ve already released the very first group of stock recommendations for my brand-new Infinite Momentum Alert.
Every one of them rates extremely highly on the Momentum, Quality and Value factors — which you’ve come to know and love from us here in Stock Power Daily.
But one stock among these … is something special.
It’s what I’ve taken to calling a “Momentum Aristocrat.”
You see, the Infinite Momentum strategy relies on a 10-stock portfolio of names set to trounce the market over the next four weeks.
At the end of those four weeks, we refresh the portfolio — booting out whichever positions no longer make the top 10, and replacing them with the stocks that do.
The strategy, naturally, sees a good amount of turnover. Most stocks don’t hold their top-10 position for very long.
But one stock has stayed near the top of the pack for five months now.
Not only that, but it’s scored in the top half of all stocks on the Quality factor for seven years straight … and in the top 25% for all but two quarters since 2020.
These two factors combined make this stock the reigning Momentum Aristocrat of the portfolio … and a standout must-buy among it.
I’ll tell you exactly why today … and show you how you can get the ticker symbol into your portfolio before it runs away. If you’re already champing at the bit for my recommendations, click here for information on how to access them now.
For everyone else, let’s start by answering one question…
What Makes a Momentum Aristocrat?
I’m going to level with you on something that’ll sound a bit counterintuitive at first.
Strong momentum alone is not enough to make a Momentum Aristocrat…
The reason is that momentum, as a stock market phenomenon, is more short-lived than many other factors. Very few stocks consistently hold onto market-beating momentum for more than a year … and the ones that do can be vulnerable to vicious post-bubble busts.
My research shows that it’s incredibly rare for a stock to maintain a high Momentum rating for more than 12 months. Most often, it doesn’t last much longer than two months. And stocks that only have strong Momentum scores are largely driven by speculation and hype — not rock-solid business models.
That’s why my Infinite Momentum system insists on more than just strong momentum. Much more.
It screens and ranks on Quality and Value metrics as well. And doing so helps us find stocks with sustainable momentum … an incredibly important trait when constructing an effective market-beating portfolio.
Think of it like this…
A pure-momentum portfolio is like a ’71 Ford Pinto with a rocket strapped to the roof. It’ll go fast … once. Oh, and there’s also one small issue: You probably won’t make it out alive.
But a portfolio with not just Momentum, but also strong Quality and Value? That’s like a brand-new, top-of-the-line Toyota Supra. You can run that baby for 200,000 miles and probably a lot more. And it’ll still fly past everything else on the road.
I know I’m not alone in wanting the latter rather than the former.
And it just makes sense. We can’t expect a stock without strong fundamentals — what the Quality and Value factors cover — to consistently beat the market. All the hype in the world isn’t enough to prop up a terrible, money-losing company.
Which is what makes one particular “Momentum Aristocrat” I’ve been referring to, a homebuilder, so special…
A Cut Above the Rest
I don’t want to give you the wrong idea. To use my Infinite Momentum system correctly, you need to own all the stocks I recommend each month. That’s the only way I’ve found to outperform the market by 300-to-1 over time.
But I want to highlight this stock today, as it’s a perfect example of what can happen when all these factors combine in a beautiful harmonious fashion.
Get this … the stock is up more than 100% this year!
But underneath the price momentum of this stock lies a glowing fundamental picture that tells me this stock has earned its spot in my inaugural Infinite Momentum Alert portfolio.
The company’s price-to-earnings ratio is just 4.5, among the lowest in its industry. And that’s after its 100% run-up this year.
And again, this stock is in the homebuilding sector, which has been particularly strong this year.
Despite its huge gain, the growth runway is long for this company. It’s still less than a $1 billion market cap, which puts it in small-cap territory with an even greater chance of beating the market.
Overall, the stock scores a “Strong Bullish” 97 out of 100 in my proprietary Green Zone Power Ratings…
Now, I’d love to be able to tell you the name of this stock. But out of respect for my new Infinite Momentum Alert subscribers, I won’t do it here.
The size of this stock means directly sharing its ticker here could make it run too high too fast.
Of course, the easiest way to get the name of this stock (and nine others I recommend owning over the next four weeks) is to become a charter member of my new stock trading advisory, Infinite Momentum Alert.
You can find all the information you need to do just that by clicking here and attending my Infinite Momentum Summit. You’ll see Momentum (and Quality … and Value) in action!
To good profits,
Adam O’Dell
Chief Investment Strategist, Money & Markets
