Companies with upward short-term momentum that could produce short-term gains.
Why does this matter?
Many investors use momentum as a way to enter stocks that are trending up, with the expectation that they will continue to rise.
Richard Driehaus is sometimes considered the "Father of Momentum Investing". The strategy takes exception with the old stock market adage "buy low, sell high".
According to Driehaus, "far more money is made buying high and selling at even higher prices".