Browse Investing

Momentum and Formula Strategies

Momentum, earnings momentum, and formula-investing terms used in rules-based strategy design.

Momentum and Formula Strategies terms describe investment styles based on valuation, growth expectations, factor exposure, momentum, contrarian signals, and research process.

Use this branch when a style label changes screening criteria, expected return drivers, benchmark fit, valuation discipline, turnover, capacity, or due-diligence evidence.

Key Terms in This Branch

TermUse it for
Earnings MomentumA style, factor, screening, or research-process term used in security selection.
Formula InvestingA term page that narrows this branch to a specific investing concept, evidence source, or decision point.
Momentum InvestingA style, factor, screening, or research-process term used in security selection.

What to Check

Check the screening rule, valuation input, growth assumption, factor exposure, benchmark, turnover, capacity, drawdown behavior, and whether the style is implemented consistently.

Common Mistakes

  • Assuming a style label explains performance by itself.
  • Ignoring valuation, factor exposure, turnover, capacity, and benchmark fit.
  • Calling a security cheap or high growth without checking the underlying assumptions.
  • Treating historical style success as a promise of future results.

This page is educational and does not recommend a specific investment strategy, security, tax treatment, or account choice.

In this section

Choose a subsection first. Deeper term pages live inside each subsection, which keeps large topic hubs readable.

Earnings Momentum

Earnings momentum is a pattern of improving reported or expected earnings that investors may use as a signal for stock selection.

Formula Investing

Formula investing uses preset rules for buying, selling, allocation, or rebalancing instead of discretionary security selection.

Momentum Investing

Momentum investing buys assets with strong recent performance or sells weak performers on the premise that trends can persist.

Revised on Sunday, June 21, 2026