### Unveiling the Power of Momentum Investing: Three Companies to Watch
#### Understanding Momentum Investing
Momentum investing is a strategy based on the premise that stocks that have been performing well recently are likely to continue to do so, while underperforming stocks will continue to decline. This approach was introduced by researchers Narasimhan Jegadeesh and Sheridan Titman in 1993.
#### The Success of Momentum Investing
Over the past decade, momentum-based ETFs have proven to outperform traditional indices like the S&P 500. For example, the iShares MSCI USA Momentum Factor ETF has delivered a cumulative total return of 251%, surpassing the 245% return of the S&P 500.
#### Top Momentum Companies
Here are three companies that exemplify strong momentum characteristics and have the potential for continued growth:
### 1. Intuitive Surgical: Revolutionizing Healthcare
Intuitive Surgical (NASDAQ:) has shown a total return of 66% in the last twelve months, outperforming the S&P 500 by 30%. The company’s innovative da Vinci robot has transformed surgical procedures by reducing human errors, enhancing precision, and minimizing invasiveness. Intuitive Surgical continues to see robust revenue growth and profitability, solidifying its position in the healthcare sector.
### 2. Dell Technologies Inc: Embracing Artificial Intelligence
Dell Technologies Inc (NYSE:) has returned a total of 67% in the past year, showcasing its ability to adapt to the evolving tech landscape. By shifting its focus towards AI-optimized servers for data centers, Dell has experienced significant growth in this segment. With a backlog of AI server orders and potential resurgence in its PC business, Dell is poised for further success.
### 3. Eli Lilly: Leading in Pharmaceutical Innovation
Eli Lilly (NYSE:) stands out as a dominant force in the pharmaceutical industry, with a market cap surpassing its competitors. The company’s GLP-1 drugs for diabetes and weight loss, such as Mounjaro and Zepbound, have been driving impressive sales growth. Compared to its rivals, Eli Lilly has diversified revenue streams and is gaining market share, positioning itself for sustained growth.
#### Analysis
Momentum investing offers investors the opportunity to capitalize on the upward trends of high-performing stocks. By identifying companies with strong momentum characteristics like Intuitive Surgical, Dell Technologies Inc, and Eli Lilly, investors can potentially benefit from continued growth and profitability. As these companies innovate and expand their market presence, they present attractive investment opportunities for those seeking to maximize their returns in the dynamic world of finance.