Strength & Weakness in Large Caps
Within the large-cap space, which includes the top 100 stocks, the weakest momentum scores correspond to stocks that have declined between -30% and -57% over the past year. ADANIGREEN leads the pack with a one-year return of -57%, followed by ATGL at -43% and ADANIENSOL at -40%. These figures represent one-year returns, though the declines from all-time highs could be even steeper. The ten stocks with the lowest momentum scores in the large-cap space include well-known names like LICI, ASIANPAINT, and TATAMOTORS. These are significant declines in reputed stocks.
However, within the same large-cap segment, some stocks have maintained strong momentum scores ranging from 86 to 98, with one-year returns still positive, varying between +11% and +58%. Even amid market turbulence, some stocks continue to outperform, illustrating the divergence in performance within the large-cap category.
Mid Cap Sell-Off and Underperformers
Among stocks ranked 101-250 by market cap, the weakest stocks have dropped between -25% and -53% in one year. Stocks like Idea, MRPL, TATATECH, GUJGASLTD, and YESBANK have seen significant erosion. Many of these stocks were top performers just last year but have now been completely tested.
On the other hand, mid-cap stocks with strong momentum scores, ranging from 94 to 100, have achieved one-year returns of +50% to +114%. This contrast highlights the importance of identifying strength within the category and adjusting positions accordingly. In challenging times, investors should consider shifting towards relatively stronger stocks as weaker ones continue to decline.
Strength & Weakness in Small Caps
The small-cap space, comprising stocks ranked 251 to 500, has been hit the hardest. The weakest stocks in this category have suffered one-year declines between -50% and -65%. Some of the most affected stocks include NETWORK18, SWSOLAR, SPARC, HONASA, CHENNPETRO, TANLA, KIRLOSENG, EASEMYTRIP, RTNINDIA, and DBREALTY, all with momentum scores below 10.
Survivors in Small Caps
Even in the small-cap space, some stocks have managed to stay strong, posting one-year gains between +57% and +101%. While their six-month returns may have softened, they are still far better positioned than the weaker names.
Despite the overall downturn, some small-cap stocks have posted impressive one-year returns between +57% and +101%. While their six-month performance may not look as strong, they still stand in stark contrast to the weaker stocks. The key takeaway is to move towards strength, focusing on stocks that continue to show resilience and have the potential to perform well in the future.
WeekendInvesting launches – Portfolio Momentum Report
Momentum Score: See what percentage of your portfolio is in high vs. low momentum stocks, giving you a snapshot of its performance and health.
Weightage Skew: Discover if certain stocks are dominating your portfolio, affecting its performance and risk balance.
Why it matters
Weak momentum stocks can limit your gains, while high momentum stocks improve capital allocation, enhancing your chances of superior performance.
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