Why Industry Momentum Matters More Than Stock Picking
Understanding the ImGeld Industry Rating gives you a structural edge, helping you identify where capital is flowing and which stocks have the highest probability of outperforming.
Most investors focus on individual companies. They look at fundamentals, valuations, earnings calls, analyst targets, and technical setups. All of that is important, but it misses a critical factor that determines how well a stock can truly perform: its industry.
The ImGeld Industry Rating identifies where institutional money is flowing across more than 200 U.S. industries. It combines multi-day momentum, earnings strength, volatility behavior, breadth confirmation, and relative performance into a single score. The result is a clear picture of which industries are gaining strength and which are deteriorating.
This matters because industry effects account for a significant portion of stock returns. Even exceptional companies can underperform if they sit inside a weakening industry. Conversely, average companies can outperform simply because they benefit from an industry tailwind.
By tracking the Top 5 improving industries, you position yourself in areas where momentum, earnings revisions, and capital flows are aligned. By monitoring the Bottom 5 weakening industries, you avoid structural headwinds that can silently erode performance.
Before committing capital to any stock, you need to understand the broader environment it operates in. The ImGeld Industry Rating provides exactly that context, making every stock decision more informed, more strategic, and more aligned with real market forces.