Maximizing Stock Investments: The Key Fundamentals You Should Know
When it comes to stock fundamentals, three things matter most: sales, earnings, and profit margins.
Editor’s Note: Last week, my colleague Luke Lango introduced his new stock-picking tool called Auspex during a special event.
In summary, Auspex analyzes thousands of stocks each month to identify those that meet Luke’s stringent fundamental criteria. Early testing suggests Auspex has outperformed the market by around 10X!
You can still catch a replay of The Auspex Anomaly Event here.
Now, let’s turn it over to Luke as he explains his methodology and how easily the system can be used.
Take it away, Luke.
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As we approach the holiday season, many people eagerly await their time off and celebrations with family. However, December also brings exciting developments in the stock market.
For months, my team has been working on a revolutionary stock-picking tool, which we finally unveiled last week. (Watch the replay of that event here!)
This tool analyzes thousands of stocks every month to pinpoint those likely to rise in value over the next 30 days. We seek stocks with robust fundamental, technical, and sentimental support.
We named this advanced tool Auspex, inspired by ancient Roman officials who interpreted signs for decision-making.
Every month, Auspex performs a detailed examination of the market, assessing a multitude of data points to identify stocks that are strong across all areas.
What does that encompass? Let’s explore the fundamental aspect of Auspex’s stock analysis.
Numerous fundamental factors exist, leading to various ways a stock can be considered fundamentally strong.
Expertly Trained to Find Top Fundamentals
In our experience, three factors are crucial in assessing stock fundamentals: sales, earnings, and profit margins.
Are sales increasing? How about earnings? Are their growth trends accelerating or slowing down? What is happening with profit margins—are they expanding or contracting?
To identify the market’s top-performing stocks, we focus on those with rising sales and earnings. Additionally, we look for signs of sales growth acceleration, indicating underlying momentum. The same criteria apply to earnings growth.
We also seek profit margin expansion, meaning we want to find businesses whose profit margins are higher than those from the previous year.
If a stock satisfies these conditions, Auspex categorizes it as fundamentally strong.
However, such strict criteria limit the number of firms that fit this definition.
Only a small number of stocks exhibit simultaneous rising and accelerating sales, earnings growth, and expanding profit margins.
During Auspex’s recent market scan of around 14,000 stocks, we found that merely 300 of those met the criteria for fundamental strength.
This represents approximately 2% of all examined stocks.
But the selection from Auspex is even more refined.
Final Thoughts on Stock Picking Excellence
The 300 stocks identified as fundamentally strong are merely the starting point. We then apply technical and sentimental analyses to narrow this list further.
From our recent scan, this rigorous evaluation reduced the list from around 300 to only 10 stocks.
According to our model, these ten stocks were among the best options for investment at that moment.
Impressively, Auspex has demonstrated effectiveness.
Back testing indicates Auspex has outperformed the market by approximately 10X in several timeframes. Furthermore, it has provided strong positive returns for subscribers over the five months it has been in operation.
We believe these results are remarkable.
Best of all, it only requires five to ten minutes each month. You’ll receive notifications, purchase the recommended stocks, and review your holdings the following month – it’s that straightforward.
We are thrilled to have launched this innovative screening tool during a special broadcast.
If you aim to secure consistent profits in a shifting market, be sure to watch the replay of this crucial reveal.
Sincerely,
Luke Lango
Editor, Hypergrowth Investing