Unveiling the Power of Steady Investment: Meet Stock Grader
Fables like “The Tortoise and the Hare” carry important lessons. In investing, patience and careful planning often lead to success.
The Lesson from an Age-Old Fable
A tortoise and a hare race against each other, with the hare believing his speed will guarantee victory. Overconfident, he takes a nap, but when he wakes up, the tortoise is nearing the finish line. Despite the hare’s speed, the tortoise wins through hard work and determination. This story illustrates that steady effort often outweighs quick but careless actions.
The Investor’s Race: Tortoise vs. Hare
So, what does this fable mean for stock investing? As growth investors, we want to avoid being like the hare who misses out on opportunities by being inactive. Instead, we should act with care and insight. Many investors fall into the trap of acting hastily during market fluctuations, creating unnecessary stress and missed chances.
The Rare Breed on Wall Street
On Wall Street, the ‘tortoise’ approach is less common. Successful investors analyze data meticulously and seek optimal buying opportunities, avoiding impulsive reactions. They base their decisions on facts rather than fleeting emotions, allowing them to navigate turbulent markets more effectively.
My Approach as a Tortoise Investor
As a long-term quantitative investor focused on fundamentals like earnings and sales growth, I align with the tortoise’s strategy. I thoroughly analyze stock data to assess real potential. If a stock shows strong fundamentals, I may hold it for the long run; if not, I steer clear despite popular opinion. Conversely, I also remain alert to changes in a stock’s fundamentals, deciding to sell if the outlook dims.
Introducing Stock Grader
To aid in stock selection, I’ve upgraded my tool, Portfolio Grader, to the new Stock Grader. This enhanced tool facilitates the identification of fundamentally strong stocks, even in fluctuating market conditions.
Exploring Stock Grader’s Features
Upon visiting the Stock Grader homepage, users can simply enter the stock ticker to receive valuable insights, including the Fundamental Grade, the Quantitative Grade, and overall stock performance scores.
Understanding the Fundamental Grade
Here are eight factors I examine to determine a stock’s Fundamental Grade:
- 1. Sales Growth: Vital for assessing a company’s ongoing success.
- 2. Operating Margin Growth: Indicates pricing power and efficiency.
- 3. Earnings Growth: Shows a company’s profitability over time.
- 4. Earnings Momentum: Suggests trends in profit increase.
- 5. Earnings Surprises: Occurs when actual earnings exceed expectations.
- 6. Analyst Earnings Revisions: Positive changes from analysts reflect confidence.
- 7. Cash Flow: Highlights financial health after covering business costs.
- 8. Return on Equity: Measures profit generated from shareholder investments.
The Importance of Quantitative Measures
The Quantitative Grade provides insight into institutional buying trends. High buying pressure often correlates with stronger stock performance. My Stock Grader combines the Fundamental and Quantitative Grades to offer an overall evaluation, rated from A to F:
- A = Strong Buy
- B = Buy
- C = Hold
- D = Sell
- F = Strong Sell
Unlocking Investment Insights: Explore the Power of Stock Grader
What to Expect from Stock Grader
Once you input a stock into the Stock Grader tool, here’s a glimpse of what you’ll see:
The overview presents the Total Grade at the top, with the Fundamental Grade and Quantitative Grade shown below. You will find the Fundamental Grade reflecting each of the eight vital factors and a brief description of the Quantitative Grade just beneath. Additionally, a company profile snapshot appears on the right side, complemented by an interactive map above this profile.
Recent Grades and Stock Data
As illustrated below, the display includes a chart of the stock’s Recent Total Grades on the left and relevant stock data on the right.
Create Your Own Stock Portfolio
One notable feature of Stock Grader is the ability to create a personalized portfolio. This lets you track the stocks you currently own or intend to monitor. To start, simply click “Create Portfolio” at the top and you can easily add your selected stocks.
Accessing Premium Features
It is essential to note that Stock Grader is a premium feature exclusive to paid subscribers. To access it, a subscription to one of my services, including the flagship Growth Investor, is required.
If you’re not yet a member of Growth Investor, click here to subscribe and unlock immediate access to Stock Grader.
If you are already a Growth Investor subscriber, click here to log in to the members-only website.
Sincerely,
Louis Navellier
Editor, Market 360
Disclosure: As of the date of this email, the Editor, either directly or indirectly, holds shares in the securities discussed in this commentary, particularly NVIDIA Corporation (NVDA).
