With market uncertainty on the rise particularly after the current market selloff, discovering high-quality shares has by no means been extra essential.
Traders want corporations with robust financials—companies that may not solely stand up to market turbulence however doubtlessly thrive in it.
Nevertheless, digging into monetary statements and assessing an organization’s strengths takes time and experience. That’s the place composite indicators just like the Piotroski Rating are available in.
Developed by accounting professor Joseph Piotroski, this extensively used metric evaluates 9 key monetary components over a number of years to gauge an organization’s total well being. A rating of 9 indicators a enterprise with robust fundamentals.
On this article, we’ll stroll you thru the way to use Investing.com’s preconfigured “Piotroski Picks” screener—a strong software designed to assist buyers shortly establish financially strong corporations. Let’s dive in.
How one can Entry the Piotroski Picks Screener
Your first step could be to click on on the “Inventory Screener” button on the high of the homepage.
From there, click on “Discover 20+ Screens” and navigate to the “High quality” part.
Choose the “Piotroski Picks” filter to routinely display for shares with robust fundamentals primarily based on the Piotroski Rating.
This one-click search identifies all shares with an ideal Piotroski Rating of 9, excluding micro-caps. Nevertheless, with 116 outcomes, additional refinement is required.
To slim the listing, we’ll apply two unique InvestingPro instruments: Honest Worth and Monetary Well being Rating. These metrics assist pinpoint shares with not simply robust fundamentals but additionally enticing valuations and monetary stability.
Let’s discover the way to use these filters successfully.
Refining the Record for Most Upside Potential
To slim the choice, we utilized two unique InvestingPro instruments:
Honest Worth: This metric aggregates a number of valuation fashions to find out a inventory’s true value, indicating whether or not it’s overvalued or undervalued and its potential upside/draw back.
Monetary Well being Rating: A ranking (as much as 5) primarily based on key monetary metrics to evaluate an organization’s monetary stability.
Last Screening Standards: Refining the Search to Uncover the Greatest Piotroski Picks
To pinpoint essentially the most promising alternatives, we utilized two extra filters:
Upside potential of no less than 15% primarily based on InvestingPro Honest Worth metrics.
Monetary Well being Rating above 2.5/5 for added stability.
These refinements narrowed the listing from 116 shares to only 20.
Under are some compelling shares from the complete listing of outcomes, together with the metrics displayed by our screener:
United Therapeutics Company (NASDAQ:) – 28% upside primarily based on InvestingPro Honest Worth. The corporate focuses on remedies for continual illnesses.
Huazhu Group Ltd (NASDAQ:) – 18.5% upside. Huazhu operates a number one resort chain in China.
Assurant (NYSE:) – 16.3% upside. Assurant offers safety companies for houses and automobiles.
For those who verify the listing within the picture above, some shares provide even larger potential—9 have over 30% upside, with two projected to surge greater than 40% primarily based on valuation fashions.
With excellent Piotroski scores, robust monetary well being, and vital upside potential, these shares might present a wise strategy to navigate market dangers with out sacrificing returns.
Trying to achieve entry to the complete listing of shares?
InvestingPro members can entry this personalized display instantly by means of this hyperlink.
Alternatives Exist in Any Market Surroundings
Whether or not markets are rising or falling, alternatives all the time exist for buyers who know the place to look. Bull markets make it simpler to generate beneficial properties, however the fitting instruments like Investing.com’s screener will help uncover robust picks even in downturns.
This screening technique is only one instance. Investing.com’s screener gives over 50 preconfigured searches (some unique to InvestingPro members).
Last Ideas
For these aiming to outperform the market, leveraging top-tier screening instruments—Piotroski Rating, Honest Worth, and Monetary Well being metrics—can present an important edge.
With some shares providing as much as 46% upside potential, these picks might be value a more in-depth look.
You may entry the screener utilizing this hyperlink.
Try the video beneath for an in depth rationalization of the way to use the screener:
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Disclaimer: This text is written for informational functions solely. It’s not supposed to encourage the acquisition of belongings in any means, nor does it represent a solicitation, provide, suggestion or suggestion to take a position. I wish to remind you that each one belongings are evaluated from a number of views and are extremely dangerous, so any funding resolution and the related danger belong to the investor. We additionally don’t present any funding advisory companies.
