2021年9月1日星期三

A Perfect Stock List - September 2021

If you're looking for a safer way to trade stocks, you should always return to the fundamentals. The best way to do this is by trading what is known as the F&Z Score. These are perfect companies in today's economy according to fundamental analysis. I want to ensure that the numbers tell a story of positive growth. Remember, stocks with solid F and Z scores tell us RIGHT NOW what is working in the U.S. economy.
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A Perfect Stock List - September 2021

Dear Reader,

I am hoping that I don't need to travel for at least 60 days. Is that going to happen? Hopefully. I'd like for 60 days to get into a series of new habits. When I write, when I research, and how I structure my trades.

But one habit that remains in place is my monthly evaluation of stocks with remarkable balance sheets. Yes, that brings us to our monthly F&Z score recap. These are perfect companies in today's economy according to fundamental analysis.

To get this list, we use these three metrics:

  • The Piotroski F-score
  • The Altman Z-Score.
  • A valuation rank

Right now, market momentum is positive. I am so thrilled. As you know, I've been screaming at the son over the lack of capital flowing into the market over the last few months. But now, more than 57% of stocks are trading above their 50-day SMA.

And it's starting to look like its full-steam ahead. With these stocks, you'll want to sell cash-secured puts for entry, explore vertical call spreads for higher-probability gains, or simply buy and hold them so long as they remain on this list.

Let's Talk About the Numbers

I want to ensure that the numbers tell a story of positive growth.

The F-score is a NINE-POINT system that rewards each company for meeting a certain criterion on its balance sheet. For example, if the company meets all nine criteria, it has an F-score of 9.

The Z-score is a weighted average of five metrics to determine whether a company might go out of business. For example, if a company falls below 2.5, it has a risky balance sheet – typically due to large debt loads or weak cash flow.

I hate surprises, so I prefer to target companies with a Z-score of 3 or higher.

Remember, stocks with solid F and Z scores tell us RIGHT NOW what is working in the U.S. economy.

You cannot fake the performance when using forensic analysis.

So, let's look at the seven perfect companies this month.

 
 
Remember, these are the companies that are performing well on the balance sheet - IN THIS ECONOMY.

No one can fake this sort of performance.

We'll look for ways to trade this list next week.

Enjoy your day,

Garrett Baldwin
Chief Analyst, American Markets


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