Stock picking isn’t easy. And since the market is always changing, you need to always be on the lookout for new ideas. But more importantly…
You need to be on the lookout for new ways to lookout for new ideas! That’s why I love free online investing tools like these FinViz stock screens. Stock screeners let you splice and dice data in all kinds of peculiar permutations.
So let me show you how I found these under-valued stock ideas that are starting to shine.
Screening for Under-Valued Upward Revisions:
A lot of my stock screens revolve around trying to find under-valued companies. But lately, my usual stock screens aren’t producing much in the way of success. So I’m trying to spice things up and be a bit more proactive about finding stocks that are moving up.
But how do you know which stocks will keep moving up?
One of the most reliable indicators, according to the book How to Make Money in Stocks, is increasing EPS. The book makes a compelling case for why ongoing increasing EPS is the main driver for higher stock prices.
So in this screen, I tried to isolate under-valued and fundamentally sound ideas. Then I looked for companies that have recently announced an upward revision to their EPS guidance. The idea here is not only will these businesses will continue to generate strong earnings but they’re also under-valued relative to their earnings growth. So what are these stocks?
Take a look at the screenshot below from the PPT stock screener:
As you can see, the list of stocks isn’t huge. But it’s a good jumping off point for further research. GME in particular jumps out at me as one that might be interesting. By the way…
Just for your context, the fundamental score in the above stock screen filters out companies that are expensive based on price to sales, price to cash-flow, price to book and a number of other fundamental metrics. The fair price target is calculated using Eddy Elfenbein’s simple valuation measure.
As you can see, this is a quick and dirty approach, but it helps speed up the stock picking research process and could lead to new
And feel free to let me know in