I am taking a slightly different approach to summing up the top stock picks for this week.
For starters, I will begin to include the criteria I’ve used to feed stocks through my program. For this week, the criteria is:
- Stock listed on Nasdaq / NYSE = True
- Daily Volume and Avg Volume > 150,000
- Intraday price < $250
- Has revenue = True
- Positive EPS = True & Growing YoY
- Positive EBITDA = True
My stock screener has generated the following 38 top stock picks out of 1451 stocks screened. These 38 top stock picks are filtered based on:
- Stocks with a 20% or greater potential return vs. the target price, irrespective of current price vs. stdev
- Stocks with at least 1 full year of trading history
- 10 stocks were removed intentionally due to high levels of risk (higher than the remaining 38 stocks), despite meeting the criteria above
I run my algorithm the same way, but I now short-list the stocks primarily by the % upside potential return to the target price, whereas before I was showing all returns for any stock trading at the lower stdev bounds. I’ve pivoted to this approach to show only stocks with the best potential returns.
I adjust the target price accordingly based on whether the stock is in an Up trend or Down trend. The target becomes more of a stretch if the stock is in an Up trend.
The data set now shows the % of time the stock has spent above the MEAN / Trend Line over the past year. I’ve removed some other columns that I felt make the table “too busy” and the data was not value-add.
There are 7 stocks that have favorable risk/reward ratio and have historically traded at least 50% of the time above the MEAN / Trendline.
DAKT – Daktronics, Inc.
COCO – The Vita Coco Company, Inc.
CXM – Sprinklr, Inc.
DBI – Designer Brands Inc.
CNK – Cinemark Holdings, Inc.
STVN – Stevanato Group S.p.A.
LQDT – Liquidity Services, Inc.
