1Lun·

I came up with a crazy idea and I wanted to share my work with you. I decided to organize my watchlist according to different criteria. The best stock gets 10 points and the worst gets 1 point. It is important to mention that this is a snapshot and can change at any time.

The criteria were:


- Market value (the higher the better as with the s&p)

- 52W low difference

- 52W high difference (at least 15 percent 52 w of high)

- Wallstreet rating ( strong buy )

- Price Target Difference

- Z score

- Sales forecast for the next 5 years

- EPS forecast for the next 5 years

- Forward PE ( the lower the better )

- ROIC ( the higher the better)

- Gross profit margin ( the higher the better)

- Net margin ( the higher the better)

-FCF margin ( the higher the better)

- Profit per employee ( the higher the better)

- PEG Ratio ( the lower the better)

- Beta (the lower the better)

- FCF Yield (the higher the better)

- Earning Yield ( the higher the better)

- Current ratio ( the higher the better)

-Short ratio ( the lower the better)

- Quick ratio ( the higher the better)

- Debit / EBITDA (the lower the better)


Place 1- $LRCX

2nd place $SNPS (-0,94 %)

3rd place 3- $NOVO B (-2,39 %)

Place 4- $MCHP (-3,32 %)

5th place $REGN (-0,45 %)

Place 6- $MCK (+0,98 %)


ATTENTION: many industries cannot be compared directly, which is why, for example, gastronomy providers perform relatively poorly in such a test or the transportation sector such as ODFL. Here you can only compare shares from the same sector.


I would be very interested to know what you think of my approach? What can be done better here to achieve even more accurate results? Which criteria would you use and which not?

I am very curious about your feedback.


Thank you very much in advance 😘

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56 Comentarios

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Now I know why I only invest in ETFs (and crypto) 😅.

@Simpson How often do you do that with your shares?
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Excel would have been so much easier :)
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Basically a great thing! But are you really doing it on paper?
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Synopsis and Novo Norddisk have also recently made it from the WL into my portfolio
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First of all, a great thing and, as you rightly mention, not all sectors can be compared with each other. An evaluation at sector level might therefore be more useful. But great respect for your work!

One point of criticism! Link your top 6 in the middle. The abbreviations are not my thing. I can guess which value is where, but I don't really know. Which value is number 4?! $MCHP. Quickly helped myself. I wouldn't have thought of it!
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Reminds me of my factors table. I would always run the results in the sample portfolio so that you can also see how these values develop over time.
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Have you done a backtest with your criteria? Are they any good at all? And are they all equally weighted or are some even superfluous?
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I think your approach is well suited to achieving above-average results. You try to evaluate stocks from a large data field based on quality criteria. The stock finder would certainly have done a lot of the work for you 😅
Since Synopsys and Novo are at the top, you can almost save yourself a backtest.
I see many of my stocks in the list, glad to see it! 🚀
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Very nice approach.
Personally, it is always important to me that the EbiT margin can be increased.
An increase in free cash flow is also desirable.
For me, profit and sales growth have already become mandatory.
Even if many say that the stock market is a thing where only the future counts. Nevertheless, I also look at the past, because a company that has been able to consistently increase sales in the past has what it takes to continue to do so
This is where you have usually built up a certain BURGGRABEN.

Otherwise, Traderfox has a similar approach.
They also award up to 15 points in the quality and growth check.

I think you're great 😘
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Strange hints. I would never buy some of the top 5 stocks. $NOVO B and $MSK are worth buying in 2-3 weeks (monthly close) wait and see
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