Investing Lists: Actionable Stock Ideas

Actionable investing lists allow you to find the types of stocks that align best with your investment strategy. There are five different groups. Scroll down to find the one that's best for you. 

Value Stocks

Value Stocks
Find the top scoring value stocks using a value composite model. A value composite seeks to find cheap stocks using a combination of value metrics. Since all value metrics have both strengths and weaknesses, research has shown that using a combination of them can both enhance returns and limit risk. Our value composite combines the P/E Ratio, Price/Sales, Price/Cash Flow, Price/Book, EV/EBITDA and shareholder yield. Go to our interactive experience to learn more about value stocks. 

Find the full list here.

Small Cap Value Stocks
Small-cap value has been one of the best performing investing styles over time. The combination of buying stocks that are cheap and small that are underfollowed has been a powerful one for long-term investors. Below are the cheapest small-cap value stocks a value composite, which combines the P/E Ratio, Price/Sales, Price/Cash Flow, Price/Book, EV/EBITDA and shareholder yield. Go to our interactive experience to learn more about small cap value stocks.

Find the full list here.

Growth & Momentum Stocks

Growth At A Reasonable Price Stocks (GARP)
Find the top scoring Growth-at-a-Reasonable Price stocks using a model based on Peter Lynch’s GARP investing approach. The model looks at the price/earnings/growth ratio, or 'PEG'. The PEG divides a stock's price/earnings ratio by its historic growth rate to find growth stocks selling on the cheap. Along with the PEG, fundamental variables like the debt/equity ratio, earnings per share growth rate, inventory/sales ratio, and free cash flow are taken into account when scoring and ranking stocks. Go to our interactive experience to learn more about growth at a reasonable price (GARP) stocks.

Find the full list here.

Momentum Stocks
Price momentum measures how much a stock has gone up relative to its peers and fundamental momentum measures how fast its underlying business has been growing using multiple fundamental factors. To measure price momentum, we use the 12-1 month return, which is a stock’s return in the past 12 months, excluding the most recent month. The most recent month is excluded because short-term momentum often tends to reverse, so excluding it provides a better momentum signal. Go to our interactive experience to learn more about momentum stocks.

Find the full list here.

Quality Stocks

High Quality Stocks
Find the top scoring high quality stocks using a quality composite score. A quality composite looks for solid businesses that produce consistent results, are very profitable, and generate high returns on their capital employed. The quality composite combines return on equity, return on total capital, gross margin, net margin, and sales and earnings consistency. Go to our interactive experience to learn more about high quality stocks.

Find the full list here.

Wide Moat Stocks
Wide moat stocks typically have significant competitive advantages that allow them to fight off competition and maintain high profitability and returns on capital. A moat can come in several forms. Some firms create moats through a superior brand. Others do it via pricing power that competitors can't match. Still others do it through operational advantages. The system used to identify moats is based on the criteria adapted from a strategy derived from how Warren Buffett analyzes stocks. It looks for firms with consistent growth in earnings over time and consistently high returns on equity and returns on total capital. Go to our interactive experience to learn more about wide moat stocks.

Find the full list here.

Low Volatility Stocks
Find the top scoring low volatility based on a volatility composite. It can seem counterintuitive to many investors, but stocks that are less volatile than their counterparts have historically produced comparable or better returns. This means that on a risk-adjusted basis, low volatility stocks have been superior investments. Low volatility can be measure in two ways. The first is the standard deviation, which measures the volatility of each stock on a standalone basis, and the second is beta, which measure’s a stock volatility and correlation relative to the overall market. The market has a beta of 1.0, so a stock with a beta below one is considered less volatile than the market and vice versa for a stock with a beta above 1.0. Go to our interactive experience to learn more about low volatility stocks.

Find the full list here.

Highest Overall

Factor Investing
Find the top scoring stocks based on a multi, combined-factor ranking. The combined factor score ranks all stocks using a combination of value, momentum, quality, and low volatility. The stocks with the highest scores and the greatest consistency across the factors will receive the best rankings. Go to our interactive experience to learn more about factor rated stocks.

Find the full list here.

Dividend Stocks

Shareholder Yield Stocks
Shareholder yield looks at all the ways that companies can return capital to their shareholders. It is the sum of a company's dividend yield, net buyback yield and debt paydown yield. Since it covers multiple methods that a firm can use to return capital to its shareholders, many consider shareholder yield to be a superior measure to dividend yield. Research has shown that stocks with high shareholder yields typically outperform the market over time. Go to our interactive experience to learn more about shareholder yield stocks.

Find the full list here.

All information has been provided by Validea.