WHY USE ClariStock?
4 Advantages of using ClariStock:
- Use 20% of time to get 80% of stock information
- Analyze ANY US stock in just 1 MINUTE
- Use computer to analyze stock without any human bias and emotion
- FREE to use
When you hear a stock name, just enter the stock ticker in ClariStock and enables you to analyze this stock in just 1 minute.
Pick Quality Growth Stock to Increase Potential Return
Invest in high-quality growth stock can maximize your potential return. But the problem is how to quantify high quality? So ClariStock can help you.
First, input the stock ticker in the search bar. ClariStock algorithm will quantify this stock and display the most valuable information. Total mark above 70 means the stock is a quality growth stock with high growth potential and strong fundamental.
7 Key Criteria is Enough and Total Mark above 70
Full mark of each criterion is 100. Remember, higher mark is preferred! If the mark exceeds 80, meaning the stock has done excellently in this area. Search more stocks with total mark above 70, saying they are quality growth stocks (With high growth potentials and strong fundamentals).
- Total mark: It is the most important criteria. Higher mark means the stock may have a high growth potential, good profitability, strong financial health and sound earnings record in the past.
- Growth Potential: Higher mark indicates the stock may have a high growth potential, implying strong revenue and profit potential, which stock price may have a high chance to grow!
- Profitability: Higher mark suggests the stock may have a high profitability, including high gross profit margin, net profit margin and ROE (Warren Buffett focuses a lot on ROE), implying strong pricing and earnings power.
- Financial Strength: Higher mark means the stock may have a good financial health, which has a strong balance sheet and cash flow.
- Q1 2019 Result: High mark indicates this stock delivered an excellent result in the previous quarter, including satisfactory revenue and profit growth. Strong historical result can prove that the growth can be sustainable.
- Q4 2018 Result: High mark indicates this stock delivered an excellent result in the quarter before the previous quarter, including strong revenue and profit growth. Robust historical result can prove that the growth can be sustainable.
- Result 2018: High mark indicates this stock delivered an excellent result in an earlier year, including good revenue and profit growth. Solid historical result can prove that the growth can be sustainable.
Future growth estimate of a stock is provided. Higher revenue, EPS growth and ROE are preferred.
Estimated P/E is preferred lower. However, you should not only look at estimated P/E alone without comparing to estimated EPS growth. Just like Peter Lynch did, normally, the stock may be undervalued when estimated earnings growth exceeds the estimated P/E. The stock may be expensive when estimated earnings growth is lower than estimated P/E. You should also consider its moat when value a stock.
For example, a stock has estimated 2017 P/E of 25 times, however, the stock is estimated to deliver EPS growth of 30% in 2017, this stock may not be treated as expensive.
Amazon (AMZN), Facebook (FB) and Alibaba (BABA) are very good examples to illustrate this relationship, P/E of them are always “expensive”, but when you compare them to their estimated EPS growth respectively, they do not seem expensive.
- Market Sentiment: Be careful, high mark indicates the market is pessimistic about the stock, meaning the share price is relatively cheap compared to historical share price movement, suggesting a good buying opportunity. Normally, pessimism refers the stock price has experienced a correction recently and is at low range and vice versa. If a stock has high total mark and growth potential (>70), buy at low mark of market sentiment is acceptable.
- Relative valuation: High mark implies the valuation of this stock is quite cheap when compared with its growth potential, suggesting a good buying opportunity. If a stock has high total mark and growth potential (>70), buy at low mark of relative valuation is acceptable.
- Being a value stock: High mark means this stock can fulfill the criteria that a value investor (Warren Buffett) wants, high ROE, strong pricing power, good financial health, consistent earnings history, etc.
- Absolute valuation: Be careful! High mark suggests the valuation of this stock is quite cheap. Again you should also consider its total mark and growth potential instead of just considering absolute valuation alone.
Where can I Find Quality Growth Stocks
Monthly Recommendation List
A stock recommendation list will be provided and updated monthly. After quantifying stocks by ClariStock algorithm, the list consists of top 30 stocks in terms of total mark. They are quality growth stocks and may give you a high return in future. We strongly encourage “Don’t Put All your Eggs in One Basket,” so we recommend you to establish an equity portfolio for investing in at least 10 quality growth stocks. We also encourage you to do your own qualitative analysis on their moats. Screen out the stocks that do not have wide moats.
- ClariStock performs quantitative fundamental analysis for you and you should focus more on stocks which the mark is above 70
- Perform your own qualitative analysis to analyze the moat and competitive advantage
- Diversify, build a portfolio containing at least 10 stocks
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