These are Perfect Stocks, in My Opinion

The Perfect Stock

Now, I’m not perfect. I can barely pronounce half the brands that are outside of the United States. I also have a knack for picking the worst sports franchises as a fan. But what I can do is teach you how to discover perfection in the stock market.

I use three metrics to determine the best and safest stocks in the market once a month. And each month, I bring this portfolio to you for free. I know for a fact there are other financial research publications charging people for this. I find that to be the worst form of informational arbitrage.

Because YOU can find each perfect stock yourself. All you have to know is what to look for each month.

The first two are the Piotroski F-score and the Altman Z Score. Then, I layer Perfect Score companies with a valuation rank to ensure that they provide optimal upside over the next 30 to 60 days.

Let’s Talk About the Perfect Stock Numbers

I like good clean math. No hijinks. No second-guessing.

The F-score is a NINE-POINT system that rewards each company for meeting a certain criterion on its balance sheet. If the company meets all nine criteria, it has an F score of 9.

The Z score is a tad more complex. This is a weighted average of five metrics to determine whether a company might go out of business. If a company falls below 2.5, it has a very risky balance sheet – typically due to large debt loads or weak cash flow.

I prefer to target companies with a Z score of 3 or higher. That figure allows me to be on the safe side and avoid any surprises. Why are these numbers important? Because it tells us RIGHT NOW what is working in the U.S. economy.

The strongest trends are found on this list of perfect stocks. You cannot fake the performance when you engage in this level of forensic analysis. And – if in a month either the F score falls to eight or lower, or the Z score drops under 3, I drop it off this list.

So, let’s take a look at the seven perfect companies this month.

StockF ScoreZ Score
AutoNation (NYSE:AN)94.26
Brunswick Corp. (NYSE:BC)94.17
Quest Diagnostics (NYSE:DGX)93.88
Lennar Corp. (NYSE:LEN)94.22
Thermo Fisher Scientific (NYSE:TMO)94.82
Tractor Supply (NASDAQ:TSCO)95.49
Ternium S.A. (NYSE:TX)93.44

What can we take away from this list?

Used cars are hot. Boat sales are picking up. Blood testing remains a critical business. Homebuilding is still hot. And rural stores continue to thrive as more Americans grow their own food and spread out on more acreage. Finally, Ternium is a terrific steel company that looks great.

Garrett Baldwin
Garrett Baldwin
Garrett Baldwin joined Godesburg Financial Publishing as Chief U.S. Markets Analyst in early 2021. A Johns Hopkins-trained Economist, he’s worked with hedge funds, venture capital firms, angel investors, and economic advisors to the U.S. government. Baldwin specializes in market anomalies and alternative investments. He’s written extensively on momentum, value, insider buying, and other unique strategies that provide investors that elusive edge.
Garrett Baldwin
Garrett Baldwin
Garrett Baldwin joined Godesburg Financial Publishing as Chief U.S. Markets Analyst in early 2021. A Johns Hopkins-trained Economist, he’s worked with hedge funds, venture capital firms, angel investors, and economic advisors to the U.S. government. Baldwin specializes in market anomalies and alternative investments. He’s written extensively on momentum, value, insider buying, and other unique strategies that provide investors that elusive edge.

Related Articles

October 2022 Perfect Stocks

October 2022 Perfect Stocks

Market momentum is Red. This market is still stagnating and bouncing around. But we’ve seen some stronger moves in recent days in places that most

Read More »
the fed

Demand Destruction

Momentum is Red. Markets remain under pressure after Quad Witching. Markets remain very choppy after a day of wild swings and traders taking profits off

Read More »
problem fed

The Problem With The Fed

Momentum is Red. The markets got a small bid today, but momentum turned red on Tuesday. Don’t be shocked if we see more volatility heading

Read More »
the fed

Demand Destruction

Momentum is Red. Markets remain under pressure after Quad Witching. Markets remain very choppy after a day of wild swings and traders taking profits off

Read More »