Here are November’s Perfect Stocks

November's Perfect Stocks

Every month, I discuss market momentum and the strongest stocks to start the month. I focus on two financial metrics to identify solid companies with extremely strong balance sheets and low probabilities of default. I also look for solid valuation ranks to ensure that November’s perfect stocks are ideal ways to trade this month. 

This is the ultimate Do-It-Yourself lesson.

  • The Piotroski F-score
  • The Altman Z-score
  • A valuation rank

I like to trade covered calls and cash-secured puts on these stocks. But first…

The Numbers to Discover November’s Perfect Stocks

We want a story of positive financial growth and low debt exposure – and the F-score tells it. 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 weighted average of five metrics to determine whether a company might go out of business. For example, if a company falls below 2.5, it has a 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. 

Remember, stocks with solid F and Z scores tell us RIGHT NOW what is working in the U.S. economy. You can’t fake performance when using forensic analysis. 

November’s Perfect Stocks:

Stock NameF-ScoreZ-Score
BHP Group (NYSE:BHP)93.61
SEI Investments (NASDAQ:SEIC)917.82
Quest Diagnostics (NYSE:DGX)93.89
Evertec (NYSE:EVTC)94.68
Smith & Wesson Brands (NASDAQ:SWBI)99.71
SIGA Technologies (NASDAQ:SIGA)921.81
Natural Alternatives (NASDAQ:NAII)94.41
Hologic Inc. (NASDAQ:HOLX)94.13

We’ll talk about how to trade these stocks and a few examples starting next week. You can’t fake performance. You’ll love these strategies.

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.

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