Over the last couple of weeks we have been paying close attention to a new stock scoring system put in place by stock and options adviser InvestorsObserver.
InvestorsObserver has a new Stock Score Report set up that ranks stocks based on a variety of fundamental and technical data points.
Most investors, myself included, tend to fall into one of two camps. Investors tend to either trade and invest based on a stock’s technical trends, or on the underlying fundamentals of a company. Both are acceptable approaches, but most traders tend to rely on one or the other.
Personally, I prefer to take the technical approach. My personal belief is that you can better predict a stock’s future potential based on real-time technical trends versus lagging fundamental data. That is my personal opinion, but I also understand there is a lot of merit to understanding a company’s fundamentals, and basing long-term investments on that data.
The fact thatInvestorsObserver is combining both technical and fundamental data in its stock rankings combines the best of both worlds, and is a good approach to take. It allows investors like myself, who rely on technical analysis, to quick see how the fundamentals rank versus a stock’s peers.
The combination of a stock’s technical and fundamental scores yields a stock’s overall ranking, so obviously the higher the overall ranking, the better the stock scores on both a technical and fundamental view.
Let’s take a closer look at five stocks that have high rankings, and see how they are performing. As always, do you own research, but a high ranking on the Stock Score Report suggests that each of these stocks are worth a closer look.