We have been periodically checking in on the top ranked stocks appearing in the new ranking system on InvestorsObserver. The new ranking system, The Stock Score Report, combines both technical and fundamental data when ranking stocks in the overall universe.
We like the ranking system primarily because of the fact that it does consider both technical and fundamental research in its ranking system. Most investors tend to rely on one or the other forms of analysis when considering whether a stock is a good buy or not.
Technical analysis examines a stock’s recent trading pattern, and attempts to predict which direction the stock is headed from a technical standpoint. Fundamental analysis, on the other hand, looks at the actual numbers. It considers overall economic conditions, as well as the company’s financial condition when determining the outlook for a stock.
There is nothing wrong with either approach to investing, and while most investors tend to rely on one or the other approach to research, there are advantages to both, which is why we really like seeing a screening tool that takes both into consideration.
Stocks with high technical scores have been trading strong, and it shows that Wall Street believes in the strength of the underlying security. Stocks with high fundamental scores demonstrate that economic conditions are good for the company and sector moving forward, which should support additional upside in the stock.
The following five stocks are strong both technically and fundamentally, and as such are ranked incredibly high in the Stock Score Report.