Weekly Top Picks: These stocks scored 10 on 10 on Stock Reports Plus

To help you make best investment decisions, we have screened out all companies that have been awarded the highest score by Stock Reports Plus and clubbed it together with a ‘Strong Buy/Buy’ analysts’ recommendation as per Institutional Brokers’ Estimate System (IBES).

Our weekly top picks can provide you actionable insights for companies with strong fundamentals.

Stock Reports Plus, powered by Refinitiv, undertakes detailed company analysis for 4,000+ listed stocks.

In addition to detailed company analysis, the report also collates analysts’ forecasts and trend analysis for each component.

An average score in Stock Reports Plus is calculated by undertaking quantitative analysis of five key investment tools earnings, fundamentals, relative valuation, risk and price momentum.

Earnings rating is calculated based on three factors – earnings surprises, estimate revisions and recommendation changes.

Comparing company’s actual earnings to the mean expectation of analysts results in a difference which is referred to as ‘Positive’ or ‘Negative Surprise’.

The report takes into account surprises from the past 4 quarters.

Estimate revisions are the number of up and down revisions in earnings per share of the company by the analysts and the average percentage change of those revisions.

Profitability, debt, earnings quality and dividend trends are evaluated under the fundamentals component in the report. Each sub-component is given equal weightage to be ranked on a scale of 1 to 10.

Relative valuation has three components – price to sales (50% weight), trailing P/E (25% weight) and forward P/E (25% weight).

These metrics are evaluated against the overall market, index and company’s own historic 5-year averages.

Risk score by evaluating a series of long term (5-year) and short term (90-day) stock performance measures including volatility, magnitude of returns, beta and correlation.

Each factor is equally weighted. A risk rating of 10 is awarded to least risky stocks.

The weekly report calculates price momentum rating based on a combination of two technical performance factors: relative strength (70% weight) and seasonality (30% weight).

While RSI for 1 month, 3 months and 6 months is taken into account to calculate the overall component rating, seasonality takes into account average monthly price performance for the current month and next 2 months for the company and the industry, over the past 10 years.

Each component is assigned a score on a scale of 1-10 (10 being awarded to the most favorable).

Thereafter, an average score indicating the overall outlook of the stock is calculated by taking a simple average of the above-mentioned component ratings distributed normally.

A score of 8 to 10 is considered positive, 4 to 7 is neutral and 1 to 3 is given a negative outlook.

Stocks with an average score of 10 with no recommendation from analysts are not included in this list. The scores are reevaluated every week whereas all relevant data points in the report are updated daily.

Here’s a list of companies that have scored an average score of 10 as of January 8, 2023.

The list has been sorted on market capitalization.

Companies with 10/10 average score and ‘Strong Buy/Buy’ recommendations from analysts