It’s been a little up and down, but markets have been buzzing since the election. Despite a slight dip last week, the S&P 500 is up more than 3% since November 5.
And as the bull market broadens, certain stocks are going to reward their investors handsomely.
That’s where Green Zone Power Ratings comes in!
Chief Investment Strategist Adam O’Dell’s system helps everyone on the Money & Markets team find the best stocks in all corners of the market.
If a stock is on our shortlist, we first find out how it performs in Green Zone Power Ratings.
Adam began crafting his system long before joining our team as chief investment strategist. He spent years perfecting his algorithms that analyze thousands of stocks.
All of that hard work has created stock analysis that’s easy to understand.
The system does all the math for us, but Green Zone Power Ratings boils down to six essential factors:
- Momentum.
- Size.
- Volatility.
- Value.
- Quality.
- Growth.
Let’s put it into practice.
What’s Behind Green Zone Power Ratings
Adam’s Green Zone Power Ratings system is easy to use. Here’s what it says currently about Apple Inc. (Nasdaq: AAPL) stock as an example.
AAPL’s Green Zone Power Ratings in November 2024.
Each stock earns an overall rating that falls into one of five categories:
- Strong Bullish (81-100).
- Bullish (61-80).
- Neutral (41-60).
- Bearish (21-40).
- High-Risk (0-20).
You can see here that Apple stock currently rates a “Bearish” 40 out of 100. That means the stock is expected to lag the broader market over the next 12 months.
AAPL’s ratings have been in slow decline as investors look for better opportunities in the broader bull market. Back in September, it rated a “Neutral” 49 out of 100.
Looking at its individual factors, AAPL rates well on Momentum (72), but other factors are a drag on the stock right now. While it has gained a solid 20% over the last year, that’s lagging the broader S&P 500’s 30% since last November.
Apple’s massive size and high valuations are red flags. Apple’s market cap is on its way to $3.5 trillion, which means it’s going to take a lot of capital to move the needle and grow the stock further.
I dug deeper into the stock there to highlight why AAPL is slated to track the market from here, but we’ve made it easy to analyze a stock at a glance.
You can see a stock’s “action to take” depending on where it lands on the spectrum. To learn more about these rankings and what each action means, check out the table below:
Green Zone Power Ratings is at the core of what we do here at Money & Markets. And we’ll continue highlighting its analysis here in Money & Markets Daily.
If you want to give it a spin yourself, we’ve got you covered…
Until next time,
Chad Stone
Managing Editor, Money & Markets