In the 20 months since the market turned around in 2022, the S&P 500 has logged a scorching 49% gain.
That’s roughly three times the index’s average return of 10.47%, based on more than 30 years of historical data.
Mega-cap tech stocks have done even better, leading the charge since 2023 and earning the nickname “Magnificent Seven.”
Yet even though stocks are still steadily setting all-time highs, the momentum seems to be slowing.
We saw serious resistance in the broad S&P 500 at the 5,200-point level, for example, which the index spent the better part of April breaking through.
In layman’s terms, the message is simple: The “easy money” that came with the stock market’s early recovery has already been made for the most part.
Moving forward, smart investors will need to be more selective in order to maximize their returns.
That means sticking to investing within a few key mega trends.
And then only buying the top stocks within each trend.
Fortunately, there’s a way you can do all that within about five seconds…
Your Source for Instant Stock Power Ratings
I designed Green Zone Power Ratings with only one goal in mind:
Provide Main Street investors with a powerful trading system they’d actually want to use.
Let’s face it: There are thousands — if not millions — of analytical investing tools out there for you to choose from. But if you’re like most investors, you’re probably not using any of them.
And it’s easy to see why…
Many are way too complicated, with millions of options and a manual that reads like something out of an electrician’s school.
Most of these systems were designed “by experts, for experts.” So they don’t really give a second thought to making their insights more accessible.
So you could spend hours upon hours learning how to read stock charts and “Ichimoku Clouds” (yes, that’s a real strategy)…
Or smart investors could spend about 30 seconds learning everything you need to know about a stock with Green Zone Power Ratings.
My system is a unique hybrid that combines fundamental and technical analysis. Fundamental and technical factors drive returns, and they always have.
The six factors I included in my Green Zone Power Ratings system are…
- Momentum: Stocks trending higher, faster than their peers, tend to outperform stocks that are moving higher at a slower rate (or trending down).
- Size: Smaller stocks tend to outperform larger stocks.
- Volatility: Low-volatility stocks tend to outperform high-volatility stocks.
- Value: Stocks that trade at low valuations tend to outperform stocks that trade for high valuations.
- Quality: Companies that exhibit certain “quality” characteristics — such as healthy balance sheets and persistently strong profit margins — tend to outperform the stocks of lesser-quality companies.
- Growth: Companies that are growing revenues, earnings and cash flow at higher rates tend to outperform the stocks of slower growing companies.
All told, my Green Zone Power Ratings system considers 75 individual metrics, each of which falls into one of these six “factors.”
Each of the six factors is tallied to give us the stock’s overall Green Zone Power Rating on a scale of 0 to 100:
- Strong Bullish (81 to 100): Expected to outperform the market by 3X.
- Bullish (61 to 80): Expected to outperform the market by 2X.
- Neutral (41 to 60): Expected to perform in line with the market.
- Bearish (21 to 40): Expected to underperform the market.
- High-Risk (0 to 20): Expected to significantly underperform the market.
For example, here’s the Green Zone Power Ratings for Walmart Inc. (NYSE: WMT):
WMT’s Green Zone Power Ratings in June 2024.
As you can see, WMT’s score is close to being “Strong Bullish.” It should outperform the market over the next 12 months.
Why?
As you can see, it’s got strong Momentum, with Volatility working in its favor. It also has high marks on both Quality and Growth. But it’s weighed down by its massive size (limiting growth potential) and a weaker score for Value.
This is the kind of information that could’ve otherwise taken hours to parse out from press releases, financial documents and analyst writeups.
Instead all you have to do is type in a stock’s ticker in the search bar HERE, and you get it all in seconds.
Will Green Zone Power Ratings instantly make you an expert on WMT stock? Of course not.
But it will guide you to the key issues that might be holding a stock back or give you the green light on a stock that’s ready to take off.
Things get especially exciting when you find the rare stock with a perfect 100 out of 100 on Green Zone Power Ratings…
I’ll share a little more on that next week…
To good profits,
Adam O’Dell
Chief Investment Strategist, Money & Markets