Navellier Growth: your source for market-beating growth stocks

 

Sports and stock investing have always had a lot of things in common. In fact, there have been numerous articles and discussions that I have run across over the years that make the comparison between investing money and heading out to the baseball diamond. Both take dedication, practice (research), commitment and hard work to achieve the top levels of success. Both hold an enormous interest and fascination for the public. Both can trigger emotions and passion.

In recent years, another similarity between stocks and sports has developed. In the days of old, teams were put together by feel and by instinct. Scouts and coaches evaluated potential players. They spent days and even weeks slogging around the countryside trying to spot new talent to add to their roster and improve their chances of winning. Then along came a gentleman by the name of Billy Beane. Beane was the General Manager of the Oakland A’s who made use of statistics to evaluate not only each player but how well they fit the makeup of the team. Did they contribute or detract from the overall team? This had never been done before and baseball purists were aghast and proclaimed loudly it would never work. Then the A’s began to win. Because they used statistical and quantitative measures to evaluate each player abilities, how they fit with the team as well as their cost effectiveness they won with a payroll fall lower than most other successful major league clubs! The science of what became know as Sabermetrics, the use of quantitative measures to evaluate players was born. Today, Theo Epstein of the Boston Red Sox has used these techniques to build a powerhouse that is easily one of the best in baseball. Almost every Major League team now has a statistical staff to help select and manage their team.

It has spread to other sports as well. During NFL scouting season players are put through a series of tests, and these results are tabulated and analyzed for each player’s total abilities, not just one or two of their best assets. These players take the Cybex Test, which uses statistical measures to evaluate the strength and flexibility of their joints. Mathematics help determine how injury-prone a player might be prior to being signed to a team. A poor performance at the combine can dramatically alter a prospect’s chance of being a high draft pick. Just ask Troy Smith. A Heisman Trophy winner who choked during his team’s championship game, his draft stock fell quickly. Instead of being a high draft pick based on his college statistics, he fell to the third round of the NFL draft. The use of statistical measures helps teams find the right player at the right place for the most benefit to the team.

What exactly does this have to do with investing money?

Most stock research is very subjective with analysts offering estimates and opinions on the value of a particular stock. To me, that sounds exactly like the old-fashioned way scouts evaluating players. These folks put a lot of hard work and as much insight as possible into selecting players. Off course Tom Brady was drafted 199th, Joe Montana was a third round selection and the great Johnny Unitas was actually released by the Steelers before signing with Colts and moving into history. As investors we don’t want to overlook these kinds of superstars, nor do we want to put our money into a high draft pick that goes bust for subjective reason. That’s why I’m a “quant guy” on Wall Street. My team and I use statistical and quantitative measurements to find powerful growth stocks.  There’s no room for emotion. We look at what the numbers tell us.  Specifically we measure each stock across the range of 8 fundamental factors and select only those that score well across the board. We then further measure buying pressure in each stock so we aren’t putting our (or your) money into a project stock that needs years to develop. We only want those stocks that are ready to win right now!

To see our formula in action, simply log on to PortfolioGrader Pro, my free stock-rating tool, enter your favorite stocks and in seconds my database will crunch the numbers and output your stock(s) rating in an easy-to-interpret letter grade: A is a Strong Buy, B is a Buy, C is a Hold, D is a Sell and F is a Strong Sell.  It takes a great deal of statistical research to arrive at our ratings.  And now you can have access to our powerful data anytime, absolutely free. 

Log on now and draft your own winning portfolio today!

Recent Investing Info-to-Know Articles:
Getting Rich the Growth Way
PortfolioGrader Pro: Profit from the Earnings Run-Up!
Louis' exclusive investment videos
How to Invest: Guided by earnings
Investing: The Power of Growth

Visit the Investing Info-to-Know Archive
Visit our complete article archive