Every day our POWR Ratings system scans the universe of stocks with equal eye to small caps as well as the largest shares, explains Steve Reitmeister, an advisor for over 40 years, the editor of Reitmeister Total Return — and a participant in The Interactive MoneyShow Virtual Expo from May 11-13. Register for free here.
This often leads to unearthing hidden gems with stellar fundamentals, but with lagging share price. This creates a glorious opportunity for us to step in and have outsized odds of outperformance.
For our POWR Ratings, we analyze 118 different factors for every stock, each of them contributing a little to the stock’s likelihood of outperformance.
The proprietary model puts the odds of investing success in your favor. That’s because our “A” rated Strong Buy stocks would have generated a compounded annual return of +30.72%. The returns of the Strong Buys are 4 times the 7.13% annual return for the S&P 500 since 1999.
Just as impressive is how we help investors avoid the worst stocks. That’s because the “F” rated Strong Sells would have tumbled an average of -19.41% a year over the same time frame.
Shutterstock (SSTK) is currently one of the most highly rated stocks on the POWR Ratings. And just had another impressive beat and raise quarter. And yet shares have tumbled over 10% since. Why? Because these are the games computer traders play.
They see an easily manipulated small to mid cap stock that they can reliably beat down with selling pressure to make money on the short side of the ledger. And then they can buy these shares on the cheap as other investors run away.
Yes, I know that sounds like conspiracy nonsense. But have seen it time and time again. And have talked to many active day traders who know for certain these are the games the big boys play.
So I am going to take advantage of this dip to get on board a juggernaut internet play that will see even greater growth as the economy comes back to life and advertising industry sees spending increases.
That is why analysts are pounding the table this morning with higher earnings estimates and target prices of $105 to $110.
