This Advanced Stock Picking Tool Uncovers Tomorrow’s Profits

Editor’s note: “This Advanced Stock Picking Tool Uncovers Tomorrow’s Profits” was previously published in December 2024. It has since been updated to include the most relevant information available.

“Americans Cut Spending at Most Drastic Level in Four Years”…

“Stocks Bounce Back, But Head for Down Week, Month”…

“Homebuyers in U.S. Canceled Contracts at Record Rate for January”…

“Bitcoin Down 25% From All-Time High as Crypto Rout Worsens”…

No matter where you look, it’s clear that Americans are feeling the pain. We’re living through turbulent times. And for investors, that volatility is on full display in the stock market.

But what if I told you there was a better way to invest, avoiding the rollercoaster while still achieving enormous returns? 

That is, in response to recent market volatility, my team and I have turned to data and analytics to create a smart stock-picking model that only invests in the best stocks at the best times, maximizing upside potential while mitigating downside risk.

This screener analyzes thousands of stocks each month to find those best positioned to rise over the next 30 days. I’m talking stocks with a strong fundamental, technical, and sentimental basis. 

We’ve dubbed this advanced tool Auspex – in recognition of the ancient Roman officials who interpreted omens to guide their decisions. 

As I mentioned, each month, Auspex runs a comprehensive scan of the market, examining many thousands of data points to find the few stocks that are strong across the board. 

But what exactly does that entail? 

Today, we’ll start by reviewing the fundamental aspect of Auspex’s stock picking.

There are a lot of fundamental factors to consider. And that means there are a lot of ways for a stock to be fundamentally strong. 

Trained to Seek Only the Best Fundamental Setups

In our experience, three things matter most when it comes to stock fundamentals: sales, earnings, and profit margins.

Are sales rising? What about earnings? Is the trend of that growth picking up or slowing down? And how about profits? Are margins compressing or expanding? 

When looking for the market’s top performers, we want to find stocks that are growing sales and earnings. Moreover, we want to see sales growth acceleration, meaning the business is seeing underlying sales momentum. The same goes for earnings growth. 

Additionally, we want to see profit margin expansion, too. That means we’re hoping to uncover businesses whose profit margins are higher today than where they were last year. 

When a stock meets all those criteria, Auspex deems it fundamentally strong. 

And not many meet such strict criteria. 

That is, very few stocks have rising and accelerating sales and earnings growth, as well as profit margin expansion, all at the same time.

When we have Auspex scan the markets, it analyzes a universe of roughly 14,000 stocks.

In a recent scan we conducted, only about 300 of those 14,000 stocks were deemed fundamentally strong, with accelerating sales and earnings growth and swelling profit margins. 

That is just about 2% of all possible picks. 

Yet, the complete list of the most promising stocks Auspex flags is even narrower.