10 Quality Stocks
The likelihood of a well-managed company to excel in the future is greater than the likelihood of a poorly managed enterprise to be profitable in the future.
Get to know the 4 Dimensions of Quality Stocks
It's all about Quality Stocks
As a result, a Quality Stock has a high degree of Stability. It delivers high returns with relatively low downside risk. But how reliably can this be measured ? Let's view an example.
The All-in-one overview of the strongest stocks globally
Get the stability rankings of 14,000+ stocks worldwide
- Filter: use the dropdown boxes to select just one or a combination of a Sector, Industry or Exchange.
- Zoom: hold and drag a rectangle with a mouse to zoom in or expand an area with two fingers.
- Hide: click on the legend to hide/view data points (green/red items).
- Chart: click the stock name to see its chart in Yahoo Finance. There, make sure to scroll the chart to the current date.
- Not shown: stocks with zero volume on the day of calculation and stocks with negative return since inception are not shown.
How to read the chart (The 4 Dimensions)
this metric is the fundamental algorithm to identify the robustness and stability of a time series. The higher the metric the more robust is the stock's price over its entire lifetime. Only rankings above 100 (yellow area) have produced returns (incl. dividends) that have sufficiently compensated for the risk taken over an extended period of time.
Rule of thumb:
right is better than left
this metric is a subset of 'Long-term Stability' and measures the most recent stability value since the last turning point. The higher the value relative to 'Long-term Stability', the higher the current Momentum. Only rankings above 100 (blue area) have produced returns (incl. dividends) that have sufficiently compensated for the risk taken over a reasonably long period.
Rule of thumb:
higher is better than lower
this metric measures the 30 day change of 'Long-term Stability'. A strengthening of stability (indicated in green) means that returns are outweighing current risk. A weakening of stability (indicated in red) is a warning signal of increased risk ahead.
Rule of thumb:
green is better than red
is given as a daily average. The higher the volume the larger the point.
Rule of thumb:
larger is better than smaller
A model representation of stock price patterns
And where to find them in the All-in-one chart above
Long-term Stability is an overall stability measure: the time-adjusted return-to-risk ratio (see explanation above) is taken of the entire data set of a stock. Above the threshold value of 100 a stock can be deemed as having adequate returns (incl. dividends) relative to risk. Only 13 out of 1000 stocks exceed this threshold and operate in a consistently growing or meanwhile maturing business.
Medium-term Momentum is an optimum stability measure: the time-adjusted return-to-risk ratio (see explanation above) is taken of the longest possible past time window from today which yields the maximum value. This longest time window typically starts at a major turning point of strength and is shorter than the entire time frame, hence 'medium-term Momentum'. Also here, a value above the threshold of 100 indicates adequate return (incl. dividends) relative to risk. The value can never be less than the long-term Stability value. The higher the Momentum value relative to long-term Stability, the stronger the turning point turned out to be. Only 50 out of 1000 stocks have recently shown Stability of different time length where return compensates sufficiently for the risk taken.
The great majority, namely 93.7% of all stocks do not compensate enough for the risk taken and are therefore in the pool of volatile, fluctuating, non-directional, erratic and instable stocks.
Therefore, the best knowledge and most irrational speculation of all investors is aggregated and visible in past and current stock prices. But the higher the consensus (or the lower the information surprise) among so-called fundamentalists, technicians, informed and uninformed investors the less choppy the price fluctuation of the stock is likely to be. The persistence of high consensus over time qualifies for a high Stability (a value > 100) measure. It is an indication that the investor community has identified a company as being a quality stock*.
To be clear: businesses are dynamic and constantly changing. What has performed in the past may fail tomorrow. But: the likelihood of a well managed company to excel in the future is probably higher than the likelihood of a badly managed company to excel in the future. Would you not trust your money to Warren Buffett because he has excelled in the past ?
More insights of the same data set
The 14,000+ stocks Table
- Sort: click the arrows next to the column title to sort ascending or descending.
- Search: enter any string to search entries in any column.
- Name: click on the Name to get the stock's chart.
- Momentum: a Momentum greater 100 will be colored in light blue.
- Short-term: a positive Short-term value (= green datapoints in charts) indicates a strengthening of Stability.
- Stability: a Stability greater 100 will be colored in yellow and overrides the Momentum value.
Which Sectors, Industries and Exchanges contain Quality Stocks ?
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