Like the NFL Draft, Our New Stock-Picking System Is All about Finding Winners
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The evaluations that each team uses to create its “draft board” consist of both old-school inputs (such as college game tapes, 40-yard dash times, and pre-draft meetings) and new-school analytics (such as the S2 cognition test, which gauges how quickly and accurately a player can see order in the chaos that’s part and parcel of the football gridiron).
The more information you have, the more likely you’ll snag a generational talent and avoid the draft-day “busts” that’ll set you back years… and put your team on those “biggest-missteps-of-all-time” lists that never seem to go away.
Investing is a lot like the NFL Draft.
You want to stuff your portfolio with generational winners.
And you want to avoid the big losers that’ll grind your ego for years.
Information is the great differentiator. And the “right” information – analyzed correctly and in a timely manner – is what will separate you from everyone else.
When you get right down to it, that’s what TradeSmith is all about. Our pioneering analytics zero in on the information – the data – that matters. And we create systems that help you “draft” the right stocks, assets, or trading opportunities at just the right time.
We package that into products that meet different objectives.
And we’ve done it again, with a next-level service called Predictive Alpha Prime.
This artificial intelligence (AI) technology performs a very powerful task: It tells you what price a stock will be trading for in the very near future.
When you pair that with our other tools, the potential “winners” will jump out at you even faster.
Let me give you a quick example of how you can put all those pieces of information to work.
Home Depot Inc. (HD)✅ Green Zone
✅ Business Quality Score: 96
✅ Medium Risk
✅ Predictive Alpha One-Month Price Prediction: $303.81
Online shopping has largely made visiting a physical store irrelevant.
Why spend gas money driving to a store for one item and hoping it isn’t out of stock when you can have it delivered to your doorstep with just a few mouse clicks?
Data from our friends at LikeFolio shows that the popularity of visiting physical retailers is declining, with mentions of shopping at a store down 6% quarter-over-quarter (QoQ) and 2% year-over-year (YoY).
But tools, lumber, paint, outdoor furniture, and other home improvement supplies don’t lend themselves well to an online order, as most people want to see, touch, and ask questions about those products in person. Also, they can cost a lot of money to ship, which means online retailers aren’t keen on “disrupting” the home improvement space.
That makes Home Depot unique, and if you are looking to elevate your living space or create an ideal one from scratch, it really is a one-stop shop.
In addition to its physical products, the home improver offers truck and tool rentals, moving supplies and rentals, and protection plans.
And while its power lies in its presence as a physical retailer, it hasn’t ignored the benefits of online shopping that consumers like, as it offers free delivery on over two million items online and provides curbside pickup.
According to our tools, HD is in a healthy investable state in our Green Zone, it has an excellent Business Quality Score of 96 out of 100, our Volatility Quotient (VQ) categorizes it as a medium-risk stock, and our Predictive Alpha tool (also known as An-E) predicts a small increase in the stock price over the next month.
On top of that, to help prevent inflation from chipping away at your hard-earned savings, Home Depot pays a dividend of $8.36 per share for a yield of 2.77%, as of this writing.
Taken together, these data points illustrate Home Depot’s strength as an investment.
Bottom line: With our newest Predictive Alpha tool at your disposal, you have even more information at your disposal to help you build a portfolio of winners and keep the losers on the sidelines.