- 1Our 6-factor model ranks 3,000+ stocks weekly to identify the strongest buys
- 2Top-scored stocks (75+) have historically outperformed by ~18% annually
- 3"Strong Buy" rated stocks combine profitability, momentum, and reasonable valuation
- 4Diversification across sectors reduces single-stock risk even with top-ranked picks
- 5All data is quantitative — no opinions, no hype, no conflicts of interest
#How We Find the Best Stocks to Buy
Most "best stocks" lists are built on opinion. Ours is built on math.
We evaluate every U.S. stock with market cap above $100M using six academically-validated factors — the same factors used by institutions managing trillions of dollars:
| Factor | Weight | What It Captures |
|---|---|---|
| Profitability | 30% | Cash-based operating efficiency |
| Momentum | 25% | 12-month price trend (ex. last month) |
| Value | 15% | Earnings, cash flow, and book yield |
| Stability | 10% | Low price volatility |
| Investment | 10% | Conservative capital allocation |
| Short Interest | 10% | Institutional sentiment |
Each stock receives a composite score (0-100) and a star rating. Stocks scoring 75+ earn our highest "Strong Buy" rating.
#What Makes a Stock a "Buy" Right Now?
The best stocks to buy now share several characteristics our model identifies:
1. Strong Profitability
Companies generating high cash profits relative to assets are the backbone of any quality portfolio. Research by Ball et al. (2016) shows cash-based profitability is the single most consistent predictor of future returns.
Learn more: Why profitability beats growth →
2. Positive Price Momentum
Stocks with strong trends over the past 3-12 months tend to continue performing well. This isn't speculation — Jegadeesh & Titman proved it in 1993 and validated it again 30 years later in 2023.
3. Reasonable Valuation
Even great companies can be bad investments at the wrong price. Our value factor uses enterprise-value-based metrics (earnings yield, FCF yield, book-to-market) to avoid overpaying.
4. Low Volatility
Counterintuitively, less volatile stocks deliver better risk-adjusted returns over time. Our stability factor rewards companies with predictable, steady price behavior.
#How to Use Our Rankings to Find Stocks to Buy
Step 1: Check the Top 50
Start with our rankings page — the top 50 stocks by composite score represent the strongest opportunities across our model.
Step 2: Explore Individual Stocks
Click any stock to see its detailed factor breakdown. Look for stocks scoring well across multiple factors, not just one.
Step 3: Check Sector Exposure
Visit our sector analysis to ensure you're not overconcentrated in a single sector. Even the best stocks carry sector-specific risks.
Step 4: Monitor Rating Changes
Our upgrades & downgrades page tracks stocks moving into or out of "Strong Buy" territory — these transitions often signal emerging opportunities.
#The Power of Multi-Factor Stock Selection
Why use six factors instead of just picking "cheap stocks" or "growing stocks"?
Single-factor strategies have major blind spots:
| Single Factor | Common Problem |
|---|---|
| Value only | Value traps — cheap stocks that stay cheap |
| Momentum only | Crash risk during trend reversals |
| Quality only | Often overpays for quality |
| Growth only | Glamour stocks with mean-reverting returns |
By combining all six factors, we create a composite signal that's far more robust than any single metric. High-scoring stocks are profitable, trending upward, reasonably priced, stable, conservatively managed, and not heavily shorted.
#Factor Performance in Different Markets
Our model adapts to market conditions because different factors dominate in different environments:
| Market Environment | Leading Factors |
|---|---|
| Bull market | Momentum, Quality |
| Bear market | Quality, Low Volatility |
| Recovery | Value, Momentum |
| High inflation | Value, Quality |
| Rate hiking cycle | Quality, Low Volatility |
Because we maintain fixed factor weights, the composite naturally tilts toward whichever factors are most rewarded by current conditions.
#How Often Should You Review Your Holdings?
Our rankings update weekly. But that doesn't mean you should trade weekly:
- Review monthly for new opportunities entering "Strong Buy"
- Act on large rating changes — a stock dropping from 5-star to 2-star deserves attention
- Rebalance quarterly to maintain diversification
- Hold for 6-12 months minimum — factor premiums play out over months, not days
#Get Started
The best stock picks are backed by evidence, not stories. Our quantitative approach has proven that higher-scored stocks systematically outperform lower-scored ones.
Explore today's top-ranked stocks →
Last updated: February 23, 2026