Small-cap value investing has been a market beating strategy over the long-term, despite its struggles in recent years. This approach focuses on smaller companies (typically with market capitalizations between $300 million and $2 billion) that are undervalued relative to their fundamentals. There are several reasons why this strategy has proven effective over time: Validea’s Approach to Small-Cap Value Validea’s stock screening and rating system is based on the strategies of legendary investors and academic research.… Read More The post Five Top Small-Cap Value Stocks Based on the Strategies ..read more

Below is our trend following update for September of 2024. Our trend following system uses multiple moving averages to identify the long-term trend in a variety of equity indexes, asset classes, sectors and investment styles. All the major asset classes and equity indexes remain in uptrends with the exception of commodities. All sectors remain in uptrends according to our system. Across the value and growth spectrum, all investment styles also remain in uptrends For more… Read More The post Validea Trend Following: September 2024 Update appeared first on Validea's Guru Investor Blog ..read more

Validea’s Peter Lynch strategy is based on the investment philosophy of legendary fund manager Peter Lynch, who ran Fidelity’s Magellan Fund from 1977 to 1990. The strategy focuses on identifying companies with strong growth potential at reasonable prices, often referred to as “growth at a reasonable price” or GARP investing. Key criteria in this strategy include a low price-to-earnings growth (PEG) ratio, which compares a stock’s price-to-earnings ratio to its earnings growth rate. Lynch favored… Read More The post Ten Top Peter Lynch Stocks appeared first on Validea's Guru Investor Blog ..read more

In the world of investing, the concept of an economic moat is crucial for identifying companies with sustainable competitive advantages. Coined by Warren Buffett, a moat refers to a company’s ability to maintain its market position and profitability over time, despite competitive pressures. Just as a castle’s moat provides protection from invaders, an economic moat shields a company from competitors, allowing it to generate superior returns for investors. Companies with wide moats tend to maintain… Read More The post Finding Wide Moat Stocks: A Qualitative and Quantitative Guide appeared firs ..read more

Here is the latest value spread update for September from Validea’s market valuation tool. Rather than focusing on market-cap weighted indexes like the S&P 500, our tool focuses on the valuation of the average stock relative to history. We use the median of our investable universe of 2700 stocks to perform the calculation. To compare value vs. growth, we look at the top decile of the cheapest stocks and compare it to the top decile… Read More The post Validea Value Spread Update – September 2024 appeared first on Validea's Guru Investor Blog ..read more

Peter Lynch is renowned for his “buy what you know” philosophy and stellar track record managing Fidelity’s Magellan Fund. While Lynch looked for companies he understood, he also relied heavily on quantitative metrics to find attractive investments. Validea has created a model based on Lynch’s approach that scores stocks according to key criteria he emphasized. When combined with momentum factors, this strategy aims to identify reasonably priced growth stocks that are also trending upwards in… Read More The post Five High Momentum Top Peter Lynch Stocks appeared first on Validea's Guru Invest ..read more

Validea’s Ben Graham strategy is based on the value investing approach pioneered by Benjamin Graham, often called the “Father of Value Investing”. This strategy aims to identify undervalued stocks by focusing on companies with strong financial positions and consistent earnings. The approach uses strict criteria to select stocks, emphasizing safety and value over growth potential. The strategy employs several key financial metrics to evaluate potential investments. These include a minimum market capitalization, a strong current… Read More The post Top Benjamin Graham Stocks – September 2024 ap ..read more

In this episode, we dive into key lessons from our recent Excess Returns interview with valuation expert Aswath Damodaran. We offer our own perspectives on Damodaran’s thought-provoking ideas and discuss how they apply to today’s investing environment. Whether you’re a professional or individual investor, our discussion provides valuable food for thought on the future of valuation, investing strategies, and financial markets. ?️ Watch on YouTube ? Listen on Apple Podcasts ? Listen on Spotify The post Practical Lessons from Aswath Damodaran appeared first on Validea's Guru Investor Blog ..read more

In the vast ocean of investment strategies, momentum investing stands out as a surfboard that catches the biggest waves. Unlike its more intuitive cousins such as value or quality investing, momentum doesn’t rely on fundamental analysis of a company’s financials. Instead, it’s all about riding the wave of market sentiment. What is Momentum Investing? At its core, momentum investing is based on a simple premise: what goes up, will keep going up (at least for… Read More The post Riding the Wave: Understanding Momentum Investing appeared first on Validea's Guru Investor Blog ..read more

In today’s unpredictable financial landscape, investors are increasingly seeking ways to help mitigate risk. One strategy that can make sense is focusing on low beta stocks that also demonstrate solid fundamentals. Let’s explore the benefits of this approach and highlight some standout companies that fit the bill. Understanding Beta and Its Importance Beta is a measure of a stock’s volatility in relation to the overall market. A beta of 1 indicates that the stock moves… Read More The post Five Fundamentally Sound Low Beta Stocks for Volatile Markets appeared first on Validea's Guru Investor B ..read more