Fintel’s Quality + Value + Momentum leaderboard uses an enhanced quantitative model to surface stocks suitable for long-term, patient investors
It’s slim pickings on this mid-August Momentum Monday, as Fintel’s quant dashboards reveal only six US stocks with Momentum scores above 90.
An even-smaller number sits with a combined QVM — that is, Quality + Value + Momentum — score between 100-90. That is, stocks suitable for long-term, patient investors who want maximum returns over the investment horizon.
Fintel’s Quality + Value + Momentum leaderboard uses an enhanced quantitative model to improve on the returns of the original Quality/Value model. That score, also known as the QuantSoft Score, was developed by Wilton Risenhoover and is based on his research while at UCLA Anderson School of Management.
The original Quality+Value Score is a six-factor model that ranks companies on their cash-generating ability and growth. Additionally, there is a significant value factor in it. It identifies very good, durable companies with a large moat that have fallen into disfavor by the market and are likely to recover.
So, let’s get to ‘em.
US Stocks With Momentum Score >90
| Security | Price Momo
(1m %) |
Quality Score | Value Score | Momentum
Score |
QVM
Score |
| CLS / Celestica, Inc. | 7.13 | 72.46 | 71.84 | 95.36 | 76.58 |
| STRL / Sterling Infrastructure Inc | 6.51 | 89.16 | 65.28 | 94.97 | 79.12 |
| CMT / Core Molding Technologies | 10.24 | 82.04 | 71.01 | 94.38 | 80.06 |
| IESC / IES Holdings Inc | 7.7 | 65.3 | 70.38 | 94.36 | 72.63 |
| KRT / Karat Packaging Inc | 9.32 | 82.2 | 70.71 | 92.97 | 79.88 |
| GAMB / Gambling.com Group Ltd | 17.58 | 81.03 | 50.87 | 91.25 | 68 |
US Stocks With Quality + Value + Momentum Score >90
| Security | Price Momo
(1m %) |
Quality Score | Value Score | Momentum
Score |
QVM
Score |
| SCPL / Sciplay Corp – Class A | 4.87 | 81.16 | 92.73 | 85.48 | 91.68 |
| MCEM / Monarch Cement Co. | 2.85 | 86.15 | 89.66 | 75.6 | 91.04 |
| WSM / Williams-Sonoma, Inc. | 1.93 | 85.06 | 89.83 | 74.55 | 90.64 |
| VASO / Vaso Corp | -2.19 | 87.95 | 91.12 | 61.38 | 90.08 |
The original Quality/Value score was analyzed by an independent firm which found that an investing strategy based on the scoring model outperformed both the Russell 2000 and the S&P 500 index over time.
In one test over the period of 1992 to 2013, the theoretical compound annual growth rate (CAGR) of the Quality+Value score was 20.73% vs. the Russell 2000 CAGR of 10.33%. In that analysis, the Sharpe Ratios were 0.91 (Q/V) vs. 0.46 (R2000) and the Sortino Ratios were 1.18 (Q/V) vs. 0.48 (R2000).
Want a deeper dive in Fintel’s Quality, Value and Momentum Leaderboards? Click here.
This article originally appeared on Fintel
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