Here’s How to Unearth Quality Stocks to Buy and Hold for 2025
2024.12.13 08:50
- Simplify stock selection with powerful screening tools tailored to your strategy.
- Unlock proven investment strategies and uncover high-quality stocks with ease.
- Maximize your stock picks using advanced filters and Piotroski’s F-Score methodology.
- You can do that using InvestingPro’s powerful tools – now up to 55% off amid the Extended Cyber Monday offer!
Finding the perfect stock to invest in can feel like searching for a needle in a haystack—time-consuming, overwhelming, and often discouraging. But it doesn’t have to be this way. Thanks to powerful stock analysis tools, you can streamline the process and discover quality stocks with real upside potential.
The key? A stock screener—tailored to your preferences and customizable filters—can save you hours of sifting through endless lists of stocks. The challenge most investors face is identifying the right stocks that align with their strategy. In fact, 90 percent of investors struggle to find those elusive opportunities. The main hurdle? Time. Specifically, the time it takes to set the right filters and understand how each one impacts the stock selection process.
Enter InvestingPro, a comprehensive analytics platform that simplifies stock screening. Whether you’re an experienced investor or just starting out, InvestingPro offers a suite of predefined filters that align with proven investment strategies—helping you pinpoint quality stocks quickly.
One standout feature is its application of Professor Joseph Piotroski’s renowned “F-Score,” which estimates corporate financial strength using nine key metrics. This methodology has proven effective, generating an impressive 23% annualized return from 1976 to 1996. By using this filter, you can quickly narrow down a list of stocks to the highest-scoring options, allowing you to focus on fundamentally sound investments.
Piotroski’s F-Score evaluates stocks based on:
- Positive ROA (Return on Assets) in the current year.
- Positive cash flow in the current year.
- Higher ROA than the previous year.
- Cash flow exceeding net income.
- Reduced long-term debt compared to the previous year.
- Improved current ratio.
- No capital increase (capital dilution).
- Higher gross margin than the previous year.
- Improved asset turnover.
Each company meeting these criteria earns a point, with a maximum possible score of nine. Generally, only stocks with scores above seven are highlighted, ensuring you’re left with high-quality candidates. If a stock’s score drops below this threshold, it’s time to remove it from your watchlist. Here’s how you can access this metric:
Source: InvestingPro
And Piotroski’s F-Score is just one tool in InvestingPro’s arsenal, available within the stock screener. The platform caters to a range of investment styles, offering screeners for growth, momentum, and dividend-focused stocks. For those who prefer a fully customized approach, you can build your own screener with specific criteria tailored to your strategy.
With over 150,000 stocks to choose from, InvestingPro gives you the power to create your own investment ideas, unlocking valuable insights with just a few clicks.
Don’t have InvestingPro yet? There’s still time to get 55% off and unlock access to features like:
- ProPicks AI: Winning stocks selected by AI with a proven track record.
- InvestingPro Fair Value: Instantly determine whether a stock is undervalued or overvalued.
- Advanced Stock Screener: Search for the best stocks based on hundreds of filters and criteria.
- Top Ideas: Discover stocks favored by billionaire investors like Warren Buffett, Michael Burry, and George Soros.
Invest smarter, not harder—with InvestingPro.
Disclaimer: This article is written for informational purposes only. It is not intended to encourage the purchase of assets in any way, nor does it constitute a solicitation, offer, recommendation or suggestion to invest. I would like to remind you that all assets are evaluated from multiple perspectives and are highly risky, so any investment decision and the associated risk belongs to the investor. We also do not provide any investment advisory services.
