Alpha Picks uses a rigorous, data-driven methodology to select its top-performing stocks. The criteria for stock selection include:
Quantitative analysis:
- Stocks must have a "Strong Buy" quant rating for at least 75 consecutive days
- The quant ratings model ranks stocks based on five factors: value, growth, profitability, EPS revisions, and momentum
Stock characteristics:
- Must be a U.S. common stock (no ADRs)
- Cannot be a REIT
- 3-month average market capitalization greater than $500M
- Stock price greater than $10
- Has not been recommended in the past year
Portfolio process:
- Two "Strong Buy" rated stocks are selected each month
- One pick is added on the first trading day of the month, and another on the 15th or the closest trading day after