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How Piotroski Score Can Power Up Your Investing Game

Published 04-09-2024, 10:33 am

Are you tired of sifting through endless piles of stock data, hoping to uncover a promising investment? Say goodbye to the frustration and let InvestingPro+ be your go-to tool for streamlined and insightful stock analysis.

At the heart of InvestingPro+ lies its powerful stock screener, driven by the Piotroski Score—an innovative tool for savvy investors. Created by Professor Joseph Piotroski, this score evaluates a company's financial health using key metrics like profitability, debt levels, liquidity, and operational efficiency. It’s a simple yet effective way to pinpoint companies that are financially sound and ready for growth.

The Piotroski Score is built on nine criteria, each scored as either a 1 or a 0, adding up to a maximum score of 9. These criteria are grouped into three categories: profitability, leverage and liquidity, and operational efficiency. For profitability, the score considers indicators like return on assets and cash flow from operations. Leverage and liquidity focus on changes in a company’s debt levels and current ratio, while operational efficiency is measured by metrics like gross margin and asset turnover. Companies with scores between 7 and 9 are considered to have strong financial health and are likely to perform well in the market.

Image Source: InvestingPro+

With just a few clicks, the Piotroski Score screener filters through thousands of stocks to find those with high scores and strong potential. This saves you time and enhances your portfolio by highlighting companies with solid financials. For example, stocks with a Piotroski Score of 8 or 9 can be further refined to uncover even more promising investments.

But InvestingPro+ doesn't stop at the Piotroski Score. It offers a variety of screening options to suit every investment style. Whether you’re chasing momentum, searching for value, or looking for bargains, InvestingPro+ has tools for you. Find top-performing momentum stocks, discover undervalued gems at 52-week lows, or create custom screeners tailored to your specific criteria. From dividend champions to growth opportunities, the platform offers endless possibilities.

InvestingPro+ revolutionizes the way you analyze stocks, making it easier and more efficient to discover high-quality investments. Say goodbye to data overload and hello to a smarter, more focused investment strategy with InvestingPro+.

Read More: ProPicks: Your AI-Powered Path to Market Outperformance

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