Our brand-new Signal Strength Stocks weekly newsletter is where fundamental analysis meets quantitative investing.
This simple list of stock picks is based on countless hours of research, analysis, and fine-tuning of our predictive models:
- Hedgeye’s research team covers 1,000s of companies in search of the very best to help grow your wealth.
- Our CEO Keith McCullough’s quantitative market signals identify when a stock’s price is likely to go up or down.
Understanding Signal Strength Stocks
We list the stock tickers in Signal Strength Stocks based on when Keith’s signal first turned bullish.
The stocks at the top have been on Keith’s list for the longest, so that’s generally where you’ll find the biggest gains.
Keith’s signal recently turned bullish on the stocks at the bottom, often after a price move lower. That’s typically where you’ll find the highest potential opportunities.
Lastly, on the right hand side of the chart, you’ll find the name of the analyst covering the stock, the sector, and how the analyst ranks that stock against its competitors.
4 Tips for Investing Success
Keith McCullough designed Signal Strength Stocks with one goal in mind: To help you build a higher-performance portfolio.
Here are 4 tips to maximize your chances of success:
Tip #1: Manage Risk with Smart Position Sizing
Don’t invest too much (or too little) in any single stock. Keith’s minimum position size for a single stock is 1% of the value of his total portfolio. His maximum position size is 3%.
The minimum position size is for efficiency and impact. The maximum position size is for risk management.
There’s no such thing as a “one size fits all” position-sizing strategy, but you absolutely need to have one. Stick with it.
Tip #2: Fade Your Feelings, Trust the Math
A cardinal rule of investing is to fade your feelings. Don’t let fear or greed influence your decisions.
Nearly every week, Keith’s math-based signal turns bearish on some (or many) stocks from the previous week, and we remove them.
It doesn’t matter how long a stock has been on our list, how much the analyst loves it, or what the media says about it.
Signal Strength Stocks is about trusting math and playing probabilities.
A bullish signal means the stock price is likely to rise. A bearish signal tells us it’s time to get out. It’s that simple.
Tip #3: Expect Some Losers as Part of the Process
Hedgeye’s Real-Time Alerts product is based on the same quantitative signaling algorithm as Signal Strength Stocks. From 2022 through 2023, 81% of our Real-Time Alerts were winners.
Of course, that means 19% were losers.
That’s just the cost of doing business in the world of stock investing.
Hedgeye’s signaling process is designed to get you out of the losers fast—and ride the winners for as long as the odds are in your favor. If you need reassurance, review the gains of the stocks that have been on Signal Strength Stocks for the longest.
Tip #4: Develop Your Investing Process—and Execute
We understand that many investors aren’t going to buy every single stock idea listed in Signal Strength Stocks.
You can because Keith’s signal is bullish on all of them. However, you if need a narrower list, here a few options:
- Reference the Analyst Best Idea Rank column to prioritize the highest-conviction fundamental stock ideas.
- Watch The Call @ Hedgeye daily webcast and cross-reference your favorite stock ideas with Signal Strength Stocks.
- Use Signal Strength Stocks as a starting point to initiate your own research process.
It’s up to you to develop a process based on your portfolio size, your goals, the time you can dedicate, and your risk tolerance.
Once you’ve established a data-driven strategy for buying and selling, trust your process and execute it!
