My Perfect Stocks for January

[] Today's market commentary from TradingPub is here! To view this email as a web page, go [here.]( To view this email as a web page, go [here.]( [] [] [] Want to get in on Lance Ippolito’s final trades of 2023? Join him for a LIVE trading session 1 p.m. ET on Friday — [save your seat here!]( My Perfect Stocks for January Dear Fellow Trader: My friend Tim calls them “perfect stocks.” I agree. If you want great names for the long term, we use three metrics that are critical to finding the best names to trade around. • The Piotroski F-score. • The Altman Z-score. • A valuation rank. They’re optionable, meaning they have an options chain. Now, that sounds overly simple. Well, it’s not… Because the stocks we identify have sound fundamentals — which seem to perform well in this current economy. Let’s dive into those perfect stocks. The Perfect Stocks We start each screen by focusing on improving financial growth and low debt exposure — the F-Score tells both. This score was created by former Stanford/Chicago Professor Joseph Piotroski. The F-Score — or Piotroski Score — is a nine-point system that rewards each company for meeting a specific criterion on its balance sheet. If the company meets all nine criteria, it has an F-score of 9. On its own, just this number is incredibly powerful, as a strong score is a sign of outstanding financial discipline at the company. Let’s look at all nine principles: 1. Positive net income: Assign 1 if the company has positive net income in the current year; otherwise, assign 0. 2. Positive operating cash flow: Assign 1 if the company has positive operating cash flow in the current year; otherwise, assign 0. 3. Increasing return on assets (ROA): Assign 1 if the company’s ROA is higher in the current year compared to the previous year; otherwise, assign 0. 4. Positive cash flow from operations in relation to net income: Assign 1 if the company’s operating cash flow is greater than net income; otherwise, assign 0. 5. Decreasing leverage: Assign 1 if the company’s long-term debt ratio is lower in the current year compared to the previous year; otherwise, assign 0. 6. Increasing current ratio: Assign 1 if the company’s current ratio (current assets divided by current liabilities) is higher in the current year than the previous year; otherwise, assign 0. 7. No dilution of shares: Assign 1 if the company did not issue additional shares of common stock in the last year; otherwise, assign 0. 8. Increasing gross margin: Assign 1 if the company’s gross margin (gross profit divided by sales) is higher in the current year than the previous year; otherwise, assign 0. 9. Increasing asset turnover: Assign 1 if the company’s asset turnover (sales divided by average total assets) is higher in the current year compared to the previous year; otherwise, assign 0. Then there’s the Altman Z-Score. A weighted average of five metrics determines whether a company might go out of business. So, if a company falls below 2.6, it has a risky balance sheet. Why is it risky? There are large debt loads or weak cash flow. Simple as that. We always want to find stocks with a Z-Score of 3 or higher. I don’t know what’s coming in the rest of 2023, let alone 2024. So, I want to ensure that I’m protected if a major credit event transpires. We have many questions about future liquidity, and these names are the ones built to ride out a potential storm. They tell us RIGHT NOW what is working in the U.S. economy. Finally, I added a quick valuation score. We want stocks trading at cheap buyout multiples… It’s as simple as that. Since we are fans of selling put spreads on stocks that we want to own on a monthly rotation, I’ve ensured that these stocks have liquid options chains. So, what does this list offer us heading into January? It’s a light list… because of the recent rally. What the Screen Shows A financial manager… a global shipping company… and a shipping company. That’s it. It speaks to what works now but also shows that this market is overstretched. I love the trucking companies right now, like Wabash National Corp. (NYSE: WNC). I think it’s a great long-term play in the last-mile space. International Seaways Inc. (NYSE: INSW) is cheap. I couldn’t tell you a thing about Federated Hermes Inc. (NYSE: FHI). But I’ll dig into it. For now, think about putting spreads on a name like WNC. I think trucking stocks are only heading higher with Yellow — a rival — going out of business. Take what the market — and the economy are giving you. [] Chat soon, Garrett {NAME} *This is for informational and educational purposes only. There is an inherent risk in trading, so trade at your own risk. [] _______________________________________________ [] 1 Major Trading Breakthrough Just Set Us on the Good Side of 2024 Most traders find it hard to stay consistent in the stock market because of one major problem… They lack systems to detect institutional order flow… in real time. [Institutional order flow moves markets.]( In fact, it’s the heartbeat of the market. Now, if you’re one of these traders, I have a special new year message for you… There’s a brand-new way for you to create more consistency in your trading as we head into 2024… Thanks to a major trading breakthrough that lets regular folks track order flow from the “smart money” in real time! In fact as you’ll see, this breakthrough is the reason why I believe 2024 will be filled with ENDLESS possibilities. But don’t just take my word for it… [Go See It for Yourself]( [] _______________________________________________ [] Want to get a link to my TradingPub articles as soon as they post? I’ve got you covered! Telegram is an entirely free messaging app and getting access is as easy as 1… 2… 3… 1. Download Telegram on your mobile device (Before you can add Telegram to your desktop computer, you must download the application on your phone and create your account: To download to your iPhone, [click here](. To download to your Android device, [click here](. After the download is complete, please create an account. NOTE: You can manage your privacy settings by clicking “Settings,” and then “Privacy & Security.” 2. Download Telegram on your desktop: Once you’ve downloaded Telegram onto your mobile device and created your personal account, you can download it onto your desktop computer. To download onto your PC, [click here](. To download onto your MacOS, [click here](. 3. Then add the Garrett {NAME} channel and you’re set: [9_jjnFuAvno0MjNh]( See you there! Garrett [] _______________________________________________ [] [] [] Want to get in on Lance Ippolito’s final trades of 2023? Join him for a LIVE trading session 1 p.m. ET on Friday — [save your seat here!]( My Perfect Stocks for January Dear Fellow Trader: My friend Tim calls them “perfect stocks.” I agree. If you want great names for the long term, we use three metrics that are critical to finding the best names to trade around. - The Piotroski F-score. - The Altman Z-score. - A valuation rank. They’re optionable, meaning they have an options chain. Now, that sounds overly simple. Well, it’s not… Because the stocks we identify have sound fundamentals — which seem to perform well in this current economy. Let’s dive into those perfect stocks. The Perfect Stocks We start each screen by focusing on improving financial growth and low debt exposure — the F-Score tells both. This score was created by former Stanford/Chicago Professor Joseph Piotroski. The F-Score — or Piotroski Score — is a nine-point system that rewards each company for meeting a specific criterion on its balance sheet. If the company meets all nine criteria, it has an F-score of 9. On its own, just this number is incredibly powerful, as a strong score is a sign of outstanding financial discipline at the company. Let’s look at all nine principles: 1. Positive net income: Assign 1 if the company has positive net income in the current year; otherwise, assign 0. 2. Positive operating cash flow: Assign 1 if the company has positive operating cash flow in the current year; otherwise, assign 0. 3. Increasing return on assets (ROA): Assign 1 if the company’s ROA is higher in the current year compared to the previous year; otherwise, assign 0. 4. Positive cash flow from operations in relation to net income: Assign 1 if the company’s operating cash flow is greater than net income; otherwise, assign 0. 5. Decreasing leverage: Assign 1 if the company’s long-term debt ratio is lower in the current year compared to the previous year; otherwise, assign 0. 6. Increasing current ratio: Assign 1 if the company’s current ratio (current assets divided by current liabilities) is higher in the current year than the previous year; otherwise, assign 0. 7. No dilution of shares: Assign 1 if the company did not issue additional shares of common stock in the last year; otherwise, assign 0. 8. Increasing gross margin: Assign 1 if the company’s gross margin (gross profit divided by sales) is higher in the current year than the previous year; otherwise, assign 0. 9. Increasing asset turnover: Assign 1 if the company’s asset turnover (sales divided by average total assets) is higher in the current year compared to the previous year; otherwise, assign 0. Then there’s the Altman Z-Score. A weighted average of five metrics determines whether a company might go out of business. So, if a company falls below 2.6, it has a risky balance sheet. Why is it risky? There are large debt loads or weak cash flow. Simple as that. We always want to find stocks with a Z-Score of 3 or higher. I don’t know what’s coming in the rest of 2023, let alone 2024. So, I want to ensure that I’m protected if a major credit event transpires. We have many questions about future liquidity, and these names are the ones built to ride out a potential storm. They tell us RIGHT NOW what is working in the U.S. economy. Finally, I added a quick valuation score. We want stocks trading at cheap buyout multiples… It’s as simple as that. Since we are fans of selling put spreads on stocks that we want to own on a monthly rotation, I’ve ensured that these stocks have liquid options chains. So, what does this list offer us heading into January? It’s a light list… because of the recent rally. What the Screen Shows A financial manager… a global shipping company… and a shipping company. That’s it. It speaks to what works now but also shows that this market is overstretched. I love the trucking companies right now, like Wabash National Corp. (NYSE: WNC). I think it’s a great long-term play in the last-mile space. International Seaways Inc. (NYSE: INSW) is cheap. I couldn’t tell you a thing about Federated Hermes Inc. (NYSE: FHI). But I’ll dig into it. For now, think about putting spreads on a name like WNC. I think trucking stocks are only heading higher with Yellow — a rival — going out of business. Take what the market — and the economy are giving you. [] Chat soon, Garrett {NAME} *This is for informational and educational purposes only. There is an inherent risk in trading, so trade at your own risk. [] _______________________________________________ [] 1 Major Trading Breakthrough Just Set Us on the Good Side of 2024 Most traders find it hard to stay consistent in the stock market because of one major problem… They lack systems to detect institutional order flow… in real time. [Institutional order flow moves markets.]( In fact, it’s the heartbeat of the market. Now, if you’re one of these traders, I have a special new year message for you… There’s a brand-new way for you to create more consistency in your trading as we head into 2024… Thanks to a major trading breakthrough that lets regular folks track order flow from the “smart money” in real time! In fact as you’ll see, this breakthrough is the reason why I believe 2024 will be filled with ENDLESS possibilities. But don’t just take my word for it… [Go See It for Yourself]( [] _______________________________________________ [] Want to get a link to my TradingPub articles as soon as they post? I’ve got you covered! Telegram is an entirely free messaging app and getting access is as easy as 1… 2… 3… 1. Download Telegram on your mobile device (Before you can add Telegram to your desktop computer, you must download the application on your phone and create your account: To download to your iPhone, [click here](. To download to your Android device, [click here](. After the download is complete, please create an account. NOTE: You can manage your privacy settings by clicking “Settings,” and then “Privacy & Security.” 2. Download Telegram on your desktop: Once you’ve downloaded Telegram onto your mobile device and created your personal account, you can download it onto your desktop computer. To download onto your PC, [click here](. To download onto your MacOS, [click here](. 3. Then add the Garrett {NAME} channel and you’re set: [9_jjnFuAvno0MjNh]( See you there! Garrett [] _______________________________________________ [] Disclaimer: The material in this document is for informational purposes based on our proprietary research. It is not an offering, specific recommendation, or a solicitation of an offer to buy or sell any securities mentioned or discussed herein. Any performance results discussed herein represent past performance, are not a guarantee of future performance, and are not indicative of any specific investment. Due to the timing of information presented, any investment performance reflected within this document may be adjusted after the publication and distribution of this material. There can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this communication will be profitable, be equal to any corresponding indicated historical performance levels or be suitable for your portfolio. Any investment results set forth in this document are not net of expenses and execution costs, nor do they account for other relevant trading or investment fees. Please visit thetradingpub.com/terms-of-service/ for our full Terms and Conditions. A TradingPub Publication ABOUT US: We believe that the opportunity for financial literacy and freedom belongs to all people, not just those who already have years of investing experience. TradingPub provides an array of educational services and products that will help you navigate the markets and become a better investor. Trading is made simple through our online forum full of trading techniques to give you the best tools to kick-start your investing journey. We offer collaborative webinars and training; we love to teach. No matter the opportunity, we bring together a strong community of like-minded traders to focus on analyzing market news as it’s presented each day. DISCLAIMER: FOR INFORMATION PURPOSES ONLY. The materials presented from TradingPub LLC are for your informational purposes only. Neither TradingPub nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational purposes intended is at the user’s own risk. DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. TradingPub is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions. Please visit for our full Terms and Conditions. [Unsubscribe]( This email was sent to {EMAIL} by TradingPub 101 Marketside Ave, Suite 404 PMB 318 Ponte Vedra, Florida 32081, United States [] Disclaimer: The material in this document is for informational purposes based on our proprietary research. It is not an offering, specific recommendation, or a solicitation of an offer to buy or sell any securities mentioned or discussed herein. Any performance results discussed herein represent past performance, are not a guarantee of future performance, and are not indicative of any specific investment. Due to the timing of information presented, any investment performance reflected within this document may be adjusted after the publication and distribution of this material. There can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this communication will be profitable, be equal to any corresponding indicated historical performance levels or be suitable for your portfolio. Any investment results set forth in this document are not net of expenses and execution costs, nor do they account for other relevant trading or investment fees. Please visit thetradingpub.com/terms-of-service/ for our full Terms and Conditions. A TradingPub Publication ABOUT US: We believe that the opportunity for financial literacy and freedom belongs to all people, not just those who already have years of investing experience. TradingPub provides an array of educational services and products that will help you navigate the markets and become a better investor. Trading is made simple through our online forum full of trading techniques to give you the best tools to kick-start your investing journey. We offer collaborative webinars and training; we love to teach. No matter the opportunity, we bring together a strong community of like-minded traders to focus on analyzing market news as it’s presented each day. DISCLAIMER: FOR INFORMATION PURPOSES ONLY. The materials presented from TradingPub LLC are for your informational purposes only. Neither TradingPub nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational purposes intended is at the user’s own risk. DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. TradingPub is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions. Please visit for our full Terms and Conditions. [Unsubscribe]( This email was sent to {EMAIL} by TradingPub 101 Marketside Ave, Suite 404 PMB 318 Ponte Vedra, Florida 32081, United States