Best Stocks with Predictive Metrics + Cheatsheet

ValueRay simplifies stock selection ✓ Quickly identify high-potential stocks using proven predictive metrics and make better investment decisions.

Top 30 Stocks by GARP Metrics and Peer-Group Analyses

SYMBOL	MKT CAP	VRT	SIGNAL	RS	SAFETY	SUE	REVISIONS
WDC _NASDAQ Western Digital	168B	84	0.52	99	79	2.41	+80%
EXPD _NYSE Expeditors International of	22.9B	83	0.77	81	84	4.42	+57%
NTAP _NASDAQ NetApp	32.3B	82	1.00	95	82	5.55	+58%
AGX _NYSE Argan	8.44B	82	0.70	91	84	3.46	+53%
NWPX _NASDAQ Northwest Pipe	1.25B	80	0.24	99	90	4.75	+62%
INSW _NYSE International Seaways	4.57B	79	0.57	97	73	8.00	+36%
CRS _NYSE Carpenter Technology	29.2B	78	0.62	96	87	2.26	+62%
KEYS _NYSE Keysight Technologies	56.1B	78	0.94	89	81	4.82	+93%
OII _NYSE Oceaneering International	4.79B	77	0.99	97	77	4.66	+29%
PSMT _NASDAQ PriceSmart	5.75B	77	1.08	89	88	4.13	+40%
HLIO _NYSE Helios Technologies	2.64B	76	0.85	88	86	4.66	+58%
MYCR _ST Mycronic publ	7.03B	76	0.43	89	82	2.50	+29%
VCTR _NASDAQ Victory Capital Holdings	6.08B	75	1.23	90	70	5.88	+58%
CCSI _NASDAQ Consensus Cloud Solutions	669M	75	1.00	92	82	2.73	+79%
EZPW _NASDAQ EZCORP	1.86B	75	0.98	91	81	8.00	+46%
DGX _NYSE Quest Diagnostics	25.1B	74	0.67	81	78	6.52	+64%
BLBD _NASDAQ Blue Bird	2.54B	74	1.15	88	78	1.97	+36%
SN _NYSE SharkNinja	21.0B	73	0.90	86	83	2.12	+33%
MSM _NYSE MSC Industrial Direct	7.11B	73	2.19	89	85	3.73	+77%
BELFA _NASDAQ Bel Fuse	2.97B	72	0.23	87	84	1.90	+79%
ESLT _NASDAQ Elbit Systems	34.7B	72	1.04	84	75	3.35	+80%
LIVN _NASDAQ LivaNova	4.30B	72	1.11	90	71	5.04	+45%
PGNY _NASDAQ Progyny	2.44B	72	0.94	94	78	3.91	+25%
TYRES _HE Nokian Renkaat	2.36B	72	1.75	95	93	2.55	+40%
AAMI _NYSE Acadian Asset Management	2.99B	72	0.91	94	79	2.91	+70%
MRX _NASDAQ Marex Ordinary Shares	4.50B	71	1.14	95	71	4.91	+50%
TCMD _NASDAQ Tactile Systems Technology	620M	71	0.80	94	83	1.64	+44%
DGII _NASDAQ Digi International	2.50B	70	0.82	94	86	4.91	+62%
JNJ _NYSE Johnson & Johnson	624B	70	0.66	85	74	1.73	+44%
RS _NYSE Reliance Steel & Aluminum	19.6B	69	0.92	81	85	6.84	+67%

How We Filter

Valuation & Momentum

Forward P/E 5 - 30

RS (IBD) > 80

Idiosyncratic Score > 85

Quality & Risk

VR Total Rating > 65

Altman-Z'' > 1.5

Beneish-M < -2.1

Peers & Earnings

ROIC > 50th percentile

Gross Margin > 50th percentile

EPS + Rev SUE > 1.5

Approach: High-quality industry leaders with strong momentum that beat earnings expectations - combining fundamental strength with peer outperformance, expecting a Post-Earnings Announcement Drift.

The Four Principles of Profitable Investing

1. Economic Moat

High switching costs, unbeatable prices, intangible assets (patents, trademarks, approvals, brand, geographic advantage) or network effects (first mover = legal monopolist).

2. Buy at Fair Value or below

Evaluate historical P/E, P/B and P/S over the last 10 years. Run a DCF valuation with a margin of safety.

3. Let it Compound

Avoid trading - commissions, taxes and you will miss the best spots by 10% anyway.

4. Know when to sell

It was a mistake to buy in the first place.
The stock became wildly overvalued (P/E Forward, PEG in the 90+ percentile of its peer group).
The moat has been destroyed or fundamentals are deteriorating.
You need the money for something that matters more (inner peace > portfolio).

Generic Screener Recommendations

Average Volume > 250,000

Ensures smaller spreads and faster execution. For options trading: > 1,000,000.

Market Cap > $500M

Avoids nano caps and reduces risk of price manipulation. For options: > $5B.

Price > $7

Avoids penny stocks — often come with information problems and manipulation risk.

Age > 2 years

Ensures access to at least 2 fiscal years or 8 quarters of financial data.

Recommended Fundamental Ratios

Profitability

ROIC > 15%

Net Profit Margin > 20%

FCF Margin > 7%

Growth

Revenue Growth > 10% YoY

EPS Growth > 10% YoY

Debt

Net Debt / EBITDA < 3

Net Debt / FCF < 4

Debt / Equity < 80%

ROIC > WACC

Analyzing Earning Sheets

Low volatility of margins

Historically, gross margins should be stable and predictable.

Pricing power

High gross margins > 30%.

Low Capital Intensity

CAPEX/Sales < 5% and CAPEX/OCF < 15%.

Skin in the Game

Owner & Family > 20% of shares.

Comparing Financial Ratios Business

Sustainable, high ROIC (> WACC) with recurring revenues, high gross margins and low capital intensity.

Best CAPEX/Sales in peer group.

Capital Allocation (by priority)

1. Reinvest for organic growth

ROIC > 20%, historically stable.

2. Acquisitions

60%–90% don't create value.

3. Share buybacks

Preferable over dividends.

4. Dividends

20%–35% of EPS (only in absence of better alternatives).

How to Analyze a Stock

Understand the Product

Annual reports, investor presentations, shareholder letters.

Revenue Split

Segment diversification (reliance on one product or customer group?) and geographic split (geopolitical risks?).

Skin in the Game

There are 1,000 reasons to sell a stock, but only one to buy. Which insiders are buying/holding?

Moat

Check the ROIC curve over 3–5 years. The more stable, the higher the moat.

Capital Intensity

CAPEX/Sales < 5%, CAPEX/OCF < 15%.

Financial Health

Interest Coverage (EBIT/Interest) > 10, Net Debt/FCF < 4.

Profitability

Gross Margin > 30%, FCF Margin > 20% (industry-dependent).

Historical Growth

Revenue > 5% YoY, Earnings > 7% YoY.

Outlook

Secular trends: urbanization, aging, cybersecurity, obesity, digital payments.