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5 Stocks To Buy Now According To The Piotroski Score

Published 10/27/2022, 10:47 AM
Updated 07/09/2023, 06:31 AM
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  • The Piotroski Score is one of the many strategies for searching for potential winners within InvestingPro
  • The method uses nine criteria to evaluate companies from a fundamental point of view
  • Based on current metrics, we sorted five companies with a high likelihood of posting solid long-term results
  • The Piotroski Score is one of the default strategies for searching for stocks within InvestingPro. It was created in 2002 by Joseph Piotroski with the objective of rating companies from a fundamental analysis (FA) perspective.

    The method uses the following nine criteria to assess the likelihood of long-term stock appreciation:

    1. ROA has to be positive in the current year.
    2. Positive cash flow in the current year.
    3. ROA must be higher than the previous year.
    4. Cash Flow has to be better than net income.
    5. Long-term debt must be lower than last year.
    6. Current ratio has to be higher than the previous year.
    7. There was no share increase during the year (capital dilution).
    8. Gross margin must be higher than last year.
    9. Asset turnover must be higher than last year.

    For each criterion the company meets, a point is assigned to its score, making nine the highest possible score.

    The method recommends only buying shares of companies with a score of seven or higher. Accordingly, if, over time, a company's situation changes and its score falls below that threshold, it would mean it's time to sell.

    Based on the Piotroski Score method and the InvestingPro tool, let's look at five companies flashing buy signals right now.

    1. Ryman Hospitality Properties

    • Piotroski Score: 8

    Ryman Hospitality Properties (NYSE:RHP) specializes in luxury convention centers and country music entertainment experiences. The company's core holdings include a network of five of the ten largest convention center hotels in the United States.

    It reports earnings results on October 31st, and the market expects $445 million in profit. EPS (earnings per share) expectations for this quarter have also increased, rising from $0.17 per share to $0.89 per share over the past 12 months.

    Ryman Hospitality Daily Chart

    2. Agenus

    • Piotroski Score: 8

    Agenus (NASDAQ:AGEN) is a clinical company that studies and develops immuno-oncology products in the United States and internationally. It was founded in 1994 and is based in Lexington, Massachusetts.

    The company was formerly known as Antigenics and changed its name to Agenus in January 2011.

    Agenus Daily Chart

    Its trend is bullish, and when it breaks above its resistance marked with a blue square, it will trigger a new strength signal. It will report results on November 8th.

    3. Amgen

    • Piotroski Score: 8

    Amgen (NASDAQ:AMGN) is a biotechnology company that focuses its research and development on treating serious diseases in the areas of oncology/hematology and cardiovascular diseases. The company develops and manufactures different therapies.

    Its dividend yield is 2.91%, and it reports results on November 3rd. The market expects EPS (earnings per share) of $4.45 per share.

    Amgen Daily Chart

    Its trend is upward, as is reflected in its ascending trend channel. It is currently hovering at a strong resistance level that held further advances in the past. This means that breaking above $261 would trigger a new strength signal.

    4. GeoPark Limited

    • Piotroski Score: 8

    GeoPark (NYSE:GPRK) is an oil and natural gas production company operating in Latin America, mainly in countries such as Colombia, Chile, Brazil, Peru, and Argentina.

    Holding a current dividend yield of 3.43%, the company presents Q3 results on November 9th, when the market expects an 11.2% increase in revenues for this quarter.

    GeoPark Daily Chart

    Its uptrend appears clearly in its upward-trending channel.

    5. Apple

    • Piotroski Score: 8

    There's little to say about Apple (NASDAQ:AAPL), the world's largest company by market cap. The Cupertino, California-based giant's diversified portfolio of gadgets and services, combined with its loyal global customer base, is widely regarded as a safety factor amid the current macroeconomic environment. It currently holds a dividend yield of 0.60%.

    Apple releases its fiscal Q4 results today after the market close, with EPS expectations (earnings per share) at $1.26 per share.

    AAPL Daily Chart

    On the technical chart, AAPL has recently managed to break out of the range of the bearish trend channel and could be preparing for a rebound—should macro conditions allow.

    Disclosure: The author currently does not own any of the securities mentioned in this article.

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