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 20 Stocks by GARP Metrics and Peer-Group Analyses
Select Metrics
SYMBOL MKT CAP VRT SIGNAL RS IS IS SHARE PERF 3M PERF 12M ALPHA BETA VOLATILITY SAFETY PIOTROSKI ROIC-WACC SUE REVISIONS ROIC RANK FWD P/E DIV YIELD
STX NASDAQ
Seagate Technology
181B 89 1.3 99 94 57% 4.8% 366.2% 328.5% 2.70 71.5% 81 8 39.5 pp 6.79 +96% 78 22.8 0.8%
HALO NASDAQ
Halozyme Therapeutics
12.5B 84 1.5 94 94 88% 50.2% 41.2% 38.8% -0.10 36.8% 76 9 13.2 pp 4.47 +31% 91 11.2 -
ATRO NASDAQ
Astronics
3.21B 83 0.6 94 97 77% 12.0% 147.4% 124.1% 1.27 53.5% 92 8 5.5 pp 3.76 +36% 91 27.2 -
WDC NASDAQ
Western Digital
159B 80 1.0 99 88 61% -6.8% 411.1% 376.1% 2.58 56.3% 86 7 63.9 pp 1.93 +91% 93 21.7 0.2%
KEYS NYSE
Keysight Technologies
54.9B 78 1.5 86 87 53% -0.1% 95.8% 64.6% 1.84 35.0% 77 8 1.7 pp 7.93 +64% 74 20.2 -
OII NYSE
Oceaneering International
5.04B 76 0.9 93 90 71% 24.3% 103.1% 78.4% 1.31 47.8% 77 6 2.7 pp 4.66 +55% 83 18.8 -
FTDR NASDAQ
Frontdoor
5.69B 75 0.9 82 90 94% 22.1% 23.1% 4.1% 1.02 34.6% 85 9 10.6 pp 1.76 +75% 88 15.6 -
MILDEF ST
MilDef
1.13B 75 0.6 91 97 88% 20.8% 32.8% 40.0% -0.25 55.4% 71 7 8.7 pp 1.80 +46% 87 27.4 0.4%
CHEF NASDAQ
The Chefs Warehouse
4.66B 74 1.0 94 95 82% 32.2% 69.1% 55.3% 0.62 36.7% 83 4 1.4 pp 5.91 +85% 50 29.3 -
CSCO NASDAQ
Cisco Systems
428B 74 0.9 81 84 70% -8.7% 65.9% 49.2% 0.93 28.9% 76 7 6.3 pp 8.00 +72% 78 20.5 2.1%
SXT NYSE
Sensient Technologies
5.70B 74 1.0 81 84 90% 11.8% 21.4% 11.4% 0.25 29.5% 87 6 2.3 pp 3.84 +79% 67 22.7 1.6%
DGX NYSE
Quest Diagnostics
26.4B 73 0.7 77 87 97% 15.6% 31.2% 27.8% -0.06 21.4% 81 7 3.5 pp 6.83 +89% 55 19.7 1.7%
CON NYSE
Concentra Holdings Parent
4.40B 73 1.1 93 93 75% 31.2% 55.6% 40.0% 0.52 29.3% 74 6 5.1 pp 5.72 +50% 77 17.6 1.0%
METSO HE
Metso
18.2B 71 0.6 84 82 82% 21.6% 62.0% 43.4% 1.21 31.5% 85 8 3.9 pp -0.99 +15% 83 21.1 2.8%
PBI NYSE
Pitney Bowes
2.39B 70 0.5 88 88 87% 2.9% 50.7% 22.3% 0.90 37.3% 88 7 10.7 pp 1.19 +46% 83 9.5 3.0%
PAYC NYSE
Paycom Software
10.8B 69 0.7 90 90 74% 58.6% -2.2% -15.4% 0.56 44.3% 78 7 19.3 pp 6.92 +94% 91 18.0 1.0%
KARO NASDAQ
Karooooo
2.01B 68 1.0 87 92 86% 40.7% 20.7% 0.4% 0.99 59.8% 82 7 14.4 pp 0.20 +9% 88 26.6 2.4%
DAVE NASDAQ
Dave
4.86B 68 0.7 94 92 73% 29.8% 66.6% 28.1% 3.64 87.3% 73 8 28.3 pp -4.05 +74% 97 18.6 -
GPRK NYSE
GeoPark
772M 67 0.8 90 76 65% 10.1% 92.9% 84.0% 0.56 48.6% 76 5 8.9 pp 0.12 +40% 84 22.3 1.2%
NESTE HE
Neste Oil
29.5B 67 1.3 93 89 79% 19.2% 99.7% 91.1% 0.31 41.9% 89 6 6.7 pp -0.03 +61% 64 13.1 0.7%
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.