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 28 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
PAYC NYSE
Paycom Software		 12.3B 87 1.4 97 98 85% 62.8% 33.7% 23.2% 0.53 42.5% 90 7 19.7 pp 6.92 +88% 91 16.7 1.0%
SEZL NASDAQ
Sezzle		 4.46B 84 0.9 92 91 76% -17.2% 80.3% 38.9% 2.78 109.3% 93 9 36.8 pp 1.58 +73% 98 15.6 -
TTC NYSE
Toro		 9.97B 80 1.1 80 89 85% 10.3% 42.6% 30.4% 0.87 28.3% 86 10 9.5 pp 1.39 +53% 90 17.0 1.8%
HALO NASDAQ
Halozyme Therapeutics		 14.3B 79 1.3 98 99 89% 55.8% 98.8% 93.8% -0.03 35.7% 71 9 13.2 pp 4.47 +50% 90 8.2 -
NDSN NASDAQ
Nordson		 17.8B 77 1.1 80 90 78% 8.1% 40.3% 24.2% 1.04 23.6% 85 8 3.6 pp 5.22 +84% 72 24.8 1.2%
CEU TO
CES Energy Solutions		 3.01B 77 1.1 94 95 80% 22.5% 123.3% 132.4% 0.30 38.7% 84 8 10.5 pp 3.06 +6% 95 10.4 1.3%
NWPX NASDAQ
NWPX Infrastructure		 962M 76 0.9 82 89 71% -21.1% 79.8% 63.9% 1.38 34.6% 90 9 1.1 pp 2.92 +22% 49 18.9 -
PBI NYSE
Pitney Bowes		 2.37B 76 0.8 86 86 87% -1.6% 52.4% 39.2% 0.82 38.1% 87 7 11.1 pp 1.19 +46% 88 9.6 3.0%
GFF NYSE
Griffon		 4.48B 76 0.6 76 92 54% 7.1% 31.5% 13.2% 1.44 36.6% 79 9 10.2 pp 2.41 +42% 79 10.2 1.0%
FTDR NASDAQ
Frontdoor		 5.81B 75 1.8 85 84 95% 13.4% 23.6% 8.7% 0.97 34.5% 95 9 11.6 pp 1.76 +75% 89 15.8 -
HURN NASDAQ
Huron Consulting		 3.08B 75 1.5 93 96 64% 59.6% 27.0% 26.9% -0.49 36.5% 85 7 7.1 pp 4.06 +56% 67 15.5 -
KEYS NYSE
Keysight Technologies		 53.6B 73 0.8 90 89 52% 9.9% 97.3% 77.1% 1.90 47.2% 78 8 2.1 pp 7.93 +82% 71 22.0 -
ALLE NYSE
Allegion		 15.0B 73 1.1 76 94 52% 12.5% 8.4% -0.6% 0.38 25.2% 88 8 10.4 pp 3.96 +40% 76 15.9 1.5%
ATI NYSE
Allegheny Technologies		 21.4B 73 -0.1 79 81 81% -11.6% 67.8% 57.1% 1.93 43.9% 91 8 1.4 pp 3.19 +88% 78 29.7 -
IFCN SW
Inficon Holding		 5.44B 72 1.0 93 92 67% 20.1% 103.6% 65.6% 1.28 48.6% 85 6 9.7 pp 3.26 +50% 81 28.7 1.5%
CON NYSE
Concentra Holdings Parent		 5.10B 72 1.4 96 95 72% 24.4% 98.3% 88.4% 0.49 29.6% 75 6 5.3 pp 5.72 +67% 78 18.0 1.0%
PCTY NASDAQ
Paylocity Holding		 9.24B 72 0.8 87 89 52% 21.5% 12.9% 4.6% 0.26 36.8% 74 6 13.2 pp 5.37 +60% 82 25.5 -
GEO NYSE
Geo		 3.63B 71 0.7 89 89 93% -10.3% 65.2% 55.1% 0.32 47.4% 78 8 4.5 pp 2.10 +75% 63 16.0 -
AMGN NASDAQ
Amgen		 242B 69 0.6 89 91 79% 15.6% 59.0% 54.2% 0.13 26.9% 69 6 9.3 pp 5.81 +23% 88 16.7 2.7%
KARO NASDAQ
Karooooo		 1.94B 69 0.5 84 82 64% 2.3% 47.9% 33.3% 0.91 52.5% 88 7 15.2 pp 0.13 +17% 87 26.0 2.4%
MILDEF ST
MilDef		 1.09B 68 0.6 92 95 89% 9.1% 51.4% 22.6% -0.25 53.1% 76 7 10.9 pp 0.73 +40% 90 22.8 0.4%
CSX NASDAQ
CSX		 95.7B 68 1.1 83 90 74% 2.5% 47.6% 35.8% 0.65 21.5% 72 8 3.1 pp 3.57 +15% 83 21.2 1.3%
DGX NYSE
Quest Diagnostics		 26.9B 68 1.0 83 86 97% 4.5% 40.1% 35.4% -0.09 22.1% 80 7 4.0 pp 3.84 +24% 58 19.5 1.7%
REGN NASDAQ
Regeneron Pharmaceuticals		 84.3B 68 -0.1 77 76 85% 17.1% 24.9% 29.8% 0.59 31.5% 88 5 4.9 pp 5.89 +42% 85 14.5 0.5%
PNDORA CO
Pandora		 9.36B 67 0.8 88 96 100% 3.4% -1.6% -8.9% 0.87 32.1% 74 5 21.4 pp 3.50 +6% 94 18.6 4.9%
SOON SW
Sonova H		 20.2B 67 1.3 91 95 83% 27.0% 29.7% 20.7% 0.56 23.0% 88 7 6.3 pp - +35% 88 21.1 2.5%
IA NASDAQ
Innovative Aerosystems		 357M 67 1.1 86 87 78% 8.3% 104.9% 77.7% 2.05 38.3% 82 7 5.4 pp - +17% 91 9.5 -
EDRY NASDAQ
EuroDry		 136M 66 1.0 99 98 82% 88.9% 279.7% 259.4% 1.03 69.0% 76 6 2.3 pp 0.13 +57% 50 8.4 -
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.