With market uncertainty on the rise especially after the recent market selloff, finding high-quality stocks has never been more crucial.
Investors need companies with strong financials—businesses that can not only withstand market turbulence but potentially thrive in it.
However, digging into financial statements and assessing a company’s strengths takes time and expertise. That’s where composite indicators like the Piotroski Score come in.
Developed by accounting professor Joseph Piotroski, this widely used metric evaluates nine key financial factors over multiple years to gauge a company’s overall health. A score of 9 signals a business with strong fundamentals.
In this article, we’ll walk you through how to use Investing.com’s preconfigured "Piotroski Picks" screener—a powerful tool designed to help investors quickly identify financially solid companies. Let’s dive in.
How to Access the Piotroski Picks Screener
Your first step would be to click on the “Stock Screener” button at the top of the homepage.
From there, click "Explore 20+ Screens" and navigate to the “Quality” section.
Select the “Piotroski Picks” filter to automatically screen for stocks with strong fundamentals based on the Piotroski Score.
This one-click search identifies all stocks with a perfect Piotroski Score of 9, excluding micro-caps. However, with 116 results, further refinement is needed.
To narrow the list, we’ll apply two exclusive InvestingPro tools: Fair Value and Financial Health Score. These metrics help pinpoint stocks with not just strong fundamentals but also attractive valuations and financial stability.
Let’s explore how to use these filters effectively.
Refining the List for Maximum Upside Potential
To narrow the selection, we applied two exclusive InvestingPro tools:
- Fair Value: This metric aggregates multiple valuation models to determine a stock’s true worth, indicating whether it’s overvalued or undervalued and its potential upside/downside.
- Financial Health Score: A rating (up to 5) based on key financial metrics to assess a company’s financial stability.
Final Screening Criteria: Refining the Search to Uncover the Best Piotroski Picks
To pinpoint the most promising opportunities, we applied two additional filters:
- Upside potential of at least 15% based on InvestingPro Fair Value metrics.
- Financial Health Score above 2.5/5 for added stability.
These refinements narrowed the list from 116 stocks to just 20.
Below are some compelling stocks from the full list of results, along with the metrics displayed by our screener:
- United Therapeutics Corporation (NASDAQ:UTHR) – 28% upside based on InvestingPro Fair Value. The company specializes in treatments for chronic diseases.
- Huazhu Group Ltd (NASDAQ:HTHT) – 18.5% upside. Huazhu operates a leading hotel chain in China.
- Assurant (NYSE:AIZ) – 16.3% upside. Assurant provides protection services for homes and vehicles.
If you check the list in the image above, some stocks offer even greater potential—nine have over 30% upside, with two projected to surge more than 40% based on valuation models.
With perfect Piotroski scores, strong financial health, and significant upside potential, these stocks could provide a smart way to navigate market risks without sacrificing returns.
Looking to gain access to the full list of stocks?
InvestingPro members can access this customized screen directly through this link.
Opportunities Exist in Any Market Environment
Whether markets are rising or falling, opportunities always exist for investors who know where to look. Bull markets make it easier to generate gains, but the right tools like Investing.com’s screener can help uncover strong picks even in downturns.
This screening method is just one example. Investing.com’s screener offers over 50 preconfigured searches (some exclusive to InvestingPro members).
Final Thoughts
For those aiming to outperform the market, leveraging top-tier screening tools—Piotroski Score, Fair Value, and Financial Health metrics—can provide a crucial edge.
With some stocks offering up to 46% upside potential, these picks could be worth a closer look.
You can access the screener using this link.
Check out the video below for a detailed explanation of how to use the screener:
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Disclaimer: This article is written for informational purposes only. It is not intended to encourage the purchase of assets in any way, nor does it constitute a solicitation, offer, recommendation or suggestion to invest. I would like to remind you that all assets are evaluated from multiple perspectives and are highly risky, so any investment decision and the associated risk belong to the investor. We also do not provide any investment advisory services.