Stock picks of the week: 5 stocks with consistent score improvement and upside potential of up to 34%


Synopsis

It might be a bit early to say, but there are indications that bulls might take some rest, but surely there are signs that some profit booking is already underway in the market. Unlike the last few months, where market breadth was a stand out feature, in the last few sessions even that has come under pressure. For investors who are looking to increase their exposure to stocks, it would be better to focus on fundamentals and if there is any improvement in them which has made the overall score go up in the last one month then have a look at those stocks. These selected stocks depict a strong upward trajectory in their overall average score which is based on five key pillars i.e. earnings, fundamentals, relative valuation, risk and price momentum. This implies that there has been a significant improvement in their market outlook in the given time frame.

While the bulls continue to push valuations from fairly valued to overpriced territory, as an investor it would be better to focus on fundamentals and continue to apply more filters while buying stocks. First have a look at what is happening in the underlying business. If there is any improvement in the business, then only look at that stock. Just because the stock price is moving upward that does not mean that the business is also improving.

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