YWR Global Factor Model (for paid subscribers)

This is a proprietary ranking system of over 3,000 global stocks based on earnings momentum, valuation and price momentum. I publish the updated database once a month.

The ranking system is searching for companies where earnings estimates are trending up, they are attractively valued relative to their sector and the stock price is also acting well relative to the overall market. I provide scores for each of the three attributes, but in the total score earnings momentum has the biggest weight followed by valuation and finally price momentum.

How to use the Global Factor Model

The factor model helps with two challenges.

First, it shows which stocks in the world have the strongest earnings momentum, ie are exceeding analyst’s expectations, which is usually a big driver of stock performance. By looking at the leading stocks and their industries it gives an indication of industry earnings trends.

Second, it identifies interesting stock ideas for further research and investment. Usually, these are not stocks which are the top of the news, so they can be interesting and contrarian. They key though is to do your own work to understand why the company is doing well and whether it will continue. The factor model is just a database and it can’t predict the future.

Here are the past monthly databases:

This post is for paid subscribers