For investors entering the stock market, the primary goal should be to outperform a benchmark index, rather than pursuing unrealistic profits. Many mutual funds struggle to beat benchmark returns, making it difficult for investors, especially those new to the market, to find winning stocks. Here, InvestingPro+ offers a breakthrough solution with its innovative “ProPicks” tool that streamlines the process of identifying market-leading stocks with accuracy and minimal guesswork.
What is ProPicks? This tool harnesses the power of AI to identify stocks poised to outperform market benchmarks. ProPicks uses a proprietary AI model to analyze historical financial data and classify stocks as underperforming, neutral, or outperforming stocks based on their correlation with various metrics. Leveraging over 25 years of comprehensive data from thousands of companies, ProPicks ensures accuracy and minimizes bias.
Selection criteria are diverse and include factors such as sector, liquidity, and market capitalization to refine the stock selection process and eliminate irrelevant options such as penny stocks. Each strategy undergoes rigorous backtesting against historical data to evaluate its performance, ensuring its robustness and practicality in real-world trading scenarios. The best part? InvestingPro+ users can access this feature at no additional charge.
Strategies offered include Tech Titans, which uses advanced AI models to analyze his IT stocks across all 500 S&P stocks. Each month, It identify the top 15 companies most likely to outperform the market. Since its inception on January 1, 2013, this strategy has generated an impressive return of 1,595.3% for him, significantly outperforming the S&P 500’s return of 251.9% over the same period. This is an outstanding outperformance of 1343.4% and an annualized return of 28.4%.
This strategy ensures that the portfolio remains dynamic by monthly rebalancing, with some stocks leaving the portfolio and others being added each month. Investors can easily replicate this portfolio into their own accounts with the insights of a personal financial advisor.
The stock universe selected for all strategies is currently focused on the US. However, other markets including India will be added soon.
