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Why Monthly Rebalancing is Key to Unlocking the Power of Momentum Investing – Validea's Guru Investor Blog
Momentum investing has long been one of the most robust and persistent factors in financial markets. Decades of academic research show that stocks with strong recent performance and improving fundamentals often continue to outperform, at least for a period of time. But while the concept of momentum is straightforward, how investors implement it makes all the difference. At Validea, we’ve tracked the performance of three momentum strategies: our Momentum Investor (since 2003), the Twin Momentum… Read More
Ten High G Score Growth Stocks – Validea's Guru Investor Blog
Investing in growth companies presents unique challenges, as many fail to fulfill their promised potential. To address this issue, Professor Partha Mohanram developed the G-Score in 2005—a methodical evaluation system designed specifically for growth stocks that complements Joseph Piotroski’s F-Score used in value investing. The framework analyzes eight targeted financial indicators that are particularly relevant for growth-oriented enterprises. It measures how effectively companies allocate capital toward future expansion through investments in research and development, infrastructure… Read More
Ten Top High Shareholder Yield Stocks – Validea's Guru Investor Blog
Shareholder yield provides investors with a comprehensive view of how companies generate value for their owners in relation to market capitalization through three primary channels. Companies can distribute cash directly through dividend payments from their earnings. They can repurchase their own stock, which boosts the value of remaining shares by decreasing the total number of shares outstanding. Furthermore, paying down debt improves the company’s financial stability and increases the potential for stronger future profitability. This… Read More
Ten Top Dividend Aristocrats Passing the Strategies of Legends – Validea's Guru Investor Blog
The S&P 500 Dividend Aristocrats comprise a select group of fewer than 70 companies that have consistently increased their dividend payments for at least 25 consecutive years across various industry sectors. This remarkable track record of uninterrupted dividend increases reflects robust earnings performance sustained over multiple decades. These corporations have weathered diverse market cycles while maintaining their commitment to higher payouts, highlighting their ability to generate steady cash flows and make sound capital allocation decisions.… Read More
Ten Top Warren Buffett Stocks – Validea's Guru Investor Blog
Warren Buffett’s investment philosophy rests on a principle honed over decades: it is better to own outstanding businesses at fair prices than mediocre ones at deep discounts. He favors companies with durable competitive advantages—his well-known “economic moats”—that can deliver superior returns for many years. Instead of chasing market fads or speculation, Buffett focuses on firms run by capable leaders who consistently generate profits and cash flow, all purchased at sensible valuations. The Validea Warren Buffett… Read More
Ten Top Momentum Stocks Meeting the Tests of Investing Legends – Validea's Guru Investor Blog
Momentum Investing: Capitalizing on Sustained Market Outperformance Momentum investing capitalizes on the tendency of top-performing stocks to continue their strong trajectory. Rather than simply chasing rising prices, this strategy systematically identifies securities that demonstrate consistent outperformance relative to both industry peers and broader market indices, backed by solid fundamentals and improving business metrics. The approach exploits several interconnected market forces that sustain price momentum. Markets often require extended periods to fully incorporate positive earnings surprises,… Read More
Small Caps Are Heating Up: Can the Motley Fool Growth Strategy Keep the Momentum Going? – Validea's Guru Investor Blog
Small-cap stocks are finally showing signs of life. After trailing large caps for much of the past decade, the Russell 2000 has returned nearly 25% since the market bottomed out in April, outpacing the S&P 500. Even though it’s only been a few months, investors are beginning to ask whether the small-cap rebound has legs. With the Federal Reserve signaling that interest rate cuts could be on the horizon, small caps may have a tail… Read More
Ten Top Technology Dividend Aristocrats - August 2025 – Validea's Guru Investor Blog
Technology dividend aristocrats represent mature technology companies that have maintained a consistent pattern of increasing dividend payments for at least seven consecutive years. This classification adapts the traditional dividend aristocrat concept—which typically requires 25 years of dividend growth for S&P 500 companies—to better reflect the tech industry’s unique characteristics. Historically, technology firms prioritized reinvesting profits into innovation, expansion, and competitive positioning rather than distributing cash to shareholders, making the shorter seven-year requirement more appropriate for… Read More
Ten Top Wide Moat Stocks That Pass the Strategies of Legends – Validea's Guru Investor Blog
In today’s rapidly evolving and intensely competitive marketplace, businesses with robust economic moats present compelling opportunities for sustained investment performance. These organizations maintain durable competitive strengths—such as powerful network effects, significant customer switching barriers, superior operational efficiency, or proprietary intellectual assets—that protect their market standing and profit margins from competitive pressures. Due to these foundational advantages, moat-protected companies consistently generate superior returns on invested capital, allowing them to reinvest earnings strategically and create lasting shareholder… Read More
The Reversion of International Stocks: A 2025 Story – Validea's Guru Investor Blog
For much of the past decade, international equities have lagged behind the S&P 500. U.S. large-cap growth names – particularly the “Magnificent Seven” – captured investor attention, while many investors overlooked global markets. But 2025 is shaping up differently. According to Validea’s Country-Focused Model Portfolios, which apply the site’s consensus guru scoring system to top stocks across regions, international equities have not only caught up but in many cases surpassed U.S. benchmarks. Global Outperformance in… Read More
Buffett Inspired Model Adds Three New Stocks – Validea's Guru Investor Blog
Our Buffettology-based strategy, inspired by the principles in Buffettology and the investment approach of Warren Buffett, recently added three companies to its 10-stock model portfolio: Tractor Supply Company (TSCO), Paycom Software (PAYC), and KLA Corporation (KLAC). This model seeks businesses with durable competitive advantages, consistent earnings growth, strong returns on equity and capital, conservative balance sheets, and management teams that allocate capital effectively. Once a company passes those quality tests, the strategy evaluates whether the… Read More
Ten Top NASDAQ 100 Stocks Passing Strategies of Legends – Validea's Guru Investor Blog
The NASDAQ 100’s impressive rally has delivered substantial gains for investors. Yet viewing only the index’s overall success misses a key point: many individual stocks within the index still present attractive investment opportunities, even after the market’s significant rise. During extended bull markets, critics often dismiss entire indices as “overvalued,” but this broad-brush approach ignores important nuances. A closer look reveals that many NASDAQ 100 companies maintain strong fundamentals and offer solid investment potential, especially… Read More
Ten Top Dividend Growth Stocks – Validea's Guru Investor Blog
Dividend growth stocks can serve as a fundamental building block for creating long-term wealth, providing investors with two key advantages: reliable income and the potential for stock price gains. These investments focus on companies that consistently raise their dividend payments annually, reflecting strong financial performance, steady business operations, and a dedication to rewarding shareholders. When dividends are reinvested, compound growth can boost overall returns, while the increasing income helps maintain buying power despite inflation. Such… Read More
Ten High Insider Ownership Stocks That Pass the Tests of Legends – Validea's Guru Investor Blog
When executives and board members hold significant ownership stakes in their companies, it creates a powerful alignment of interests with outside shareholders. This shared financial exposure encourages leadership to prioritize long-term value creation over short-term earnings targets. Having substantial equity positions means management faces the same market volatility and potential gains as other investors. This shared risk typically leads to more thoughtful capital allocation and a greater emphasis on sustainable growth strategies, as leaders’ personal… Read More
Ten Top Technology Dividend Aristocrats - August 2025 – Validea's Guru Investor Blog
Technology dividend aristocrats represent mature technology companies that have maintained a consistent pattern of increasing dividend payments for at least seven consecutive years. This classification adapts the traditional dividend aristocrat concept—which typically requires 25 years of dividend growth for S&P 500 companies—to better reflect the tech industry’s unique characteristics. Historically, technology firms prioritized reinvesting profits into innovation, expansion, and competitive positioning rather than distributing cash to shareholders, making the shorter seven-year requirement more appropriate for… Read More
Ten Top Technology Stocks That Pass the Strategies of Legends – Validea's Guru Investor Blog
Over the last decade, technology stocks have delivered exceptional returns but often carry high valuations that may discourage investors focused on value. Yet Validea’s robust analytical system shows that worthwhile investment opportunities remain in this apparently overvalued sector through the application of 22 proven investment approaches developed by renowned investors such as Warren Buffett, Peter Lynch, and Martin Zweig. This disciplined methodology pinpoints technology firms that marry solid fundamentals with sensible pricing. The system targets… Read More
Ten Guru Approved High Free Cash Flow Yield Stocks – Validea's Guru Investor Blog
Free cash flow yield stands out as a fundamental metric for identifying financially strong companies. It measures how effectively a business converts its operations into cash relative to its market valuation. Companies that excel at generating cash enjoy substantial strategic advantages. They possess the financial flexibility to fund growth initiatives, strengthen their balance sheets, and return value to shareholders without relying on external financing. This self-sufficiency provides management teams with greater control over their strategic… Read More
Ten Top Ben Graham Deep Value Stocks – Validea's Guru Investor Blog
Benjamin Graham laid the groundwork for value investing through his methodical strategies for spotting undervalued securities, principles that remain relevant for modern investors. His most famous protégé, Warren Buffett, exemplifies how Graham’s teachings can generate enduring prosperity. Graham’s methodology revolves around finding solid, mature businesses selling for less than their true worth while steering clear of speculative, unproven investments. Core Investment Principles Graham favored companies with established performance histories over those dependent on optimistic projections.… Read More
Ten Top S&P 500 Stocks That Pass the Strategies of Legends – Validea's Guru Investor Blog
The S&P 500 includes over 500 companies spanning multiple sectors, featuring numerous profitable enterprises with solid fundamentals that merit serious consideration from investors. This breadth offers compelling prospects for those prepared to look beyond headline-grabbing stocks and dig deeper into their analysis. Using Validea’s extensive evaluation system that draws from 22 distinct investment approaches, we’ve pinpointed ten S&P 500 firms displaying strong foundational qualities that look especially appealing given their current market prices. Our assessment… Read More
Twin Momentum Adds Nvidia: Why the Strategy Likes the Stock – Validea's Guru Investor Blog
Validea’s top performing model, Twin Momentum, recently added Nvidia (NVDA) to its list of holdings — and for good reason. The strategy seeks stocks that combine strong fundamentals with strong price momentum, a pairing that academic research has shown can meaningfully improve the odds of outperformance. Here’s how Nvidia passed each step of the process — and why other Validea models also rate the stock highly. The Research Behind Twin Momentum The Twin Momentum approach… Read More
Ten Top Peter Lynch Stocks – Validea's Guru Investor Blog
Peter Lynch stands among the most celebrated investors in modern financial history, having transformed Fidelity’s Magellan Fund from a modest $18 million portfolio into a $14 billion powerhouse during his tenure from 1977 to 1990. Under his leadership, the fund delivered an extraordinary average annual return of 29.2%, consistently outperforming the S&P 500 and establishing Lynch as a legendary figure on Wall Street. His investment philosophy combined rigorous fundamental analysis with practical, accessible principles that… Read More
Ten Growth Stocks That Meet the Tests for Sustained Success – Validea's Guru Investor Blog
Growth stocks can be challenging for investors since many of them never realize their potential. Back in 2005, Professor Partha Mohanram created the G-Score framework—a systematic way to assess growth companies that works alongside Joseph Piotroski’s F-Score for value investing. This approach examines eight key financial metrics tailored specifically for growth-focused businesses. It evaluates how well companies direct resources toward future growth through areas like research and development, capital expenditures, and market expansion efforts. The… Read More
Ten Top High Shareholder Yield Stocks - August 2025 – Validea's Guru Investor Blog
Shareholder yield provides investors with a comprehensive view of how companies deliver value to shareholders compared to their market value through three primary channels. Companies can distribute cash directly through dividend payments from earnings. They can repurchase their own stock, which boosts the worth of existing shares by decreasing the overall number of shares outstanding. Furthermore, paying down debt improves the company’s financial health and creates potential for stronger future profitability. This comprehensive measure has… Read More
Ten Top Dividend Aristocrats - August 2025 – Validea's Guru Investor Blog
The Dividend Aristocrats are a select group of fewer than 70 S&P 500 companies that have consistently increased their dividend payments for at least 25 consecutive years across various industries. This remarkable track record of dividend increases reflects strong earnings performance spanning multiple decades. These companies have weathered different economic cycles while maintaining their commitment to growing payouts, demonstrating their ability to generate steady cash flows and make sound capital allocation decisions. While other investments… Read More
Ten Top Warren Buffett Stocks - August 2025 – Validea's Guru Investor Blog
Warren Buffett’s approach to investing rests on a core belief developed through years of experience: purchasing outstanding companies at reasonable prices beats buying mediocre firms at bargain rates. He looks for businesses with lasting competitive strengths—what he calls “economic moats”—that can maintain superior returns over many years. Instead of following market trends or chasing speculative plays, Buffett focuses on well-managed companies that produce steady earnings and dependable cash generation at rational valuations. The Validea Warren… Read More
Why the Gurus Love META – Validea's Guru Investor Blog
Meta Platforms (NASDAQ: META) just delivered a monster quarter — and it’s lighting up the scoreboards of investing models built on the principles of history’s most successful investors. A Quarter Worth Noticing META’s second-quarter results weren’t just strong — they were BIG: Building Personal Superintelligence CEO Mark Zuckerberg credited AI for the performance, stating it has “unlocked greater efficiency and gains across our ad system.” The company invested $17 billion this quarter into AI infrastructure… Read More
Ten Top Ben Graham Deep Value Stocks – Validea's Guru Investor Blog
Benjamin Graham established the foundation of value investing by developing systematic approaches to identify undervalued stocks that continue to guide investors today. Warren Buffett, his most renowned student, demonstrates how Graham’s principles can create lasting wealth. Graham’s approach centers on discovering stable, established companies trading below their intrinsic value while avoiding speculative, untested ventures. Fundamental Investment Philosophy Graham emphasized companies with proven track records rather than those relying on hopeful forecasts. This conservative approach focuses… Read More
Ten Top Wide Moat Stocks - July 2025 – Validea's Guru Investor Blog
In today’s fast-changing and highly competitive business environment, companies with strong economic moats can represent opportunities for long-term investment success. These businesses possess enduring competitive advantages—including powerful network effects, high customer switching costs, operational efficiencies, or unique intellectual property—that shield their market position and profitability from competitive threats. Because of these structural benefits, companies with solid moats consistently deliver higher returns on invested capital over time, enabling them to reinvest profits effectively and build shareholder… Read More
Ten Top High Free Cash Flow Yield Stocks - July 2025 – Validea's Guru Investor Blog
Free cash flow yield is a key metric for identifying financially strong companies during volatile market conditions. It measures how effectively a business transforms its operations into cash compared to its market value. Companies that excel at generating cash enjoy greater financial flexibility, allowing them to grow their business, strengthen their financial position, and reward shareholders without depending on outside funding. This self-sufficiency becomes particularly valuable when credit markets tighten. These investments offer defensive characteristics… Read More
Powering the Future: 5 Utility & Energy Stocks Aligned with AI and Nuclear Tailwinds – Validea's Guru Investor Blog
The energy sector is at a pivotal moment. With the Trump administration signaling strong support for the energy sector, rolling back regulations to encourage domestic production, and championing U.S. leadership in the AI revolution, the backdrop for electricity demand has possibly never looked more compelling. From powering data centers and cloud infrastructure to fueling economic growth, reliable and scalable energy sources are critical. Among the most promising areas: nuclear energy. Long viewed as a clean,… Read More
Ten Top Peter Lynch GARP Stocks – Validea's Guru Investor Blog
Validea’s investment methodology draws from Peter Lynch’s successful track record managing Fidelity’s Magelion Fund, implementing a Growth at a Reasonable Price (GARP) strategy that identifies expanding businesses with rational valuations. The framework emphasizes the PEG ratio, which measures price-to-earnings multiples against growth expectations, with readings below 1.0 potentially indicating undervalued growth opportunities. The strategy focuses on companies generating consistent 20-30% annual earnings growth while remaining cautious of overly optimistic projections that often fail to materialize.… Read More
Ten Top Momentum Stocks - July 2025 – Validea's Guru Investor Blog
Momentum investing leverages the market phenomenon where outperforming stocks tend to maintain their strong performance by focusing on securities that consistently exceed both peer companies and market benchmarks. This disciplined approach goes beyond merely following price increases, instead systematically selecting stocks that show persistent upward movement supported by robust fundamentals and strengthening business performance. This strategy takes advantage of multiple market dynamics that drive continuing price trends. When companies report better-than-expected earnings, markets often need… Read More
Ten Guru Approved NASDAQ 100 Stocks – Validea's Guru Investor Blog
The NASDAQ 100’s strong performance during this extended bull run has created significant returns for investors. However, focusing solely on the index’s overall success overlooks an important reality: numerous individual companies within the index continue to offer compelling investment value, despite the market’s broader appreciation. When markets experience prolonged growth, critics frequently label entire indices as “overpriced,” but this sweeping judgment overlooks crucial details. Through careful examination, many NASDAQ 100 constituents demonstrate solid fundamental strength… Read More
Ten Top Technology Dividend Aristocrats - July 2025 – Validea's Guru Investor Blog
Technology dividend aristocrats are established tech companies that have consistently raised their dividend payments for seven straight years or more. Unlike traditional S&P 500 dividend aristocrats, which require a 25-year track record, the tech sector uses this shorter timeframe due to its historical emphasis on reinvesting earnings into research, development, and growth initiatives rather than paying dividends. These companies demonstrate exceptional financial stewardship by balancing regular shareholder distributions with the need to stay competitive in… Read More
Ten Top Ranked Technology Stocks - July 2025 – Validea's Guru Investor Blog
Technology stocks have experienced remarkable growth over the past decade, often trading at premium valuations that can deter value-conscious investors. However, Validea’s comprehensive analytical framework demonstrates that attractive opportunities still exist within this seemingly expensive sector by applying 22 time-tested investment strategies from legendary figures like Warren Buffett, Peter Lynch, and Martin Zweig. This rigorous approach identifies technology companies that combine strong fundamental characteristics with reasonable pricing. The methodology seeks firms with the qualities that… Read More
Ten Top S&P 500 Stocks - July 2025 – Validea's Guru Investor Blog
The S&P 500 encompasses more than 500 companies across various industries, many of which operate profitable, established businesses with strong underlying fundamentals that deserve investor attention. This diversity creates attractive opportunities for those willing to conduct thorough research beyond the most popular stocks. Through Validea’s comprehensive analytical framework, which incorporates 22 different investment methodologies, we’ve identified ten S&P 500 companies with robust fundamental characteristics that appear particularly attractive at current valuations. Our analysis integrates time-tested… Read More
Ten Fundamentally Sound Dividend Growth Stocks – Validea's Guru Investor Blog
Dividend growth stocks form a cornerstone of long-term wealth building by offering investors a dual benefit: consistent income streams and opportunities for capital appreciation. These investments represent companies that systematically increase their dividend payments year after year, demonstrating robust financial health, stable business models, and a commitment to returning value to shareholders. Through dividend reinvestment, the power of compounding can substantially amplify total returns over time, while the growing income stream helps preserve purchasing power… Read More
Ten Fundamentally Sounds Stocks Insiders Like – Validea's Guru Investor Blog
Substantial leadership ownership stakes foster strong alignment between management and shareholders by creating shared financial incentives. This alignment motivates executives and board members to focus on building lasting value rather than chasing quarterly targets. When leaders maintain significant equity positions, they experience the same market risks and rewards as external investors. This exposure typically drives more prudent capital allocation decisions and emphasizes sustainable business growth, since management’s personal wealth depends on the company’s long-term performance.… Read More
Ten High G Score Growth Stocks – Validea's Guru Investor Blog
The investment landscape is in constant flux, requiring sophisticated tools to identify genuine growth opportunities. In 2005, Professor Partha Mohanram developed the G-Score methodology as a structured approach to evaluating growth companies, designed to complement Joseph Piotroski’s F-Score system for value-based investing. This framework analyzes eight specific financial indicators designed for growth-oriented enterprises. It measures how effectively companies allocate resources toward future expansion through research and development, capital investments, and market development initiatives. The system… Read More
Riding the Earnings Wave: 10 Stocks Backed by Upward Revisions – Validea's Guru Investor Blog
In investing, it’s often not just the news that matters — it’s how investors react to it. One of the most underappreciated signals in the market is when analysts raise their earnings forecasts. Research shows that the market tends to underreact to this kind of good news, creating a window of opportunity for those paying attention. That’s the premise behind the Earnings Revision Investor strategy developed by Wayne Thorp and implemented by Validea. The model,… Read More