Making sense of the stock markets is a challenge – and a straightforward task. The collective information generated tens of thousands of stocks and traders gives investors everything they need to know – but sorting through that mountain of raw data presents a whole nother issue.
TipRanks makes it easy. The platform and data tools let investors put some order on the data vortex, bringing up the latest scoop on more than 9,600 stocks and 7,700 Wall Street analysts. For investors seeking a more refined tool, there is the Smart Score, a valuable data tool that aggregates 8 separate key factors for every stock, factors which are known to correlate with future returns, and uses them to create a reified score on a scale of 1 to 10. A stock with a ‘Perfect 10’ scores high on most of the key factors – although a stock doesn’t need to score high on every factor to get a 10.
The Smart Score, and especially the 10s, can guide investors toward the stocks that are primed for gains. That’s a vital advantage, especially in a challenging market environment like the last six weeks have shown us.
With this in mind, we’ve pulled up two stocks with a ‘Perfect 10’ from the Smart Score, which have outperformed the broader market this year. Let’s take a closer look.
Schlumberger Limited (SLB)
We’ll start with a company that combines the strengths of two major industries. Schlumberger is an oil field services company, a firm involved the drilling, well completion, and oil production of hydrocarbon business. These are tasks that the major oil companies – with their own focus on exploration – sometimes cannot do well. By specializing, Schlumberger can fill a vital niche in a vital industry.
A combination of factors, including the corona pandemic crisis and the Biden Administration’s policy de-emphasis on fossil fuels, has put serious headwinds in front of Schlumberger. A macro look at revenue tells the story. The top line for the full year 2019 came in at $33 billion; that was down to $23.6 billion in 2020, and $22.9 billion in 2021.
At the same time,…