With January about to conclude, we’ve come off last year’s bearish trend, and seen solid gains over the first month of the year – 6% on the S&P 500, 11% on the tech-oriented NASDAQ – but that doesn’t mean we’re out of the woods. Inflation remains high, the Fed is still raising interest rates, and there’s still plenty of uncertainty about the course of the Russian war in Ukraine, and what China will do as it moves away from COVID lockdowns.
So what to do, to find the right stocks for gains? The market headwinds, and sheer volume of data naturally generated by the actions of thousands of traders investing in thousands of equities, has created an information dump that’s just too big to fully understand. The best professional analysts tend to focus on a single sector and develop an expertise – and that takes years. The retail investor hasn’t got that kind of time to spare.
But we live in the digital age, and information technology can encompass what the human mind cannot. TipRanks’ Smart Score algorithm fills this need, for data collection and collation, and goes another step further – it rates every stock by 8 factors known to correlate with future outperformance, and then distills those ratings into a single score, based on the familiar scale of 1 to 10, so that investors can see at a glance the main chance for any equity.
Using the Smart Score tool, we’ve looked up two stocks that show the Perfect 10 score. They make an interesting pair to examine; both feature Strong Buy consensus ratings and show how a stock can earn a perfect 10 Smart Score without perfect scores on every factor. Here are the details, and commentary from the Street’s analysts.
Leonardo DRS (DRS)
The first ‘Perfect 10’ stock we’re looking at is Leonardo DRS, a company with a 50-year history of success in the defense industry. Leonardo has important contracts with US Army, with a recent $579 million contract win to provide advanced thermal weapon sights and another contract for $39.5 million to provide forward-looking infrared sighting systems, and with the US Navy, for…