Recent months have seen major indices fluctuate as critical events impact the markets. With inflation concerns, a new meme stocks frenzy, and AI-fueled rallies, the increasing volatility in the US stock market suggests it's ideal for investors to focus on high-quality companies with a history of outperformance.
In this edition of Trading Central’s Fundamental Report, we examine four US-listed stocks that exhibit these characteristics. Using TC’s Strategy Builder and Fundamental Insight tools, we screened for companies with a Trading Central Quantamental Rating (TCQR) of 70+ and TC Quality Factor Ratings of at least 70, indicating very strong fundamentals relative to industry peers. Additionally, we focused on stocks with double-digit outperformance year-to-date and in the past month, with a minimum price change of 10% in both categories.
THC US
Tenet Healthcare, which operates hospitals and healthcare facilities in the U.S., tops our screen with the joint-highest TCQR at 84 and the highest Quality rating, which sits at 96. Year-to-date, the stock has surged 77.9%, partially driven by positive investor reception to its strategic growth through mergers, acquisitions, and targeted hospital sales.
GDDY US
GoDaddy, a 19.48 billion dollar provider of domain registration and web hosting services, boasts the second-highest Quality rating in our list at 95, with an impressive TCQR of 74. The company’s strong market position is one of the many factors that has contributed to its impressive performance.
BWLP US
BW LPG, the world's leading owner and operator of LPG carriers, has experienced a notable increase of 45.2% over the past 4 weeks. With TCQR and Quality scores of 84 and 80, respectively, BW LPG continues to benefit from increased global demand for liquefied petroleum gas, particularly in emerging markets.
KGC US
Kinross Gold Corp, a $9.83 billion gold mining and exploration company, has achieved a commendable performance in 2024, with a 37.3% increase in share value. Despite having the lowest TCQR and Quality rating on our list, both at 74, Kinross' latest successful projects and rising gold prices have driven its recent success.
Using a five-year historical period with quarterly rebalancing, the screen described had a 28 percent annualized return compared with 13 percent for the S&P 500 index.
