Most stock market investors are focused on individual stocks. That is, they have their list of “favorite” stocks and they track them once in a while to notice certain trends and see how the company’s stock price is affected by its performance. Then, it is customary to calculate certain financial ratios such as Price-Earnings Ratio, Price-Sales Ratio and others, to justify financial decisions such as investing or selling certain stocks.
More sophisticated investors have found that sometimes, certain market segments outperform the others, and it is therefore important to find a way to zero in on these profitable market segments, and then zero in on the individual stocks that are worthwhile within each market segment.
This article explains how to perform this kind of analysis using Trading Lever, the free top-down stock screening tool. It is a sophisticated stock screener that can screen stocks by industry, sector, price-earnings-ratio and other financial metrics, and display the results in detailed stock graphs that show any property selected by the user (such as PEG ratio, PE ratios, revenue, earnings, or any other stock metrics).
On the outlook, Trading Lever provides an overview of all market segments along with the possibility to display a graph that shows the stock price behavior for the specific segment.
On the left side is the price change by segment for the past 3 months. Let’s look on that one in a little more detail:
As we can see, the Consumer Durables segment had the greatest growth in the last 3 months. It is possible to expand on this hierarchy using the levels defined at the top. In this example, it is possible to expand by Sector -> Industry -> MarketCap -> Individual stock.
Let’s expand the Consumer Durables to screen only stocks in that sector:
We can see that while Consumer Durables grew as a whole, some of the industries below it had great growth as well, while others, such as Specialty Chemicals, dropped as a stock group.
Let’s expand the Electrical Products industry and then the Micro-Cap market cap group, to see where the action is.
We can see that overall there are 2 stocks in the micro cap category that produced the growth we saw.
These are PPSI – Pioneer Power Solutions and BLNKW – Blink Charging Co.
Is PPSI a good investment?
PPSI manufactures and sells electrical transmission equipment. It has not seen great growth in revenue in the past year, yet the stock price rallied. However, the current price is still less than 50% of the price it was traded at before the Coronvirus pandemic. Therefore, there’s still ample space of growth, assuming things are going to return to normal.
Is BLNKW a good investment?
BLNKW – Blink Charging Co, is a highly unprofitable (as of now) company that produces electrical vehicle (EV) charging equipment and networked EV charging stations in the US. As it is highly unprofitable, this one is only for the speculative investor. Projected that the electric vehicle industry is going to enjoy tremendous grow in the next decade, it may also elevate the value of many companies, such as BLNKW, that are taking part in this revolution. Whether or not BLNKW will enjoy the fruits of the growth in the electrical vehicle industry is up to debate, as this space is becoming hot, with Tesla (TSLA) especially enjoying very expensive valuations.
It is easy to use the Trading Lever free stock charting and screening software online. It makes it easy to do stocks charting of any stock or stock group (such as industry or sector groups). We recommend anyone to try Trading Lever and use it for free, from the beginner analyst to sophisticated investors. See link below.
Do It Yourself
This analysis has been performed using Trading Lever by Leverium. Trading Lever is a free tool to demonstrate the capabilities of Leverium, a financial planning tool. All use of Trading Lever on up-to-date stock data is 100% free.
No investment advice: the content provided is for informational purposes only. You should not use any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained on our website constitutes a solicitation, recommendation, endorsement, or offer by us or by any third party service provider to buy or sell any securities or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction.
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