What are we looking for?
Top-ranked U.S. stocks based on Trading Central’s proprietary quantitative model – the same methodology that underpins the Trading Central Quant U.S. 50 index ETF, listed on the Toronto Stock Exchange.
The S&P 500 has rallied approximately 18 per cent since the end of March, pushing to record highs, driven largely by strength in technology and artificial intelligence-related names. Against this backdrop, a systematic quantitative approach offers a disciplined way to cut through market noise and identify stocks where the model’s signals and price behaviour are pointing in the same direction.
The screen
Using Trading Central Strategy Builder, we screened for U.S.-listed stocks with a market capitalization of at least US$5-billion, a TC Quantamental Rating of 55 or higher, and earnings-per-share growth of at least 10 per cent in the most recent quarter.
The TC Quantamental Rating is a proprietary stock-ranking system covering more than 50,000 equities worldwide, scoring each on a scale of 0 to 100 – where 100 represents the most bullish outlook and 0 the most bearish. The model evaluates companies across a 20-factor framework spanning valuation, growth, quality, price momentum and income metrics.
We have also included 52-week and year-to-date price performance, as of Thursday market close, for your reference.
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More about Trading Central
Trading Central is a global leader in financial market research and investment analytics for retail online brokers and institutions. Its product suite provides actionable trading ideas based on technical and fundamental research covering stocks, exchange-traded funds, indexes, forex, options and commodities. Strategy Builder, our stock screener is available through leading retail brokers in Canada and worldwide.
What we found
Our screen returned 145 U.S.-listed stocks that met all criteria; the top 15 by TC Quantamental Rating are presented in the table below.
Topping our list is SanDisk Corp. SNDK-Q, a leading manufacturer of data storage devices. With a TC Quantamental Rating of 61, the company stands out for its extraordinary price momentum and earnings delivery, posting EPS growth of 615 per cent last quarter alongside a return on equity of 39 per cent, reflecting highly efficient use of capital. The stock has surged around 4,586 per cent over the past year and 820 per cent year-to-date, making it the top-performing stock on our list by a considerable margin.
Also in the semiconductor space is Credo Technology Group Holding Ltd. CRDO-Q, a semiconductor company specializing in high-speed connectivity equipment for data centres and artificial intelligence infrastructure. With a TC Quantamental Rating of 66, Credo stands out for its exceptional earnings momentum, posting EPS growth of 345 per cent last quarter alongside a return on equity of 34 per cent, reflecting strong operational efficiency. The stock has surged 217 per cent over the past year and 89 per cent year-to-date.
Also making the list is Teck Resources Ltd. TECK-N, a Canadian diversified mining company with major exposure to copper, zinc, and steel-making coal. With a TC Quantamental Rating of 67, Teck stands out for its strong earnings recovery, posting EPS growth of 129 per cent last quarter alongside a P/E of 24.6 times, a reasonable valuation relative to its growth trajectory. The stock has gained 68 per cent over the past year and 34 per cent year-to-date, benefiting from a commodity cycle supported by electrification and infrastructure demand.
Trading Central Strategy Builder offers a back-testing feature that allows users to assess the historical performance of an investment strategy. Utilizing a five-year historical period with quarterly rebalancing, the described screen generated an annualized total return of 18 per cent, outperforming the S&P 500 index, which achieved a 13-per-cent annualized total return over the same period.
The investment ideas presented here are for information only. They do not constitute advice or a recommendation by Trading Central in respect of the investment in financial instruments. Investors should conduct further research before investing.
Gary Christie is head of North American research at Trading Central in Ottawa.