What Do These Stocks Have in Common?

Step 1: ONLY Top Analysts

As you can imagine… not all analysts are created equal.

That is why we closely monitor the performance of stock analyst recommendations.

Meaning that we only want to pay attention to those analysts making the most profitable picks… and ignore the rest.

Step 2: Zen Score

This is the stringent due diligence process that we perfected at WallStreetZen.

Each stock is put through a gauntlet of 38 tests to appreciate the true fundamental merit of each stock. Important attributes like:

And 33 more due diligence checks covering everything from Valuation to Financials to Dividend to Forecast to Performance.

There are no stocks that clear all 38 of these hurdles. But the more hurdles they clear… the more fundamentally sound the company truly is… and the more likely the stock will outperform in the future.

This comes back to the sound advice from famed investor, Ben Graham (Warren Buffet's mentor and the father of value investing). He stated that in the short term, the market is a voting machine, but in the long term, it is a weighing machine.

In the short term, the market is a voting machine, but in the long term, it is a weighing machine.

Ben Graham

Warren Buffet's mentor and the father of value investing

In other words, emotion and psychology may cause Mr. Market to overreact or underreact to information in the short term, thus affecting the share price, but that in the long-term, the value of a company is determined by its fundamental strengths and weaknesses as a business.

If you share this philosophy and you believe that identifying fundamentally strong yet undervalued companies is key to long-term investing success, then this second step with the Zen Score can point the way to more winning stocks.

Step 3: Evaluate Upside Potential

We are trying to find long term winners. Like the parade of 100% gains we discovered when narrowing down to the top 25% of Wall Street analysts.

There are 3 key ingredients to unlocking this exceptional upside potential.

Gladly, years of academic research has pointed the way to the unique markers of stocks that are more likely to beat earnings in the future and enjoy a soaring stock price.

Most important of which is the consistency of growth in the past. Not just earnings growth, but revenue, profit margin and cash flow growth as well.

No… you don't need to be a Certified Public Accountant to discover these stocks.

We have perfected the screening process that greatly improves our odds of locking onto many of the most attractive long term winners.

Step 4: Hand Pick the Best of the Best

Most of the previous steps are quantitative in nature.

Meaning where we have trained our computer models on narrowing down from the 2,771 Buy rated stocks from Wall Street to a much smaller and attractive pool of outperforming picks.

But even at this stage there are still too many stocks to place into our portfolio.

This is where there is no substitute for experience… like the 44 years of successful investing experience we get from famed investor, Steve Reitmeister, making the final selections.

Over those 44 years Steve (aka Reity) has seen every kind of market condition. Sure it's easy to brag about the ample gains generated during the bullish years where everyone saw their portfolio swell.

Rather it is the difficult times that provide the best lessons learned. To see them coming at the earliest possible stages to weather the storm.

And over the last 4 decades Steve has not just seen your run of the mill recessions that beget bear markets.

But has also endured the popping tech bubble in 2000 that led to a three year bear market. (And how he took advantage of those times with 2 extraordinary stock picks… more about that in a moment)

Or the tremendous lessons learned from the Financial Crisis and Great Recession periods of 2008 and 2009.

Then you have the shocking developments of the Covid crisis in 2020… with an equally surprising bounce for stocks that unfolded just 3 weeks later.

The point is that no matter what Mr. Market throws our way… Reity will know how to respond.

Likely you know Steve from his nearly 20 years as Executive Vice President, leading the charge for Zacks.com… one of the largest and most respected investment websites covering the US market.

The specialty of Zacks was following the lead of Wall Street analysts to uncover the most profitable stock picks.

Thus, it was great timing for Steve to join Zacks in 1999 just as the tech bubble was bursting. This led him on a buying spree to sweep up the best of these stellar growth companies at extremely discounted prices in 2001 like:

Amazon bought @ 43 cents (split adjusted). Gladly still own the shares today at $188.70 pointing to a lifetime return of 43,884%.

Same goes for Priceline (now Booking Holdings) bought @ $14.62 and now close to $3,600 for a welcome 24,613% gain.

Of course, we are not pretending this will be the result from all the picks.

There will be losers sprinkled in over time. That is where the 44 years of experience comes into play helping to spot the weaklings as early as possible to cull them from the herd.

Beyond Steve's hand selected stocks, he will also provide the all important WHY behind their selection.

First, his commentary will clearly help you appreciate the current state of the market. Bull… bear… or anything between.

Next providing a decisive trading plan of what sectors are hot… and which are not. Leading to an overweighting of the groups that are most attractive.

This leads to a portfolio of 20-30 of the most attractive long term stocks with that right combination of:

Then Steve will spell out specifically WHY these are the best stocks to buy with complete analysis of the companies' growth prospects and exciting upside potential.

If this appeals to you… and it should… then please read on below how you can become a charter member of our brand new Zen Investor newsletter to start filling your portfolio with the best stocks for the long haul.