Find Top Rated Cheap Stocks In Less Than 15 Minutes a Day Using the IBD
About the Investor's Business Daily (IBD) The Investor's Business Daily is a daily investing newspaper read by many stock market professionals, and mentioned in many bestselling investment books (such as Jason Kelly's "The Neatest Little Guide to Stock Market Investing").
IBD provides detailed information about stocks; including concise statistics on a company's earnings, stock price performance, and other criteria to help investors find winning stocks.
Using IBD to find Quality Cheap Stocks in less than 15 minutess a day
A simple 4 steps procedure for finding top quality cheap stocks.
I've successfully used this strategy to find various winning stocks.
However, please note that stocks trading under $10 tend to have lower volume, which makes their stock price more volatile.
Therefore, please exercise caution when investing in such cheap stocks.
Personally, I advise allocating only 10% of your account to investing in cheap stocks.
** Data Definition (taken from IBD Help Site): Earnings Per Share (EPS) Rating An exclusive rating found in Investor's Business Daily.
Stocks are rated on a 1 to 99 scale (with 99 being best) comparing a company's earnings per share growth on both a current and annual basis with all other publicly traded companies in the William O'Neil + Co database.
Stocks with EPS Ratings of 80 or above have outperformed 80% of all publicly traded companies in earnings.
The EPS Rating calculation combines the company's most recent two quarters of earnings-per-share growth, with its three-year to five-year annual growth rate.
Relative Price Strength (RS) Rating This is another exclusive rating in Investor's Business Daily.
It measures each stock's price performance over a twelve-month period, compared to all other stocks.
Accumulation/Distribution (Acc/Dis) Rating The Acc/Dis rating tracks the relative degree of institutional buying (accumulation) and selling (distribution) in a particular stock over the last 13 weeks.
Updated daily, stocks are rated on an A+ to E scale.
A = Heavy buying B = Moderate buying C = Equal amount of buying and selling D = Moderate selling E = Heavy selling SmartSelect Composite Rating The IBD SmartSelect Composite Rating combines 5 proprietary IBD Ratings into one easy-to-use rating.
More weight is placed on EPS and RS Rating, and the stock's percent off its 52-week high is also included in the formula.
Results are then compared to all other companies, and each company is assigned a rating from 1-99 with 99 being the best.
A 90 rating means that the stock has outperformed 90% of all other stocks in terms of its combined SmartSelect Ratings.
IBD provides detailed information about stocks; including concise statistics on a company's earnings, stock price performance, and other criteria to help investors find winning stocks.
Using IBD to find Quality Cheap Stocks in less than 15 minutess a day
- Log in to IBD and click on eIBD Digital Edition.
Follow the on-screen instructions until you reach the first page of the newspaper.
(This step is only necessary for subscribers of the Digital Edition) - Look for the section "Making Money".
- Select "Top Ranked Low Price Stocks".
- Look through the stock and find stocks that satisfies the following criteria**:
A simple 4 steps procedure for finding top quality cheap stocks.
I've successfully used this strategy to find various winning stocks.
However, please note that stocks trading under $10 tend to have lower volume, which makes their stock price more volatile.
Therefore, please exercise caution when investing in such cheap stocks.
Personally, I advise allocating only 10% of your account to investing in cheap stocks.
** Data Definition (taken from IBD Help Site): Earnings Per Share (EPS) Rating An exclusive rating found in Investor's Business Daily.
Stocks are rated on a 1 to 99 scale (with 99 being best) comparing a company's earnings per share growth on both a current and annual basis with all other publicly traded companies in the William O'Neil + Co database.
Stocks with EPS Ratings of 80 or above have outperformed 80% of all publicly traded companies in earnings.
The EPS Rating calculation combines the company's most recent two quarters of earnings-per-share growth, with its three-year to five-year annual growth rate.
Relative Price Strength (RS) Rating This is another exclusive rating in Investor's Business Daily.
It measures each stock's price performance over a twelve-month period, compared to all other stocks.
Accumulation/Distribution (Acc/Dis) Rating The Acc/Dis rating tracks the relative degree of institutional buying (accumulation) and selling (distribution) in a particular stock over the last 13 weeks.
Updated daily, stocks are rated on an A+ to E scale.
A = Heavy buying B = Moderate buying C = Equal amount of buying and selling D = Moderate selling E = Heavy selling SmartSelect Composite Rating The IBD SmartSelect Composite Rating combines 5 proprietary IBD Ratings into one easy-to-use rating.
More weight is placed on EPS and RS Rating, and the stock's percent off its 52-week high is also included in the formula.
Results are then compared to all other companies, and each company is assigned a rating from 1-99 with 99 being the best.
A 90 rating means that the stock has outperformed 90% of all other stocks in terms of its combined SmartSelect Ratings.
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