If you're starting out, we suggest using our preconfigured templates. Or, if you'd prefer, see our guide on, ''Building Your Own Scoring Model' to create one from scratch.
To start, use the left navigation pane, navigate to the Fundamental Scoring category, and click on the option' + New Scoring Model.' This will take you to a new screen.
From here, you can select the model that best suits your needs.
Scoring Model Template Types
- Dividend: Suitable for investors focusing on companies with stable, increasing dividend payments and sustainable payout ratios. It's important to understand that although these companies typically generate hefty cash flows, they probably won't be able to beat the benchmark in terms of pure stock price returns.
- Growth at a Reasonable Price: This strategy is best for investors. It focuses on companies that have been and (probably) will continue increasing their revenues and profits in the following years (this assumption is based on revenues and EPS forecasts published by analysts). Moreover, you might also want to buy these companies only when they are not overvalued, hence the name "Growth at a Reasonable Price." This is probably the best strategy for most investors and probably the one that can help you beat the benchmark with only slightly higher volatility and drawdowns compared to the S&P 500.
- Hyper Growth: If your focus is on companies growing at the highest possible rate, no matter what, this is a good strategy for you. In this case, you are not concerned with current valuations as long as the company's predicted growth is very high. Remember that this strategy is hazardous since it doesn't consider any fundamental or valuation criteria.
- Value: This strategy suits investors looking for a good buying opportunity (cheap stocks), predominantly among mature companies with established industry positions. On the one hand, this strategy will help you find and evaluate cheap companies, but on the other hand, a cheap company often results in a poor-performing company. Hence, you might want to use this strategy as a timing signal for buying rather than a set of criteria that will help you find the best stocks on the market.
Which scoring model should I choose?
Selecting a scoring model depends on your needs, and we can't recommend the "right" one. You may consider using the Growth at a Reasonable Price model. It's copied to your account with predefined categories and rules, but you can modify them as needed. If something goes wrong, you can reset it to default settings by adding the model again.
Getting Started with Your Model
After adding a model, you won't see any companies until you feed it with data. You can add companies manually individually or use a screener to add multiple companies simultaneously. The screener helps narrow down stocks based on specific criteria, making it efficient for adding many companies to your model. Screener section.