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I trade based for valuations. Does NexGen include valuation analysis?

By Matt McCallAug 25, 2017


That’s a great question, and my stock selection strategy is something we’ll talk about often. One of the first things I look at when analyzing potential investment opportunities (whether for the long or short term) is the company’s fundamentals. Within those fundamentals, I analyze growth of earnings and revenue as well as the PEG (price-to-earnings-to-growth) ratio, which gives us valuation. So it does come into play in my research.

I will say that the fundamentals are not as important when you’re looking for a short-term stock to trade. However, we will still look at them because they help us stack as many factors in our favor as possible. Just because a chart is pointing higher doesn’t mean that the stock is strong on its own. The company could be falling apart at the seams, and that’s exactly what the fundamentals help to tell us.

The great thing about my NexGen system is that it takes a variety of stock analysis processes and combines them into one proven strategy that works. By looking at the fundamentals, technicals and what I like to call the intangibles (the themes and catalysts that are changing the market), we are using every tool available to us to make the best possible investing decisions.

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