MarketGrader Growth Compounders – March 29, 2024
The following table shows five of the top MarketGrader stocks for this week, selected from MarketGrader’s prestigious Growth Compounders list. Read below for a full description.
| Company | Ticker | MG Overall Grade | 5-Year Shareholders’ Equity Growth | Market Cap |
| Yiren Digital | $YRD | 78.0 | 65% | $400M |
| NetEase | $NTES | 76.6 | 166% | $65B |
| Axos Financial | $AX | 75.0 | 109% | $3B |
| ExlService | $EXLS | 74.6 | 44% | $5B |
| FS Bancorp | $FSBW | 74.3 | 47% | $254M |
MarketGrader Has Been a Market Beater
If you’ve been following us at BBAE, then you may already know the power of MarketGrader, an equity research firm with a proprietary stock selection model.
Over the past 10 years, 90% of MarketGrader’s indexes have beaten their benchmarks.
How special is that? For comparison, Dow Jones Research found that 94% of US large cap fund managers fail to beat the S&P 500 over any given 20-year period.
So though the time periods aren’t exactly the same, if MarketGrader were an active manager, “he” or “she” would be on track to rank in the top few percent – one of the best asset managers in the country.
How MarketGrader Works
MarketGrader’s model uses 24 factors – common-sense fundamental factors, and most of which are well-proven by academic research – to rate nearly every stock in the world (the MarketGrader website rates more than 40,000).
A multi-factor strategy is perfect for creating indexes, and many investors follow MarketGrader’s. (MarketGrader powers the Barron’s 400 Index as well.)
BBAE offers low-minimum managed accounts that follow three exclusive-for-BBAE portfolios that MarketGrader created. (The portfolios are relatively new, but you can see their test results here.)
What Are MarketGrader’s Growth Compounders?
For this weekly feature, we’re bringing you MarketGrader’s individual stock ideas.
Stocks on the list above are among MarketGrader’s Growth Compounders – MarketGrader’s favorite list.
While we can’t reveal trade secrets from MarketGrader’s algorithm, we can broadly say that to qualify as a Growth Compounder, a company must:
- Have been covered by MarketGrader for at least five years
- Been a frequent or ongoing member of at least several MarketGrader indexes
- Have a high MarketGrader Overall Grade
- Have had an above-average Overall Grade for their entire coverage history
- Register significantly more months with a Buy or Hold rating from MarketGrader than a Sell rating
The bar is relatively high, in other words, and MarketGrader considers Growth Compounders to be high-quality companies, or at least high-quality stocks.
Your Own Research
These stocks are a result of MarketGrader’s algorithm. Historically, that algorithm has delivered good performance, but it principally captures statistical properties across large numbers of stocks (such as in the three MarketGrader portfolios that BBAE offers). In other words, we don’t present these stocks as recommendations, and please do your own research before deciding if a stock is right for your portfolio.
Disclaimer: This article is for informational purposes only and is neither investment advice nor a solicitation to buy or sell securities. All investment involves inherent risks, including the total loss of principal, and past performance is not a guarantee of future results. Always conduct thorough research or consult with a financial expert before making any investment decisions. Neither the author nor BBAE has a position in any investment mentioned.
