14 Stocks Poised for Gains Now as Market Breaks to New Highs
Using a proprietary, numbers-over-narrative approach, we've selected the stocks with growth ahead.
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What I’m about to share may sound like heresy to investors who believe a compelling story is the only way to pick stocks. But today, I’m laying out a strategy that I’ve honed over years of investing — one that’s uncomfortable for many but has proven highly effective.
You can buy companies in the right market conditions based purely on quantitative metrics, without relying on any narrative. I’ll be sharing charts to illustrate this approach, so let’s dive in.
In a market breaking to new highs, you can identify leadership by focusing on companies also hitting new highs — those emerging from bases, not yet extended, and boasting strong fundamental characteristics. My method hinges on three balanced pillars: quality, valuation and technicals. Quality reflects the company’s structural integrity. Valuation considers what you’re paying relative to assets, earnings, growth or sales. Technicals capture the stock’s momentum and historical price patterns.
I use an acronym, TORQ, to frame this approach:
- Trend: What’s the prevailing market or stock trend?
- Overbought/Oversold: Is the stock extended or poised for a move?
- Relative Performance: How does the stock’s strength compare to the market?
- Quality Patterns: Are there behavioral shifts in price action signaling a breakout?
This methodology has nothing to do with a company’s products, services, management or traditional fundamental narratives. Instead, it’s about numbers —quantitative discipline over storytelling.
Screening for Quantitative Leaders
To demonstrate, I screened the Russell 1000 for companies trading within 5% of their 52-week highs. Then, I applied my proprietary quantitative factor models, which assign composite scores based on technical momentum and fundamental strength. The result is a list of stocks displaying what I call "quantitative leadership." These companies meet TORQ criteria, showing strong trends, favorable overbought/oversold conditions, superior relative performance and quality price patterns.
Here’s the list:
AVGO (Broadcom Inc.)
BKNG (Booking Holdings Inc.)
COF (Capital One Financial Corp.)
EHC (Encompass Health Corp.)
EQH (Equitable Holdings Inc.)
FOXA (Fox Corp.)
JPM (JPMorgan Chase & Co.)
NRG (NRG Energy Inc.)
PLNT (Planet Fitness Inc.)
RCL (Royal Caribbean Cruises Ltd.)
SEIC (SEI Investments Co.)
TDG (TransDigm Group Inc.)
TT (Trane Technologies Plc.)
VRSN (VeriSign Inc.)
Note: Charts accompanying this article will highlight the technical setups and quantitative metrics for these stocks.
These stocks aren’t selected for their stories — I haven’t even tried to decode their narratives. They’re here because they meet rigorous quantitative criteria. Each has recently emerged from a corrective base, a key technical theme and demonstrates superior profitability, returns on invested capital, balance sheet health and growth compared to peers and the broader market.
Why This Matters
For fundamentally-inclined investors, this list offers a starting point. Based on historical patterns and my experience, some of these names could become top performers in the months ahead. At the very least, this approach increases your probability of success by focusing on companies with a winning combination of technical and fundamental strength.
I’m not making a fundamental case for these stocks. This is a numbers-over-narrative exercise to prove a point: disciplined quantitative analysis can enhance your investing process. By prioritizing data — momentum, quality and valuation — you can sidestep the emotional pull of stories and improve your outcomes.
Your Turn
What do you think? Have you used a quantitative approach to stock selection, or do you lean on narratives? Drop your comments below, and let’s discuss. For now, keep an eye on these names — they’re worth investors’ time as potential leaders in this market.
Disclaimer: This article is for informational purposes only and not a recommendation to buy or sell any securities. Always conduct your own research before investing.
Louis Llanes, CFA CMT is a contributor to TheStreet Pro and an experienced investor and wealth advisor. Follow along for more insights on disciplined investing.
