Black Friday Deals: How to Identify Stocks Trading on a Discount
As we celebrate Black Friday, let's try and create a shortlist of high-quality and discounted stocks using InvestingPro's stock scanner. For this, we've chosen to filter stocks with the following characteristics:
We can see that the list includes 14 names (out of more than 160,000 in the database) that meet our criteria for discounted stocks. Obviously, this is only a starting point, but certainly a good start on which we can pursue further analysis.
For a more in-depth analysis, we can explore the technical charts to gauge the current trend. This allows us to identify stocks that are well-positioned from a fundamental and technical perspective.
A straightforward method involves incorporating a 30-period weekly moving average and assessing whether prices are above or below it.
We could filter further to see which of these stocks trade at a P/E ratio that is not excessive (e.g., between 6 and 17).
An additional element of evaluation could be sector analysis based these two factors:
All of these elements can help refine our shortlist further and hone in on our final buys. Once this groundwork is completed, the crucial phase is money management.
Determining the portfolio's weight, defining entry and exit strategies, and devising plans to navigate through various scenarios become paramount considerations once the stocks are chosen.
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