Investing is hard. Every stock has a story, and each investor has their own framework for deciding what matters most-whether it’s valuation, momentum, quality, or risk. At Validea, we aim to simplify this complexity by combining the most powerful investing factors into one cohesive framework. The result? Our list of Top Multi-Factor Stocks-names that stand out not because of just one strength, but because they score highly across the board.
What Is a Multi-Factor Stock?
A multi-factor stock is one that ranks well across multiple, academically supported investing factors. Academic research-and real-world experience-shows that certain stock characteristics have historically been tied to superior long-term performance. These characteristics, or “factors,” include:
Value – Stocks trading cheaply relative to fundamentals like earnings, sales, book value, and cash flow.
Momentum – Stocks with strong recent price performance and improving fundamentals.
Quality – Companies with high profitability, stable earnings, and efficient use of capital.
Low Volatility – Stocks with lower price swings, which have shown strong risk-adjusted returns over time.
Our approach takes this one step further by combining Value, Momentum, Quality, and Low Volatility into a unified ranking system. We then identify the stocks with the highest overall factor scores and the most consistency across each factor.
How We Calculate Factor Scores
Every stock in our investable universe-roughly 3,000 U.S. names-is scored from 1 to 99 on each major factor. Here’s a breakdown of how each one is measured:
Value Score: A composite of PE, Price/Sales, Price/Book, Price/Cash Flow, EV/EBITDA, and Shareholder Yield.
Momentum Score: Combines price momentum (12-month return, excluding the most recent month) with fundamental momentum (growth in key business metrics).
Quality Score: Includes return on equity, return on capital, profit margins, and earnings/sales consistency.
Low Volatility Score: Based on both standard deviation and beta (a stock’s correlation with the broader market). A higher score means less volatility.
Each of these factor scores is calculated independently and then combined to produce a composite multi-factor score. The Top Multi-Factor Stocks are those that consistently rank highly across all four areas-not just excelling in one while lagging in others.
Why Multi-Factor Makes Sense
No single factor works all the time. Value may underperform when growth stocks are in favor, and momentum can fade during periods of market whiplash. By looking for stocks that are strong across several dimensions, our multi-factor approach provides a more balanced and resilient investing strategy. It also helps avoid the pitfalls of relying on just one signal in isolation.
Where to Find These Tools on Validea
To help you find and analyze multi-factor stocks yourself, we’ve built tools on Validea that allow you to:
- View factor scores for any stock
- Compare stocks side-by-side
- Identify similar stocks based on factor exposure
Watch and learn on how to find top-ranked stocks using our Factor Report and Tools
Top 10 Multi-Factor Stocks Right Now
Below is a list of the top stocks (in the top 1%) based on our most recent multi-factor rankings. These are names that exemplify the balance of value, quality, momentum, and stability we seek.
| Ticker | Company Name | Price | Market Cap ($M) | Overall %ile |
|---|---|---|---|---|
| AXS | AXIS Capital Holdings Ltd | $99.94 | 7,861 | 1 |
| BMY | Bristol-Myers Squibb Co | $46.59 | 94,814 | 1 |
| BTI | British American Tobacco PLC (ADR) | $40.69 | 87,800 | 1 |
| CALM | Cal-Maine Foods Inc | $93.95 | 4,556 | 1 |
| CI | Cigna Group | $301.89 | 80,648 | 1 |
| EXEL | Exelixis Inc | $36.95 | 10,183 | 1 |
| FDP | Fresh Del Monte Produce Inc | $32.77 | 1,571 | 1 |
| FINV | FinVolution Group (ADR) | $8.84 | 2,245 | 1 |
| GL | Globe Life Inc | $120.09 | 9,913 | 1 |
| HIG | Hartford Insurance Group Inc | $127.93 | 36,345 | 1 |
| IBEX | IBEX Ltd | $27.64 | 370 | 1 |
| IGIC | International General Insurance Holdings Ltd | $23.58 | 1,068 | 1 |
| JD | JD.com Inc (ADR) | $37.25 | 55,871 | 1 |
| NTES | NetEase Inc (ADR) | $106.40 | 67,372 | 1 |
| RBCAA | Republic Bancorp Inc | $73.19 | 1,429 | 1 |
| SKM | SK Telecom Co Ltd (ADR) | $20.18 | 7,832 | 1 |
| THG | Hanover Insurance Group Inc | $166.22 | 5,984 | 1 |
| TIMB | TIM SA (ADR) | $17.39 | 8,443 | 1 |
| TRV | Travelers Companies Inc | $264.92 | 60,023 | 1 |
| UNM | Unum Group | $80.92 | 14,109 | 1 |
| WRB | W R Berkley Corp | $71.68 | 27,192 | 1 |
By using a multi-factor approach, you’re not just betting on one idea-you’re investing in a blend of time-tested strategies, combined into one powerful framework. The Top Multi-Factor Stocks list is one of the best starting points for investors who want to tilt the odds in their favor.
Further Research on Validea
- Explore the Guru Stock Screener – Use Validea’s screener to find stocks that align with strategies from Buffett, Lynch, Graham, and more.
- See Full Guru Analysis Reports – View how each stock scores across multiple fundamental models.
- Insider Buying & Ownership Tools – Learn how insider activity data is used in some of our quantitative models.
- Top Scoring Guru Stocks Today – See a regularly updated list of stocks with the highest composite scores across Validea’s models.
- Model Portfolios Based on Legendary Investors – Follow portfolios based on Buffett, Lynch, Greenblatt and more.