Fundamental momentum measures how a company’s operational and financial performance improves over time through metrics like return on equity, operating margins, and other key indicators. Unlike price momentum, which only…
Tag: Fundamental Investing
Ten Guru-Approved Stocks With Improving Fundamental Momentum
Fundamental momentum represents a company’s improvement in operational performance and financial health over time, as measured through changes in key metrics like return on equity (ROE), operating margins, and other…
Twin Momentum: Combining Price Momentum & Fundamental Momentum Into One Top Quant Model
In this week’s Screen of the Week, we highlight the Twin Momentum model on Validea, which is a academic model developed by researcher including Dashan Huang. The model combines fundamental…
Twin Momentum: Combining Fundamental and Price Momentum Together In One Quantitative Model (Ep. 59)
The academic research supporting the momentum factor is very strong. But most of that research focuses on the momentum in a stock’s price. An interesting research paper written by Dashan…
Excess Returns, Ep. 36: Have the Fed, Narratives and Passive Flows Broken Fundamental Investing?
Valuing a company (or the market in general) typically involves looking at its price and judging that price relative to its current and projected future fundamentals. But some have argued…
When Fundamentals Don’t Matter
By Jack Forehand (@PracticalQuant) Valuing companies can be a challenging process. While it is commonly accepted that the value of a company is the present value of its future cash…
"Aswath Damodaran Says “Go Back to Basics” Regarding Valuations
In a speech he delivered at this year’s CFA Institute Annual Virtual Conference, NYU finance professor Aswath Damodaran said, “It is precisely times like these that matter most. You need…
Robots Won't Replace the Fundamental Investor
A new study by McKinsey says that traditional asset managers are using advanced analytics to build better decision-making capabilities rather than to replace human portfolio managers. This according to an…
"Quantimental" Fund Management Raises Eyebrows
It seems that name-melding has extended beyond the ranks of celebrities (think Brangelina and TomKat) to the world of fund management. An article in this month’s Pensions & Investments explains…
Fundamentally Sound Stocks Win When Recessions Loom
Whether it’s interest rate hikes or China’s slump or US weakness, investors have found a myriad of economic reasons to worry in 2016 — and they’ve expressed their worries by…