Investing Experts Quant Q&A with Steven Cress
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Jan 7, 2026 Steven Cress, Head of Quant at Seeking Alpha, dives into the world of quantitative investing. He discusses why Credo Technology has high momentum ratings and explains the Z-score for stock comparison. Discover why Merck outperforms Pfizer in momentum, and how to navigate energy stocks amid shifting fundamentals. Cress emphasizes the importance of diversification and explains the hold rating for Comfort Systems. Tune in for insights on balancing value and growth with core quant factors!
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Credo's Momentum Is Period-Based
- Credo's momentum stays high because it outperformed its sector across 3-, 6-, 9-, and 12-month windows.
- Strong long-term gains (e.g., +101% over 12 months) keep its momentum grade elevated despite recent weakness.
Z-Scores Become Letter Grades
- Seeking Alpha converts Z-scores for financial metrics into academic letter grades for readability.
- This grading maps sector-relative z-scores into A+ through F so users quickly see strength or weakness.
Merck Slightly Beats Pfizer Quantitatively
- Merck and Pfizer are very close in quant rankings but Merck edged out Pfizer on momentum and recent returns.
- Small differences in momentum and one- to six-month returns determined the Merck pick over Pfizer.