Steve Cress from Seeking Alpha interview - How Alpha Picks beats the S&P and how they have a backtested strategy - SPECIAL EPISODE
Mar 23, 2024
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Join Steve Cress, Head of Quantitative Strategies at Alpha Picks, with 30 years of equity research expertise. He dives into how Alpha Picks consistently outperforms the S&P, highlighting a staggering stock that surged 1,000% in a year. Cress emphasizes the power of quantitative analysis in stock selection and offers insights on notable companies like Nvidia and Boeing. He also discusses strategies for navigating economic challenges with stocks like Royal Caribbean, showcasing how disciplined investment approaches can lead to maximized returns.
Steve Cress explains how Alpha Picks uses a quant model to identify stocks with strong investment characteristics, optimizing investment decisions.
Successful stock selections, like SMCI's 1,000% growth, highlight the importance of strategic recommendations and market analysis for investors.
Quantitative strategies simplify data analysis, helping investors focus on long-term growth opportunities by categorizing stocks based on potential and valuation.
Deep dives
The Value of Return on Ad Spend in B2B Marketing
Return on Ad Spend (ROAS) is a critical metric that businesses in B2B marketing use to assess the effectiveness of their advertising efforts. The concept of ROAS revolves around evaluating how much revenue is generated for each dollar spent on advertising. Mastering this calculation can help marketers optimize their campaigns and allocate budgets effectively. For example, achieving a higher ROAS indicates that the advertising strategies employed are yielding successful outcomes and might encourage increased investment in those areas.
Stock Performance Overview
The episode highlights various stock performances and strategic recommendations made by Steve Kress from Alpha Picks. For instance, companies like Super Micro Computer (SMCI) have demonstrated substantial growth, with a staggering increase of over 1,000% since they entered the portfolio. Conversely, stocks such as Boeing have faced fundamental challenges, leading to advice against purchasing at the moment. Throughout the discussion, the focus remains on identifying stocks with solid investment characteristics to maximize returns for investors.
Methodology Behind Stock Selection at AlphaPix
The selection process for stocks at AlphaPix involves a thorough analysis using the Seeking Alpha quant model. This model evaluates various investment characteristics including value, growth, profitability, and analyst revisions. By focusing on strong buy ratings based on these criteria, the team filters down to the best stocks on a monthly basis. Subscribers receive updates on top picks, allowing them to make informed investment decisions without performing extensive research themselves.
Quantitative Strategies in Stock Investing
Steve Kress emphasizes the role of quantitative strategies in investment decision-making. These strategies simplify complex data analysis, enabling investors to filter through numerous stocks quickly and identify promising opportunities based on fundamentals. The approach relies on categorizing stocks with high growth potential and favorable valuations, aiming for substantial returns on investment. This systematic methodology aids investors in navigating market fluctuations and focusing on long-term growth rather than short-term volatility.
Investment Characteristics that Matter
Key investment characteristics such as momentum, profitability, and valuation are pivotal in determining stock performance and recommendations. For instance, while a stock may show strong growth potential, its valuation still needs to be reasonable relative to its earnings and market expectations. The episode discusses how stocks are not just rated based on their past performance, but also assessed through various metrics, such as EBITDA growth and price-to-earnings ratios. By focusing on these fundamental aspects, investors can make better-informed choices and increase the likelihood of successful investments.
I sit down with Steve Cress from Seeking Alpha. He's in charge of all the Quant ratings on the Seeking Alpha website and he's the guru around Alpha Picks. His insight in to how they pick stocks, why you would want to subscribe to Alpha Picks even if you have Seeking Alpha Premium and if you want to do your own research with Seeking Alpha, he shows you how to do it.