Uncovering potential stocks: short-term and long-term stock selection strategies

Worried about missing a market rally? We're here to help!

At Moomoo Learn, we want to provide you with knowledge to evaluate potential stocks in a rallying market. Our strategies are designed not only to identify upward-trending stocks during bullish phases but also to uncover possible opportunities during market pullbacks—a time when savvy investors review and adjust their portfolios.

So, how can you find potential buying opportunities in the stock market? By combining technical analysis with earnings reports, you can develop a robust stock selection strategy. This week, several key companies are set to release their earnings reports.

To identify potentially good candidates fot selection, consider the following factors:

– Short-term: market sentiment, technical trends, and event-driven factors;

– Long-term: fundamentals and growth potential.

If the market has positive expectations on companies's performance before the earnings report, the stock price may have factored in this expectation in advance, and the stock price may not change significantly. Also, if the results are below expectations, the stock price may decrease.

Using chart analysis to identify possible support and resistance levels of stock prices is a relatively simple and commonly used technical analysis method.

Pay attention to the latest news of the company, such as earnings report release, management changes, new product releases, or industry-related policy changes, as these may have short-term impacts on stock prices.

Companies with clear business models and stable market positions generally possess a competitive advantage.In addition, the Price-to-Earnings (P/E) ratio and Price-to-Book (P/B) ratio can help determine if the stock price aligns with its fundamentals. Lower P/E and P/B ratios may indicate that the stock is undervalued.

Analyze the earnings reports in depth. Consider looking for companies with stable profit growth, reasonable debt levels, and healthy cash flow. For example, net profit growth rate, debt ratio, operating cash flow, and other data can help with the assessment.

In the strategies mentioned above, some conditions can be quantified, such as trading volume, P/E ratio, P/B ratio, and financial data. Investors can establish appropriate screening criteria based on their investment objectives.

Combine other non-quantifiable factors and conduct fundamental and technical analysis on the selected stocks.

– The above stock selection strategies are for reference only and cannot determine the rise or fall of stocks. Investors should focus on risk management and portfolio allocation.

– Stock selection strategies may not apply to all investors, and investors should learn to design a strategy framework, combine their own thinking to set filtering criteria, and develop their own stock selection strategy.