Every week, we highlight a stock with a high average win rate for its BUY signals (above 70% after 3 months since 2017), and which is currently rated as a BUY or Strong BUY.
The Trade Idea of the Week is Verisk Analytics | VRSK 0.00%↑
Fundamental Score: 9
Technical Score: 9
Sentiment Score: 9
Low Risk Score: 6
Gryning Score: 9 | Buy
Today our AI maintains a BUY rating (AI Score 9/10) on VRSK, because its overall probability advantage of beating the market (S&P 500) in the next 3 months is +9.13% (43.99%) vs. the average probability (34.86%) of all US-listed stocks.
VRSK - Suggested Trading Parameters:
Entry price: $281
Horizon: 3 months
Stop Loss: $265 (-5.69%) or AI Score < 7/10
Take Profit: $323.04 (+14.96%) or AI Score < 7/10
VRSK Buy Signals Track Record
Below, you can see the Verisk Analytics chart since June 3, with the past BUY signals (AI Score 7 to 10) highlighted in black dots. In the 3-month forecast, the central dotted line shows the most expected price path (+5.84%). The dotted boundries show the expected price range (-9.26% to +20.92%) based on the previous BUY signals with a 90% confidence level:
Three months after each of its 1325 BUY signals (since Jan. 2017), VRSK achieved in the past a 72.86% win rate (positive performance cases) and a +5.84% average performance.
Today’s Verisk Analytics BUY rating (AI Score 9/10) is based on the 23 fundamental, technical, and sentiment features that are among the ones that had the greatest impact on the performance of stocks during the last 12 months (alpha signals). Below, you can see the top 10 VRSK alpha analysis report, ordered by probability advantage impact:
One of the top alpha signals for VRSK today is its Profit Margin Pre-Tax, which currently stands at 39.73%. This places it in the highest decile (10th out of 10) among all US-listed stocks.
Based on the analysis of stock features that have most impacted stock performance over the last 12 months, this feature (an alpha signal) increases VRSK’s probability advantage of beating the market by +0.49%, bringing the total probability advantage to +9.13% compared to the average probability of all US-listed stocks.