Key insights
- A retail investor details a personal stock-picking strategy based on a proprietary "Value Score" metric, highlighting significant YTD gains and specific holdings like MU. While anecdotal, the post suggests potential opportunities in value-oriented tech and pharma stocks, but also carries risk due to high leverage. The "Value Score" methodology could be a source of alpha if broadly applicable.
I've posted several times that I evaluate stocks by comparing a company's Projected Revenue Growth plus Operating Margin (Value Points) to its Enterprise Value/Projected Operating Profit multiple (Value Score).
I'm up 30% YTD with this technique holding MU, NVDA, GOOGL, MSFT, META and LLY with 50% leverage. Last year I was up 46% and the year before was +80%.
MU right now is my bet the ranch pick because its Value Score is 18.44. Anything above 2.0 is considered a possible Buy.