My Top 5 Favourite Things About Stock Rover

As a stock market educator and investor for over 20 years, I have been recommending using Stock Rover for some time now. In fact, the more you use it the more you realize that underneath the simple and elegant design lies a lot of power.

In this blog post I will review my 5 favourite and most used elements of the Stock Rover platform.

The Database

With a screening and research tool, the key magic ingredient is the database, and boy is this a great database.

There are over 650 different selectable metrics, and 228 of those metrics contain 10 years of historical data. That historical data can be selected as Trailing Twelve Months (TTM) or historic calendar year data.

Some of my very favourite ratios and calculations are:

  • Margin of Safety / Fair Value
  • Greenblatt Earnings Yield and ROC
  • Return vs S&P500
  • Piotroski and Altman scores
  • The Stock Rover Growth and Value Scores

The Visuals & Research Reports

I am a very visual person, and I really like the fact that a large amount of the data available is thoughtfully represented in charts, and graphically appealing tables. This has been taken to the next level with the integrated Research Reports functionality. With the visual representations of data, you are able to absorb and understand a lot of data extremely quickly which saves you so much time and effort. Scanning through a companies quarterly financial reports is a thing of the past when you have Stock Rover.

Stock Rover Research Report

In addition to the visuals and reporting I really like the integrated warning system. This system flags up and discrepancies in the companies financial reporting or even in any of the financial ratio’s that may be less useful when applied to a specific company.

The Back testing

The ability to back test using a fundamental screener is extremely useful and can help you prove that your stock selection methodology has also worked in the past, like you hope it will in the future.

The Liberated Stock Trader Beat the Market Screener seeks to select stocks that have a significant chance of beating the S&P500 returns. The screener uses growth in free cash flow, and explosive EPS growth. Combining this with Joel Greenblatt’s ROC and Earnings Yield formulas “the Magic Formula” we have a selection of stocks that has significantly beaten the market 5 of the last 7 years.

Beat the Market Screener

This beat the Market has been made possible due to the fabulous work done by the team at Stock Rover, who have created a powerful research and screening platform, which won our in-depth Best Stock Screener Review for the last 2 years.

The Equation Editor

Back testing your screener is enabled by using the Equation Editor. You can select the data you want to screen on, by clicking the Add Freeform Equation in the Update Screener Window.

Screener Update

Using the example of the Beat the Market Screener, you can see I have used the 2 Year and 3 Year historical Greenblatt Earnings Yield historical data.

Update Criteria

The Portfolio Analytics

Finally, I really like the portfolio analytics, which enables you to compare the returns of each of your portfolios for a given period. Additionally, you can see the portfolio correlation to the S&P500, the risk adjusted return and the Sharpe ratio.

Portfolio Analytics

Summary

While this is not a complete list of all of the elements of Stock Rover that I like, it is some of my favourites.

If you are not already a Stock Rover customer and are deciding whether to sign up, read my Stock Rover Review to see how I use Stock Rover and my ratings of all the benefits and features.

 

Author Bio:

Barry D. Moore is a Certified Market Analyst, Author & Investing Trainer with over 20 years of investing experience. Founder of LiberatedStockTrader.com a leading investment educational website since 2010.




Comments

Barry, great post, and your stock screener is very impressive. I have had a look at your website’s description of your screener as well as the results in Stock Rover and a couple of questions arise. I wonder what kind of turnover the screener produces. From month to month, is there a big change? I noticed that your backtests were run with equal weights from the first to the last days of the year. Do you think this strategy is best used with an annual reconstitution/rebalance? I’m a relatively inexperienced investor and just getting familiar with Stock Rover’s screeners but if I understand correctly, the screener compares criteria from the previous 2 calendar years. For example, the equation “Free Cash Flow [Y1] ” > “Free Cash Flow [Y2] ” suggest to me that what’s being compared is 2019’s to 2018’s FCF. So that makes me wonder if it would be worthwhile to start using a portfolio of these stocks now, md-way into 2020.

Hi Matthew, thank you for your kind words.

Let me try to answer your questions.

The question regarding turnover, it is difficult to assess what the changes would be be thoughout any given year, as the backtesting data uses data for a given calendar year in the past and it is not possible to run a screen from a particular day during previous years. The backtested results will be static because the data is historical and should not change.

But I suggest running the screener at the beginning of the year because the current year screener takes advantage of the previous Y1, Y2 yearly data for the stocks.

The current screener “Liberated Stock Trader Beat the Market Screener” uses “1-Year Return vs S&P 500 [Now] ” >15 – which means that during the current year you will get different results depending when you run it because the stock needs to beat the S&P by 15%. This will change during the year.

Yes rebalanace every year as the data for the previous year changes

Your final question regarding is it worth using the screener now, or wait for January. The testable situation would be run it from January. I created the screener in April and have invested in some of the stocks in April.

It up to you.

thanks again

Barry

Finally a standard disclaimer. I do want to confirm that no system is guaranteed to make money every year or in fact any year, and LiberatedStockTrader.com accepts no liability or responsibility for anyones investments, I am not a registered financial advisor and do not know your specific risk reward tolerances.

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