To The Moon

When it comes to investment, I like to share the “new” knowledge that I have come across.

Today, this post is one such discovery. Without ado, let’s jump in.

Some investors believe that stocks picking requires a compelling story, but here is another proven strategy. (see below)

Quantitative Approach.

This approach focuses on buying companies during the right market conditions using only quantitative data, without needing any story.

Charts will be used to show how this method works.

In a rising market, leaders are companies reaching new highs too.

The trick” here is to quickly:

• Look for those just starting to rise.

• Not overvalued yet.

• And with strong business fundamentals.

The method to select tried & tested “leaders” hinges on 3 balanced pillars:

• Quality - reflects the company’s structural integrity or how solid the company is.

• Valuation - considers what investor is paying relative to assets, earnings, growth or sales etc…

• Technicals - the stock’s price trends and patterns.

The approach is summarized with the acronym, TORQ:

• Trend - Is the stock or market moving up?

• Overbought/Oversold - Is the stock too expensive or ready to rise?

• Relative Performance - Is the stock doing better than others?

• Quality Patterns: Are there signs in the price that it’s about to break out?

Remember, the TORQ methodology has nothing to do with a company’s products, services, management or traditional fundamental narratives.

Instead, it’s about numbers —quantitative discipline over storytelling.

Screening for Quantitative Leaders

To illustrate, the Russell 1000 was screened for companies trading within 5% of their 52-week highs.

Then, a special scoring system was used to rate each stock based on its (a) price strength or technical momentum and (b) financial health or fundamental strength.

This process produced a list of stocks with strong "quantitative leadership."

These companies fit the TORQ method, meaning they have (i) strong trends, (ii) good buying conditions, (iii) better performance than most, and (iv) clear signs of price strength.

The result is a list of "quantitative leadership." stocks. (see below)

• $Broadcom(AVGO)$

• $Booking Holdings(BKNG)$.

• Capital One Financial Corp. (COF)

• Encompass Health Corp. (EHC)

• Equitable Holdings Inc. (EQH).

• Fox Corp.(FOXA).

• $JPMorgan Chase(JPM)$.

• NRG Energy Inc.(NRG)

• Planet Fitness Inc.(PLNT)

• $Royal Caribbean Cruises(RCL)$

• SEI Investments Co.(SEIC)

• TransDigm Group Inc.(TDG)

• Trane Technologies Plc.(TT)

• $VeriSign(VRSN)$.

They are not chosen based on their stories, as their narratives have not been analyzed.

They are selected because they meet strict quantitative criteria.

Each stock has recently emerged from (a) a corrective base, (b) a key technical pattern, and (c) shows better profitability, returns on invested capital, balance sheet strength, and growth compared to peers and the overall market.

Case Study - AVGO.

AVGO fits the TORQ methodology well:

• It shows strong upward trends, is trading near its all-time highs.

• It has outperformed the broader market with a more than +59% gain over the past 12 months.

• The stock’s technical strength is confirmed by its ability to rebound quickly from short-term sell-offs and close at record levels, supported by robust trading volumes and positive analyst upgrades.

• AVGO’s fundamentals are solid, with Q2 2025 sales up +20% YOY to $15 billion.

• Profit margins is at 77%, highlighting both quality and valuation strength.

• Since 01 Jul 2025, its stock’s price action, confirms continued momentum, breaking through to new highs and ending at $275.18 on 3 Jul 2025. (see below)

This combination of trend, relative performance, and quality patterns makes AVGO a clear example of quantitative leadership under the TORQ approach.

Good DNA Matters

This list is a good starting point for investors who focus on strong company fundamentals.

Some of these companies may become top performers in the coming months, based on past trends.

At the very least, this method helps an investor increase his / her chances of success by choosing companies with both strong financials and positive stock trends.

The selection is based on numbers, not stories.

Using disciplined quantitative analysis of data like momentum, quality, and valuation can improve investment results and avoid emotional decisions.

My viewpoints: (mine only)

I was a little shock when I go through the list of 14 stocks and I could only recognized a handful.

When I review again, its the Russell 1000 index, not the DJIA, or S&P 500 or Nasdaq indexes.

I think this “shared” investment discipline play to immediate to short terms only. This is because its a combination of (a) “flavour of the moment” mentality and (b) market sentiments.

No doubt if a stock becomes successful, well run & managed (financially) - it could evolved to become a long-term investment.

However, in the initial run where assessment is short of “narratives” and “analysis”, the strategic investment tenure could only be as such; especially if the stock is closer to “penny” status.

Remember to check out my other posts. (See below). Help to Repost ok, Thanks.

Must Read: Click on below titles to access. Repost to share, Like as encouragement ok. Thanks.

• With Jobs Report out & done, time to SOFI ? Fri, 04 July. Picked post.

• In Trump-Musk Clash, buy RKLB, GSAT & AMZN ! Fri, 04 July. Picked post.

• Will US Market & CYN Make A Recovery Today ? Thu, 03 July. Picked post.

• Do you think this method will work for you ?

• Do you think the 14 short listed stocks are compelling buys, with a buoyant US market ?

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