Stock Ideas

Quality stocks available at bargain

Many quality stocks have come under the shadow of the weakness in broader market. We enlist three such stocks, which could be considered by the investors

Quality stocks available at bargain

The small-cap indices fell-off the cliff, dropping by nearly 34 per cent in 2018, following two years of healthy gains. In this precipitous fall, even the stocks of quality companies, fell by 40-50 per cent in certain instances. During these dire times, investors should take clue from a quote by the 18th century British banker, Baron Rothschild, 'the time to buy is when there is blood in the streets.' But not every stock that is falling warrants a buy. How should then one differentiate the wheat from the chaff. To do this, we have applied three safety filters. These include the Altman Z-score, which predicts the likelihood of financial distress, the modified C-score, which eliminates the probability of creative accounting and the Piotroski F-score, which compares the financial performance of the current year with the previous year. In addition, some additional filters have also been applied to narrow down the list further on the basis of past performance. These are:


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