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Daniel Snyder: Hey, everyone. I’m Daniel Snyder. Thank you so much for joining us on this special webinar today with our one and only Steven Cress, Head of Quantitative Strategies here at Seeking Alpha to go over his Top 10 Stocks of 2024 post Q1 earnings. So, obviously I expect a lot of updates here. Steve, what you got for us today? How are doing?
Steven Cress: Well, Daniel, thanks again for having me on. And I got to tell you, this is probably one of my favorite webinars that I have done for Seeking Alpha since I’ve been here. The reason why is, I really, one of the enjoyable parts of my year is in December, when I get to pick the stocks for the upcoming year. I absolutely love doing that. And that’s really what I want to show a lot of people today.
So, we are going to go through the stocks that I selected for 2024 and 2023 and a little bit about the market and what’s happening, but I am also going to show people how I select stocks in the beginning of the year. And for many of those who are familiar with the articles that I put out for top stocks for 2023 and top stocks for 2024, you’re probably aware that the performance has been absolutely stellar and that’s why I’m really looking forward to showing everybody how I do this.
So, Daniel, as we always do, we are going to take care of a little housekeeping. I’ll give you the honors here, if you like.
DS: Let’s dive right in. Alright. We are not advising you personally concerning the nature, potential, value, or suitability of any particular security. You alone are solely responsible for determining whether any investment, security, or strategy, or any product or service is appropriate or suitable for you based on your investment objectives and personal and financial situation. Past performance is no guarantee of future results. Seeking Alpha is not a licensed securities dealer, broker, or U.S. investment adviser, or investment bank. We just have a lot of great ideas. I’ll just plug that in.
SC: Daniel, we should know this disclaimer byheart at this point, right?
DS: Yeah, seriously.
SC: Alright. So, let me start by telling for those who are new to Seeking Alpha, and even for those who are not new, to give a little bit of a description on what is Quantitative Analysis? I like to tell people, it’s really – just envision what a conventional, what a traditional analyst does on Wall Street. Whether they work at Merrill Lynch or Morgan Stanley or Goldman Sachs or UBS, or even if they are on the asset management side and they work for Fidelity or T. Rowe Price, an investment analyst, their job is to typically cover a sector and companies within that sector and they do deep-dive research process. And part of that deep-dive research process is going over the company’s balance sheet, the income statement, the cash flow, and looking at all the company’s metrics, and then taking another look at what’s happening in the industry, what’s happening with the regulatory environment, trying to talk to management and they have a mosaic view that they try to pull together.
So, that is what a fundamental analyst does, and that’s their profession. That being their profession, you can only really cover a handful of companies at one-time. So, if you cover a sector, there could be a hundred companies in the sector, but as an analyst, you really only have the ability to maybe write about 15 or 20 stocks a year at most, and really closely know what’s going on with maybe just like 5 stocks at any given time to really be able to say, where’s the P/E for company? What’s the earnings per share growth rate? What’s the profitability looking like? And that is the job of an investment analyst. And they’ve been doing research that way for probably several hundred years.
So what is Quantitative Analysis? From the way I conduct Quantitative Analysis, as I often refer to it as quantimental, we’re really doing the same thing that a professional investment analyst does, but we’re juicing it up with the power of computer processing. So, what I do is I’ve developed an algorithm that takes a look at close to 4,500 stocks and all the information that an analyst would look at, at a company, the income statement, cash flow, balance sheet, all those financial metrics, like 100 financial metrics, we load that information up into the algorithm every single day, and we sort the stocks out, and we rank them on all those different metrics, their strengths, and the weaknesses that goes into the algo. And that’s what we do with Quantitative Analysis.
So, it’s an investment analyst on steroids. And it gives us the ability to actually refresh that data every single day. And there’s no way that it’s humanly possible that an investment analyst could refresh that data every single day, but through the power of computers, we do have that ability. And then also as a Quantitative Analyst, you want to make sure you have a good strategy. So, I’m fortunate that I’ve been doing this for close to 20 years in terms of just quant.
I’ve been in the world of finance for over 30 years. And part of the process is with that strategy that you want to identify what works. And what I’ve identified that what works is more or less it’s like a GARP strategy. It’s growth at a reasonable price, but we’re adding on a couple other factors with momentum, EPS revisions, and we’re mixing into that strategy. And that strategy has proven to be very successful over a long period.
So, what does our Quant system do? What are those core factors that we look at? We’re looking at value, we’re looking at growth, we’re looking at profitability, we’re looking at EPS revisions, and we’re looking at price momentum. But when we look at those factors, we score compared to the sector. And that’s part of the quantitative aspect to it, where you’re not just looking at absolute terms, you’re comparing it to the sector. And at Seeking Alpha, we take these 4,500 companies, and on any given day, we’ll have maybe about 400 Strong Buys, 400 Buys, the same amount of Sells and Strong Sells we match it out.
And if you’re looking at professional analysts for Wall Street, even though their earnings estimates and their models are pretty good, sometimes with the recommendations, it’s pretty hard for them to put a Sell on a company because they’ll stand no chance of getting investment banking or it could be hard for them to access management if they have a Sell. We are a data-driven process. So, our data-driven process leads to that directional recommendation. And that’s why we’ll typically have the same amount of Strong Buys as we do for Sells, and then a lot of stocks in the middle at Hold.
So, sometimes a picture is worth a thousand words. If you take a look at the factor grades, when you look at any of our stocks, you’ll see for valuation, growth, profitability, that grade, and that is showing you that stock’s investment characteristic relative to its sector. So, you know the valuation. In this case, if it was a D, it would be pretty expensive versus the sector. If you’re looking at growth, it’s better than the sector. A+ for profitability would mean that it’s much better than the sector. And that’s what we want to do. We want to give you an instant characterization of how that stock stands versus the rest of the sector to make it easier for you to make that investment decision.
So, as I mentioned, we have a pretty good track record. This is our performance of all our Strong Buys going back to 2010. Part of this is back-tested, 2010 through 2019 is back-tested, but we were active with this starting really in 2019. So, we showed actually the simulated trades that occurred from 2020 through to date. You could see the performance actually really took off for the period of the simulated trades. The strategy is the same, but I’m quite pleased that the performances continue to be very good.
So, the last 12 out of the 13 years, the strategies outperform the S&P 500. The one-year that it did not was last year. And last year was not about investment fundamentals, it was solely about the Magnificent 7, and that’s what drove the stock market last year. So, it was very hard for any manager to outperform the S&P because those 7 stocks on average were up about 111%.
So, you don’t have to take my word for it though, even though it’s a data-driven process and you were seeing those Strong Buys and their performance, I’m really pleased to inform you that there was an independent study performed by the University of Kentucky. Professor Jame Russell performed it. I’m sorry, Professor Russell Jame performed this study. And he actually contacted me once the study was completed. He did a further update to the study. And he did ask me questions before that update came out, but his study pretty much validated the process that we use.
And he not only validated our Quantitative methodology, he also studied Seeking Alpha Contributors that incorporate Quant grades and our ratings and recommendations from the Quant side into their research. And the conclusion was that the Seeking Alpha Contributors that incorporated Quant into their reports had better performance. In terms of the pure Quant performance, he actually compared it to a number of academic studies that were performed.
And I’ve dropped a link here if anybody wants to read the article that we wrote that there’s – where there’s an overview. And within that article, there’s also a link to the study itself, which is about 50 pages long. The article does a nice summary of it and probably about a page. But the study concluded that the model that we have at Seeking Alpha, it outperformed not only other multifactor models, but it also outperformed what’s known as a capital asset pricing model.
So, on a number of different fronts between the capital asset pricing model and different multifactor models, one which was done by Eugene Fama who won the Nobel Prize in Economics, and I got to tell you, I’m pretty flattered that our model went up against that and showed better performance. It’s quite thrilling. Having said that, his model was developed well over a decade ago. So, people have had time to copy what he does, but I am quite, quite pleased that our Quant system has done so well.
So, that will bring us to – we’re in 2024, but I want to give a little bit of the backdrop to 2023 because it was actually in December of 2023 when we picked our stocks for 2024. So, just as a friendly reminder, everyone experienced the S&P 500 being up about 24%. They felt it was a pretty good year, but it was very, very deceptive. If you looked at the S&P 500 on an equal weighted basis, it was actually only a 12%, which was half of the performance. The S&P 500, the way they calculate that performance is it’s based on a market cap weighting.
However, you can take the S&P 500 and equal weight the stocks. And that is, I think, a much greater indication of the broader market and the economy when you’re looking at 500 companies on an equal weighted basis. If you took a look at what the median return was last year, it was actually negative 16%. So, it really gives you an indication. If you’re looking at the median return for the S&P 500, down 16% versus the Magnificent 7 that were up 111%, it really shows you how that index was tilted towards just 7 outliers.
So, why did those stocks do so well? The Magnificent 7 had a couple of good things. One was actually not such a good thing. Their performance in 2022 was actually below that of the S&P 500. And of course, that’s a period where we were coming out of the pandemic. There was a lot of nervousness over the market and people were very, very uncertain in 2022 what was going to happen. The market was down that year and the Mag 7 was down more.
So, as we got into 2023, there was a little bit more clarity. There wasn’t quite the fear that we had in terms of what you might call a healthcare crisis combined with geopolitical, became more focused in 2023 on inflation and interest rates. And even though there was uncertainty with that, there was a little bit more clarity. And the clarity was the Magnificent 7 were incredibly profitable companies. And that’s what you want to do during periods of uncertainty. You go where the quality is, you go where companies are profitable. So, as a flight to safety, a lot of people were driven to the Magnificent 7.
However, there was also the AI boom. And it started with NVIDIA and it quickly spread across to the other 7 companies, the Mega Tech stocks, as I often refer to it, not just as the Magnificent 7, but AI became an incredible theme, and all these Mega Tech stocks are involved in AI and they make that story very, very clear. And it was actually, Facebook had an amazing turnaround because it did so poorly in 2022. And they weren’t helping themselves really in 2022 with the focus that they had on the Metaverse. However, by the time they got to the fourth quarter of 2022, they started to get religion. I think they knew that investors were very, very skeptical about the Metaverse. And they started to really focus on cost cutting. They started to focus on their core business, but they also started to focus on AI. And that really led to an incredible turnaround for Meta in 2023.
So, number of these points that I’ve mentioned, but that I did not mention is the last bullet point here is the incredible amount of concentration risks that you have with an ETF like SPY or any ETF that represents the S&P 500 on a market cap-weighted basis, you’re really heavily tilted towards just 7 stocks. And in fact, those 7 stocks account for one-third of the S&P 500. And if you’re in the NASDAQ 100, 44% of that weighting is in these 7 stocks. And I think we’re really almost at a record level.
There was a chart here from Bloomberg, which shows the Mag-7’s weighting in the S&P 500. And it shows that the S&P 500 hit a record concentration level since 1920. And at this point, it was with 25% of the S&P 500’s market cap being in those 7 stocks.
And I like this quote that came out of Deutsche Bank, their macro strategist wrote, “The Mag 7 are bigger than the entire Chinese market, double the size of the Japanese market, and over 4x the size of the UK market.” Literally, they are bigger than countries in terms of their economic presence.
Another thing that I’ll highlight with these is that they are extremely overvalued. So, this – we took – from the beginning of the year, but I think it’s a picture that really tells a story. If you look at the upper left-hand side, it basically shows the P/E for the Magnificent 7 at 29x versus the S&P 500 at 19x, which to me is actually at a fairly attractive P/E level for the S&P 500, but if you looked at the S&P 493, basically ex those Magnificent 7, the multiple was 16x.
And on another basis, a ratio that I really like to look at is a PEG ratio. The PEG is a combination of the P/E, price over earnings, along with the earnings growth. And it’s one of my favorite ratios. You could see that the Magnificent 7 came in at a very expensive 1.7 on that P/E basis, but the broader market was at 0.87, again, much more attractive in terms of that level.
So, where does this bring us to for picking top stocks for 2023 and 2024? We are looking for stocks, as I said, that are collectively strong on valuation, growth, profitability, momentum, and EPS revisions. And I have to say most of the Magnificent 7 stocks are not attractive on those features. The valuation is very expensive for most of those stocks. The growth for many being, if you’re looking at Apple and you’re looking at a number of stocks and even like growth coming down, which we’re seeing in a couple of the quarters, it’s just not there. Most of them are very, very profitable, but we’ve really started to see a disconnect early this year with two of the stocks actually underperforming the S&P 500.
So, what does that bring us for top stocks going back to 2023? So, imagine we’re coming out of 2022, my mission in the beginning of the year is to pick my Top 10 stocks. So, I stuck to what I do best. And I look for companies that were strong collectively on that valuation basis, on growth, on profitability, on EPS revisions. And the list I came up with was Super Micro Computer, Modine Manufacturing, MINISO Group. I love to point this out. Jackson Financial, I picked in January of 2023. The stock immediately got slaughtered. We went into the financial crisis. They’re more of a regional bank that you could consider as a money center. And even though their earnings came through better during the entire year, the stock got hammered for a majority of the year. But lo and behold, as we got closer to the end of the year, and this is looking at that list going back from January of 2023 to date, you could see on the bottom right-hand side, these stocks on average are up 147%.
Now, of course, we had our number 1 pick back in January of 2023. That was Super Micro Computer. You can see on the far right-hand side, from that point to now, the stock is up 846%, but my list was not a one-trick pony. We had Modine Manufacturing, up 356%; MINISO, up 102%; Jackson Financial, again, I got tortured over that one, that was up 96%. Another one was a Chinese stock, PDD. I got tortured on that one as well. The stocks actually performed quite well, but a lot of investors have a difficult time going into Chinese stocks and I don’t blame them.
There’s been a lot of Chinese stocks where people have been fooled. So, what we do is, we’re going to look at a Chinese stock and we see that it’s got really strong earnings growth, high profitability, a good valuation, we’re going to take a deeper look to make sure as much as we possibly can that it’s a real thing. And this company definitely came through. I mean, they have tens of thousands of customers all over the world that rave about the platform and how they bring shopping front and center and make it fun. So, we felt very comfortable with recommending PDD. And again, we were definitely rewarded with that stock.
Valero Energy up 32% and ASC Shipping. A stock that did very, very well in 2022, which was Hudson did not do so well in 2023. So, they weren’t all great performers, as you could see, but by and large, the 10 did very, very well.
So, what I want to do is, show you what the current picture looks like for some of these stocks. And I often say to people, when a stock drops to a Hold, it means Hold. It doesn’t mean Sell. And what we do with one of the products that we have for Alpha Picks, if a stock goes from a Strong Buy to Hold, we maintain it in the portfolio for at least 180 days, but remember, this is the list, Daniel, that we picked in January of 2023, not 2024, but January 2023.
And what we’re doing is, we’re taking a current look at what the expectation is for earnings coming into this quarter. And you could see that these EPS revision grades continue to remain really, really strong for the most part. So, we have 1, 2, 3, 4, 5, 6 of them are heavily in the green. Many of them are A. And the EPS revision grade is where analysts on Wall Street, it’s actually the quantity of analysts, are taking their estimate up or down. And if you see an A+ grade, that means relative to the sector, more analysts are taking their estimates up for this company versus the sector.
So, many of these stocks still look good. Super Micro Computer, Modine, PDD, ASC Shipping, Valero, and Jackson Financial. Some of the others, the analysts are not as optimistic, but we’re still looking great with many of those stock picks from 2023. And as I said, from that point in time to date, they’re up 140%.
So, that brings us to this year, our top stocks for 2024. So far, we had a bunch of them report. And it’s been a very strange earnings season for the last couple of days. Every single stock that we have has beat expectations on both top line and bottom line. So, I’m really, really pleased with that, but we’ll take a deeper look at Meta, which is off about 12%. So here, this is a case where they beat top line, they beat bottom line, but Zuckerberg gave some guidance where he said, he’s not sure that the revenue growth will be there for the next quarter. And they’re also going to continue to make a big investment in AI. So, investors pulled back from that.
I got to say, when a company is consistently beating their quarters on a top and bottom line basis, and the CEO gives them guidance that leads the stock down, I often actually find that a buying opportunity. So, one of the things that I want to do, and I’m going to pull out of this because I want to show the performance for the top stocks for 2024. And you could see right now, so this is the list that I picked in January. Actually, it was out on December 31st, published January 1st. So, these stocks are top 10 stocks for 2024. On average, they’re up 37%. The S&P 500 right now is up, I’d say, maybe a tad over 5% year-to-date. So, you could see our stock picks have done very well this year.
We have GigaCloud Technology, it’s up 84%. And really, I had a pick for this year. Last year was Super Micro Computer was my top pick. This year was Booking Holdings. And I really was leading towards Giga Tech and AppLovin as my top choices, but at the time, like I felt the Giga Tech, their market cap is really small. It’s a small cap company. It’s about $1.8 billion, but I really like the company. I’m going to show people why I liked it.
AppLovin at the time, it had a D+ for its valuation grade. And it was a Strong Buy, but if a company goes from a D+ and drops down to a D-, it will often move from a Strong Buy to a Hold. So, there’s a threshold. It is a data-driven system. Just like a report card, there’s that threshold that takes you from an A- to B+. We have that on the quant side, but I really like Giga Cloud and AppLovin in the beginning of the year. I wanted to make them my number one picks. You can see the performance has been great. AppLovin is up 79%.
Modine Manufacturing, which was actually one of the picks for 2023, made it over to 2024. That’s up 54%. Celestica is up 53%. Rolls-Royce up 34%. Meta even taking a hit today, down 10%, the stock is still up 28%, even with that hit. Abercrombie & Fitch up 27%, Bank Intesa up 27%. The two that are down are Dorian, which is an energy company, and M/I Homes, which is MHO, which has actually been a stellar stock for 2023, has come off a bit this year, but on average, you could see it’s up 37% versus the S&P, which is only up about 5%.
I’m going to take us back to our slideshow. So Super Micro, which was our top stock for 2023, this is the current picture on it. So, if you’re looking at it from a valuation standpoint, it continues to look great. This is in the IT sector, and it’s got a B- versus all the other stocks in the IT sector. It’s hard to find good growth companies in the IT sector that are not extremely overvalued.
So, that’s what really pleases me about Super Micro, really tend to, people ask me about it. I’m still, we got the Strong Buy, we like the stock. The growth is there, the profitability is there. Analysts continue to take up their revisions on this company. So, we like it.
And the biggest stock really in technology in terms of AI is Nvidia. And that is one of Super Micro’s biggest clients. So, great validation there. Year-to-date, the stock is up 161%. Over the last year, the stock is up 650%, but the valuation still looks great. So, it’s not about the performance that’s taking place. It’s about looking at the stock now. Does the valuation look good? Does the growth look good? And it does. So, that’s why it still has a Strong Buy.
PDD Holdings is the Chinese consumer discretionary company that I was telling you about. Business is similar to Alibaba and Tencent. You could even maybe draw comparisons to Amazon, but it’s got a much more interactive site. They have a lot of videos on their site as well. And people love this platform, whether you’re in China or here in the U.S., people that use it really like it. It might not have the same user-friendliness as an Amazon does, but people are very entertained on this site. The stock is up over 90% for the last 52 weeks. It still ranks number 1 in its industry out of 29 stocks, and they have consecutively been beating both top and bottom line earnings.
Modine Manufacturing, this is a company that’s involved in advanced auto parts and equipment for manufacturing. They were definitely able to leverage what’s been taking place with the trend in electric vehicles and hybrid vehicles. The stock is up 50% year to date, and it’s up over 315% for the last 52 weeks. You’ll see the valuation grade on this is a D+. So it’s a bit expensive. So, I’m actually going to take you into this.
I’m going to go back a slide or two, and we’re going to click on Super Micro Computer. So, I’m actually taking you, if you’re not familiar with Seeking Alpha Premium, I’m taking you into Seeking Alpha Premium right now. And I have clicked on what is known as the stock page or the symbol page. So, what’s great about this is, you have the quant on the right-hand side, and those factor grades tell you where the stock is relative to the sector. And if you’re uncertain what the sector is, you just scroll down a little bit.
You could see it’s in IT. This is Super Micro Computer. It’s still ranked number 1 out of 26 in the industry. And in the overall sector, out of 552 stocks in IT, it ranks number 2. The beauty of our platform is that we have a lot of contributors that write articles. So, you could go beyond looking at the Quant and you could look at a lot of the articles and they’re pretty diverse. The contributors from Seeking Alpha, if you looked at the consensus, they actually have a hold on the stock. Wall Street has it as a Buy. But I have to say, our Quant has nailed it. Year-to-date, the stock is up 177%. And you can even see today, the stock was up 4.3%. Post-market, it’s up 2%. And they will be reporting on the 30th of this month. So, in 5 days, they’ll be reporting. Going into the earnings season into this quarter, nine analysts have taken their estimates up. No analysts have taken their estimates down. And if we looked at their fiscal year estimates, 10 analysts have taken their estimates up for the year, no analysts have taken it down. So, analysts are still very, very strong in this.
DS: Hey, Steve, real quick, can I jump in here with a question?
SC: Sure. Yeah.
DS: So, you’d been talking about the contributors on Seeking Alpha and then also the Quant system. Maybe we just take a quick second as we’re diving into each of these symbols to tell just what the difference is between those two ratings?
SC: Absolutely. So, if we look at the Ratings Summary on the upper right-hand side, and it’s a good question, Daniel, because if you’re new to Seeking Alpha, people are sometimes confused about that. This is actually three independent sources that are giving a rating to a stock.
So, the Seeking Alpha analysts are our contributors. People all across the world, they’re either currently analysts or maybe they were previous professional analysts or they’re people that work in the industry. They like to write articles on companies that they’re familiar with or part of their sector. And these are independent analysts that take a look at the company’s financials and they’re familiar with the history of it, and they write research reports.
So, you could see somebody put a Sell on it yesterday. And you could see on Tuesday, April 23rd, just two days ago, somebody put a Buy on it. A couple of days before that, a different analyst had a Hold on it. So, you’re getting a divergence of different opinions here. And that’s what Seeking Alpha does. It has crowdsourced research. So, it gives people different opinions. The difference is, if you were to go to like Morgan Stanley or Merrill Lynch, they have one analyst that covers the stock and they basically toe the line. Their opinion is the house opinion and that’s the word.
With Seeking Alpha, we have a number of different analysts that could write about a stock and people can have different views. And as an investor, you could take a look at these views and see which works best for you. Of course, we have an incredible news team. So, news comes out almost on a daily basis on all stocks. And our news team does a great job keeping up with the latest events. And then with the Quant system, of course, that gets refreshed every day. We’re a data-driven process.
So, again, these are three independent sources. You have Wall Street Analyst. We’re showing the consensus of what their recommendations are. So, we’re basically looking at what Morgan has to say, Merrill, UBS, all the firms that are out there. We’ll take a look at each company. In the case of Super Micro Computer, we scroll down. You could see there are 18 professional analysts that cover the company. And that Buy is the consensus of those 18 analysts.
If you look at the contributors for Seeking Alpha, there’s actually 29 contributors. There’s actually more contributors for Seeking Alpha that write reports on Super Micro than there are professional Wall Street analysts. So, I always like seeing that. If you take their consensus, it’s a Hold. Typically, what I see from our contributors, it’s just the stock has made such a run in the last two years that they feel it’s due for a breather. The reason why we like the stock is if you click on valuation, and this is really, I’m glad I brought this up because the overall valuation grade for the stock is a B from a Quant standpoint.
A lot of the contributors and even professional analysts will take a look at the traditional P/E and they’ll see it’s pretty expensive on a trailing basis, it’s 53x. And even on a forward basis, it’s a little bit rich to the sector, gets a C-, and trades at 34x versus the sector at 23x. So, it is at a 46% Premium on a forward P/E basis. Whether you’re looking at non-GAAP or GAAP, it’s pretty similar, okay, but where does this look attractive?
Again, Daniel, comes down to one of my favorite ratios, PEG. You’re looking at the company here when you’re combining P/E with the growth rate. And that’s what makes a major difference. Okay. So, from a PEG standpoint, this is actually an A. And that has a heavy weight. Our metrics are not equally weighted. So, when we look at that total valuation grade, we back-tested all these metrics. Some have greater signs in terms of their predictability or greater history in terms of their predictability going forward. So, certain ratios will have a higher weighting than others, and PEG is definitely one that is high. So that carries that valuation grade up to B.
But when you look at Super Micro Computer on a growth standpoint, it’s like an A+ report card. Whether you look at a year-over-year or Forward Revenue Growth or EBITDA or EBIT or earnings per share, it’s A+s and As across the board. They are experiencing immense growth compared to the rest of the IT sector. So, when I’m looking at it from both growth and valuation, and it’s not me looking at it really, it’s a data-driven process that’s calculating it versus the sector. That’s where you get these grades. It’s not Steve Cress. It’s our Quant system that’s been developed.
The Quant System is telling you from a data-driven perspective, comparing it to everything else in the IT sector that the valuation looks attractive, the growth looks attractive, the profitability looks attractive. And of course, I showed you the revisions before. When you take a look at the revisions, you can see it’s an A with 10 professional analysts taking the rest of it up, none taking it down.
I think that was a very long answer to your short question about the ratings summary, but again, it’s three independent views and that’s the difference there.
DS: It was, but I just want to make sure we point out that Quant is a non-human bias approach, right? As you’re talking about, it is a computer system that runs algorithms on thousands of stocks every single morning before the market opens across a range of metrics. And that’s just different from a contributor writing what their opinion is and what they think the catalyst is and what will happen with earnings going forward. So, that’s why we offer both of those ratings here on Seeking Alpha. Steve, why don’t you take us back into the top 10 stocks?
SC: Absolutely. So, we did a Super Micro Computer here. I think we covered PDD as well. And I think what I’ll do is, I’ll take us back to the platform. And PDD, you can see it’s still a Strong Buy. This is the Chinese internet company. Unlike Super Micro Computer, it looks like we still have a number of Buys, but again, there’s a little bit of a divergence. We do have a Sell coming across from Geoffrey Seiler, Michael Wiggins De Oliveira. He’s a really good analyst. I read his material all the time when it comes out.
So, even being a Quant, I still like to hear the stories behind these stocks. And I enjoy reading the contributor articles, but PDD ranks number 1 in its industry. And, Daniel you were mentioning it’s a data-driven process. Again, we refresh that data every day. And as a result, we can actually rank these companies. And you can see it versus the overall companies that we cover. 4,500 stocks, you could see where it ranks, or you could see where it ranks in the sector or within the industry. And that’s the benefit about ranking and refreshing this data every single day, is that we could show that ranking.
Let’s go back to our presentation. Modine Manufacturing. This is the stock that I mentioned that we picked in 2023 and 2024. So, we’re going to take a quick look at that. And you could see here the valuation is getting a little bit expensive, but over the last year the stock is up 324%. Year-to-date it’s been up 52%. Again, the S&P 500 up only 5%. So, really very pleased with the stocks that we picked this year. And the other thing that pleases me is that we, compared to the S&P 500, where that market cap tilt is towards technology stocks, when you look at our stock list for both 2023 and for 2024, you can really see that there’s some nice diversification.
GigaCloud is, I’m going to click on that and show you. This is in the consumer discretionary sector. So, it’s not a technology company. A lot of people are a little bit misled by that, but Giga is for big. And their focus is big and bulky items that they ship. So, it’s a combination of a B2B company, a logistics company, and it’s really big items that they ship. So, hence the word Giga, but of the 1,200 employees, about 260 are focused on developing software for them. So, there’s a big technology aspect to this logistics company and warehousing company, as well as their B2B platform.
Modine Manufacturing is in the consumer discretionary sector, and Rolls-Royce, of course, they make huge jet engines and they’re also in aerospace and defense. Abercrombie & Fitch is in consumer discretionary. And then we have Dorian in energy and M/I Homes is, I believe that is the, I want to say, let’s see, is that industrial consumer discretionary? It is consumer discretionary homebuilding. So, really nice diversification with our list there.
So, we’ll take us to the top 10 stocks again, as I pointed out for this year up 34%. So, we’ve gone through a bunch of these names and what I will do is, I want to basically take people to the platform and show them how do I pick these stocks. So, I have a little bit here on Abercrombie & Fitch and this stock has done really well year to date. And one of the things I like to tell people is this company is not the same company that it was during the 1980s, which was basically you are a teenager wearing ripped jeans and ripped shirts. They have really reinvented themselves. And I will show you the numbers as we see it and why we like it.
So, the stock over the last 52 weeks is up 389%. Year-to-date, the stock is up 27%. You could see we have a Strong Buy on it. And look at the growth for this company. And the consumer discretionary sector compared to the rest of the stocks of the sector, it has incredible revenue growth, it has incredible EBITDA growth, and it has amazing EPS growth versus the sector. And they have done an amazing job turning themselves around. So, it really isn’t like your teenagers clothing company anymore.
You could see by looking at this picture, they’re really focused on upwardly mobile adults who have careers, who are working, and those are the people that they’re aiming for, and they have wallets and they spend money. And a lot of their people, they buy online, but they also will go to the stores as well. And these are individuals who are basically buying clothes for either the workplace or for the evening as well, but they like to look nice, and the company has done a great job reinventing themselves and it’s come through with the stock.
GigaCloud, as I mentioned, if this company were not as small as it was, it probably would have been one of my top picks, either that or AppLovin. But Giga was too small than AppLovin. The valuation at the time was a D+, and I felt it was on a razor’s edge of moving into the Hold territory. So, neither of those stocks made it, but they were definitely in the running in the beginning of the year to be our top stock.
I will click on GigaCloud here, just to give you a summary so you understand why I like the stock and I’ll show you why I like AppLovin. And then I’m going to take you to the screener and basically show you what I do you could do yourself.
So, I really like companies that are collectively strong on valuation growth and profitability. And when you take a look at the growth for GigaCloud Technology, by the way, this stock is as I mentioned, it’s up 577% over the last year. And year-to-date, the stock is up 96%, but I can encourage you, don’t pay attention to that. Okay.
What you want to look at is the stock right now with its valuation and right now with its growth. And if we take a look at the growth for this company, it is small, but it punches well above its weight in terms of growth. The year-over-year revenue growth rate for this company was 43%, the Forward Growth Rate, and Forward Growth Rate is where we could take analyst consensus estimates. So, it’s not Seeking Alpha’s modeling or growth estimates, we’re actually taking the consensus from professional analysts. And the growth rate for the revenues is 39% versus the sector at 3.6%. Same thing with EBITDA, it’s 73% versus the sector at 3.5%. And then when you look at earnings per share, earnings per share growth for this company for forward, okay, is 82%. Last year was 283%. So, they’re not going to grow quite the way they did last year, but their Forward Growth Rate from analyst estimates is 82%, compared to the sector at just 2.9%.
So, you could see why I like this company so much. They’re really at the forefront of B2B in terms of their model, in terms of warehousing, in terms of shipping. They have great software that stands out. And that’s why the company is growing so much.
I want to take us to AppLovin Corporation. So AppLovin is definitely bigger than GigaCloud is. Its market cap is $22 billion. Again, this was in the top running, but at the time, I think around December 26th, when I was looking at it to pick it as a number 1 stock for the year, the valuation was a D+ on it. And I felt like it would just be days away from going to a Hold. It actually never happened. So, what happened is the company kept growing, analysts kept taking their estimates up. And as a result, the valuation actually went from D+ to C. So, it actually became more attractive because analysts kept moving up their numbers. So, what did I see that I wanted everybody else to see? If you take a look at the revenue growth rate, the Forward Growth Rate is almost 17% versus the sector at 6.7%. If you take a look at the long-term EPS growth rate, it’s 20% versus the sector at 13.7%. So, it looks really good from that standpoint.
There are certain valuation grades that look expensive. The trailing looks expensive, but the Forward P/E, it makes it look dirt cheap. So, you’re taking a look again, this is IT, okay. You’re not going to find very many companies in the IT sector that have a P/E of 15x. This is actually at a 35% discount to the IT sector. So that’s on a P/E Forward Basis. And if you look at the PEG, it’s at almost a 60% discount to the sector. So, I really continue to like the stock, very profitable as well. You can see…
DS: I do want to point out real quick, Steve. If you see right there on the symbol page, actually, the stock is up about 3.5% after hours. We saw great beats from Google this afternoon while you’ve been talking actually about the ad market and AppLovin does ads for mobile apps. So, just wanted to clarify, I know we say IT, but this is more within that ad space and they continue to see good numbers come in.
SC: Yeah, and I’m thrilled, like, most of the companies that have reported so far that we picked as part of our top 10, actually all the companies that have reported so far have beat both bottom and top line. Again, even Meta beating both top and bottom line, but taking it on the chin today because that forward guidance was a little bit weaker and also saying that they’re going to continue to make that investment in AI, but from my experience, actually, CapEx spending is a great predictor of companies and how they do in the future. I much rather have a company where I see an increase in CapEx spend than CapEx spend being reduced. CapEx spend means their business is working and they’re continuing to put money into it. And everyone knows AI is working incredibly well.
So, I want to get to the part of the presentation where we show how we pick stocks. And this is, I mentioned it early on, it’s one of the reasons why I like this particular webinar today, compared to a lot of the other webinars is, I want to show people when I’m in December of the year and I’m picking my Top 10 stocks, how I go about it.
So, I’m going to take you to Seeking Alpha Premium, but there’s basically two things that you have to know, and that gets you started. When you go to Seeking Alpha Premium, on the left-hand side, you’re going to see something that says, Find & Compare, and within that is a Stock Screener. So, you go find it, compare it, you click on Stock Screener, and you click on Top Growth Stocks. So, I just gave away my secret here, okay.
Now, everybody will have the ability to do this. So, I’m going to go to our premium platform, and I’m going to scroll down, and this is what I showed in this slide deck. So, you’re simply going to click on Stock Screener here. And when you get to the Stock Screener, you can create your own screens, or you can look at screens that we have pre-made for you. As you could see, I have a lot of my own screens that I keep. And then there are the Seeking Alpha screeners.
So, if you go to Top Growth Stocks, okay, this is what I do December of every year, I have to pick my top 10. I go to Top Growth Stocks and I click on that. And lo and behold, you’re still seeing many of the same names. And we refresh this every single day. These are the stocks today, okay? If you were going to pick it for the next year, that looked good. We have the number 1 stock is GigaCloud Technology, which we picked in the beginning of this year. Super Micro Computer, which we picked in the beginning of last year, was also my number 1 pick. Powell Industries, which is in Alpha Picks. AppLovin was in the list this year. Abercrombie & Fitch in the list this year. Modine last year and this year.
Then if you look at number 7, this is a new name, SkyWest. Number 8, this is probably going to surprise a lot of people. They may actually fall off their chairs on this one, General Motors, okay, comes up number 8 on the screen. Number 9 is Viking Therapeutics. And number 10 is Harmony Gold. And I think everyone knows gold has been doing incredibly well. And then I’ll give a shout out to Toyota Motor Corporation.
And Daniel, I’m not sure if you remember this. The haters really came out. Probably, I think it was last June, I wrote an article where I basically said Toyota trumps Tesla. And I think there were like a thousand comments just ripping me apart for that article, but we picked Toyota at that point over Tesla. And of course, as you know, it really worked out in our favor.
I’m going to open up Toyota here. And you could see Toyota is up 72% for the last 52 weeks. Year to date, the stock is up 21%. So, this is coming up high. If I put in Tesla. And we looked at that one year performance, it’s absolutely flat. So, I’m really pleased with that recommendation that I put out. And what I want to highlight is, even in this point of time, Tesla has not done well year-to-date. Toyota has. Tesla is down 36%, but I want to take you to the right hand side where you could see why we don’t like Tesla from a Quant standpoint. I mean, it’s a Hold recommendation.
So, if you own it, that doesn’t necessarily mean get out of it, but you could see the valuation grade for Tesla is an F. It’s incredibly overvalued to the consumer discretionary sector. Profitability is A. So, they are making money compared to many other companies, but if you look at the revisions, it’s like every single quarter you have analysts taking their estimates down.
So, let’s take a look at this. For Tesla, in the last 90 days, 30 analysts have taken their estimates down for Tesla. None have taken their estimates up, none. None. And going to the quarter, it’s the same thing. There hasn’t been one upward revision for Tesla in the last 90 days for the quarterly estimate. 16 have taken it down. If we look at Toyota for that. The same card, we don’t have it here. It’s an ADR, so it’s missing some of the revisions at this point. Sorry, but that is an impressive stat, and it’s not coming through.
So, I’ll take us back to the card though and you will see though for some reason the data points are missing. See…
DS: No, you got to go to TM.
SC: I think we have 90 billion data points on our platform. Every once in a while, some data points just going to miss.
DS: No, Steve, it’s there. Click on TM right there.
SC: Alight, I’ll start it again.
DS: Yeah.
SC: Oh, I think we were just looking at the ADR.
DS: You’re on the symbol page. There you go.
SC: There we go. Thank you for pointing that out. Okay. So, well, here we have one taking it up. Again, it’s for the ADR, a lot more client, analysts look at the underlying or what we refer as the ordinary shares. An ADR, which is TM trades on the New York Stock Exchange. And ADR is actually an American Depository Receipt. And that reflects the underlying shares that trade in Japan. And more analysts are covering the ordinary shares than the ADR, but as you could see, it has still worked out very, very well for the stock.
As I showed you on Tesla, the factor grades looked very, very poor, but for Toyota, A+ for growth, A for profitability, A for momentum, and A+ for revisions. So, taking us back to – how we picked that top 10, just again, how easy it is. Every year, you could be your own Seeking Alpha Quant person. You just go to Stock Screener, scroll down to the Seeking Alpha screens, click on Top Growth Stocks, and you could look at this every single day it gets refreshed. You could look at it monthly, you could look at it quarterly.
And I actually often recommend that to people. If they want to bring some new names in, take a look at it every month or every quarter, and you could see we have some fresh names coming in. And here it would be SkyWest, General Motors, Viking Therapeutics, Harmony Gold, scrolling down to Toyota Motor, Wells Fargo, Trip.Com, Royal Caribbean, a lot of these stocks. If you just look at the investment characteristics and the factor grades on the right-hand side, you could see they have stellar report cards versus other companies in their sector.
Now, Daniel, a lot of people actually don’t want to do all that work. Many people have said to me, can you just pick the stocks for us? That is a major reason why we created a product called Alpha Picks. We launched it in July of 2022. People like to do their own research, but there are also a lot of people who are just tell me what to buy. And with Alpha Picks, twice a month, we give you our favorite Quant stocks. And again, this performance that you’re looking at here is since its inception, which is only July of 2022, but you could see our top Quant picks for that period are up 116% versus the S&P for the same period up only 33%.
And what we do, as I mentioned, twice a month, we’ll send out an email or there’s a separate platform for Alpha Picks that you can go to. We send out what our picks are. You get an article that is actually not too long. It gives you the information that you need to know in terms of what are the core drivers behind the stock that we like. What does the growth look like? What does the valuation framework look like? What does the profitability look like? What is our thesis? And believe it or not, we usually hit it in less than two pages. And a lot of people like that brief summary. They get it twice a month.
When there are a number of stocks in the portfolio from twice a month occasionally we have stocks that go to a Hold and they could hit a period where they’re a Hold for 180 days. At that point, we will remove it from the portfolio or if a stock hits a Sell, it gets removed from the portfolio or if it’s acquired. But for the most part, Alpha Picks is designed for the long-term investor who really just wants to pick stocks and add it to their portfolio. And we give you our top Quant ideas out there twice a month.
Just to give you a little bit of a greater clarity into that performance to show you that it’s fairly consistent. As I mentioned, the timeframe is a little bit different. When I took this snapshot, the Alpha Picks from inception was up 128% versus the S&P up 37%, but if we look at it on a 6-month basis, Alpha Picks is up 57% versus the S&P up 20%. On a 3-month basis, recently it’s been doing very, very well, up 31% versus the S&P up 9.3%. And during March, it was almost double the performance of the S&P.
The last 4-weeks has been tricky. I think as you could say a fear factor has been climbing in terms of inflation being sticky and interest rates being higher for longer, the market has been a little bit defensive. They’ve taken profits. They sold off some technology stocks and most of the Alpha Picks stocks have done incredibly well. In fact, I think we have 34 stocks in the portfolio now. 6 of the 34 stocks are up over 100% and 7 of the stocks are up between 50% and 100%. So, just about 50% of the portfolio is up more than 50%, which is almost unreal to get that kind of performance, but that’s what we’re doing. We’re bringing forward our very, very best quant ideas.
Just for other means of comparison, the S&P, if you’re looking at that as an index, you can consider that a passive investment. We want to compare Alpha Picks since it’s an actively managed product. It’s data driven, but it’s actively managed. We compared it to the largest active mutual funds that invest in stocks. There’s Baron Partners. That mutual fund is $6 billion and Polen Growth, that is an $8 billion fund. And you could see the one-year performance for Baron is up 11.6% and the one-year performance for Polen is up 33%, Alpha Picks up 98%. So, whether you’re comparing it to the S&P as a benchmark or two of the biggest mutual funds in the business that invest in stocks, Alpha Picks has been delivering.
Here are a couple of the stocks that went into Alpha Picks. Super Micro was added in November of 2022, and the stock is up 968%. We have Modine Manufacturing, where it’s up 324%. M/I Homes, which has not done that well this year, went into the portfolio back in October of 2022. It’s up 200% from the time that it hit Alpha Picks and AMR is up 171%. I don’t want to give away our entire portfolio, but those are some of our top winners. As I mentioned, you have a total of 17 stocks that are up more than 50% in that portfolio.
And Daniel, I think that really brings the slideshow to a conclusion. Let me ask you, do you have any questions at all?
DS: I do. And I was going to try to squeeze some in. I know we’re coming up on time, but in regards to the Quant system, there’s been a few questions coming through about how should someone approach seeing the rating change and knowing when to sell?
SC: Okay, a really good question because people often will say, I want to mimic that performance. So, I see for your history, when you go back, you’re only looking at the Strong Buys. And that history that I show, it’s got incredible performance, but we’re not trying to demonstrate this as an investment product. It’s not an ETF or a mutual fund. What we’re trying to show is that the strategy works. And that strategy is looking for stocks collectively strong on those investment characteristics that I mentioned.
My guidance is, as an investor, if most investors are long-term investors, you buy a stock, keep it in there, if it just dropped to Hold, maintain that stock in your portfolio, and then decide the same way we do with the Alpha Picks. If a stock’s been a Hold for 180 days and it’s not making a major move at that point, you can probably take it out of your portfolio, but a lot of times, stocks that are a Hold still have great fundamentals, and that’s what you’re looking at.
Look at those Quant grades. So, even if it’s a Hold, if it’s got really strong growth, if it’s got good profitability, if it’s got good analyst revisions, keep it in there. Sometimes that valuation grade could be in that D+, C-, D territory. And like I said, it’s a data-driven process. It’s like being back in high school or college with your report card as a threshold. And that threshold will take you from C or C- down to D. So, we got to have a threshold, but I often encourage people to keep that stock in there as a Hold.
DS: Yeah, really well said. And also I just want to mention as well from our previous webinars where we’ve talked about this is the Quant system is an informational tool, right? It is that non-human bias approach saying, hey, you might want to relook at the data on the stock you’re holding. And then you can go in and you can look at the values of all the metrics and do some reading of other contributors of the stocks that you hold. And then you can determine, maybe you do want to take it out of your portfolio or maybe you want to wait a little bit longer. It is just that additional tool for you here on Seeking Alpha Premium.
So, let’s get into another question here.
SC: Yeah, absolutely.
DS: Let’s see here. Do you also take Fed policies and forecasts based off of Fed policies and macroeconomic news?
SC: You know what? It’s a good question because what we do look at and what we incorporate into the model are analyst estimates. And we’re looking for the consensus growth estimates for revenue, for earnings, for EBIT, EBITDA. We bring those into the model. And many analysts will take, especially when they’re looking at it on a sector basis, there are sectors that will be affected and impacted by higher interest rates.
So, those analysts are making the adjustments to their models. As a result, when we’re bringing those consensus estimates into our model, indirectly, we do bring that into the model, but we don’t have an overlay for that. Having said that, when it comes to dividend grades, it’s a little bit of a different story. We actually do have macro overlays for dividend grades.
DS: So, why don’t we talk about it a second? We haven’t really talked about the dividend side of the investing. When you go and you pull the Top 10 Stocks for the year, are you looking at the dividend as well or do you just mainly focus on the revenue numbers and some of the other metrics you were looking at today?
SC: Really, I want to pick stocks that are going to be winners. So, when it comes to dividends, I don’t think using dividends is a good tool because a lot of times people are very focused on yield and they want to get like 3%, 4%, 5%, 6% yield, you might be retired and you’re counting on that consistent income coming in. When it comes to picking stocks, dividends don’t play as much of a factor.
As you know, we back-tested just about every factor that’s there. I will say the dividend growth rate is often a good factor to look at. So that’s at the rate of growth that a company’s increasing its dividend, but a lot of times, you got to have a very strong dividend growth rating or yield is going to be like 0.5% or 1%. So, not always attractive to dividend investors because often they like to get that higher yield in there.
When I do look at dividend investing and when I do dive into stocks with dividends, I’m looking for a combination of yield and dividend growth and dividend safety. That’s what I’m considering. However, when I’m looking at that top 10 list, I’m purely focused. I want to pick the winners. And as I showed you, I go to that top growth screen that I created, which of course, value is a component to it, but it’s got a little bit more tilt towards growth. And that’s how I pick the stocks.
DS: All right, so talking about the top growth stock screener that you mentioned just now again. There’s been a few questions here, so I want to get to it. When you’re pulling your top 10 for the year based off of that screener, can we ever expect to see small-cap or mid-cap stocks in there? Or do you have a threshold when it comes to market cap size of companies that you look for?
SC: So, when you look at that screener, let me take you back to that. I want to share my screen with you. And we’re going to go to top growth. What’s awesome about these screeners is you can create your own screeners. So, when I created this screen, and you can actually read about it, when you go to the screeners, a lot of the ones that I created for top value stocks or top Quant stocks or top tech, there’s a little bit of information on it and it can tell you how I sort of designed the screen.
For top growth stocks, I’m looking at market caps that are a billion plus. I’m looking at ratings that are Buy to Strong Buy, and I’m looking at growth that’s A+ to A. So, you could actually go in and edit these filters. And if you want to have all market cap, you just take that down there and you can see that search actually changed. So, when I was at a billion, well, that’s 100 billion. Let’s put 1 billion in there and you’ll see how many companies are there.
So, there’s 129 and if I take a look at a market cap that is even below 25 million, it goes from 129, 199 stocks. So, you can change the market cap criteria yourself, or you could change the growth. If I look at growth and I say, okay, I’m happy enough with companies that have a growth rate of B or higher, the number jumps from 199 to 484. So, you can easily change that yourself. And when you scroll down, all of a sudden, so I have the market cap set at a billion. And that’s because there’s a lot of individual investors on our platform, but there’s also institutional investors on our platform. We have professional portfolio managers, we have professional traders, and sometimes if a market cap is small, it’s not investable for them. So that’s why when I do this top stock list, I’ll usually have it set a billion. So, there’s a little bit more liquidity. But you could change it up and you’d see a lot. There’s many, many more companies that come onto the screen when you do that.
And you could even have additional filters, say you wanted to do just like the U.S. and no ADRs, you can click on country or say you wanted to have companies that had strong profitability as well. So, we would go to advanced filters and click on profitability. Now, you can pick certain margins or let’s just do it by the Quant Factor Grades. Let’s add profitability there. So, I just did that. So, let’s say we want companies that are also profitable and say the B category. And again, it would be B, this is versus the sector. So, let’s just click done there and let’s see what the list looks like. There’s 256 now. So, that’s down from what it was. So, let’s tighten it up.
Let’s go back to that $1 billion range. Let’s add a number there. Okay. So, we know we’re back to a billion dollar market cap, but we’re looking at companies where we’re dropping the growth down to B and we want companies that are profitable as well. Click done. And the list still looks pretty similar. So that just tells you I’m picking pretty good stocks anyway. Most of my companies are really profitable. Most of the companies have a good valuation. So again, the sweet spot stocks that are collectively strong on value, growth, profitability, momentum, and EPS revisions.
DS: Amazing. I do want to point out real quick too – jumped off the screen, sorry. Once you’ve created those screens, if you do have a Seeking Alpha Premium subscription, you can click that little Save As button at the top, give it a name and always go right back to it later once you have dialed in the filters for exactly what you want. So, I think that’s really cool. That’s how I personally use it, because I do mess with market capitalization, revenue forward growth, you can add all of those metrics in there, and just create that or create it into a portfolio, you see the portfolio button there on the right side as well. So…
SC: Yeah, and these are all the screens that I created. So, you could see, I have my running with the bulls. I have high yield, high risk stocks. I have hidden gems. I feel like I create a new and different screen every single day, but then again, we have the ones that have been pre-built for people and that’s the one that I use at the beginning of every year. So, if you want to do the work yourself, this is a great way to do it. If you just want to get my top picks, Alpha Picks is the way to go.
DS: Alpha Picks is definitely the way to go. You and Zachary Marx have put together a great service there. Highly encourage everybody to go explore that as well. Well, Steve, I’ve taken too much of your time. We are 7 minutes over, so I’m going to go ahead and wrap it up here. Thank you so much for the great presentation. Recapping the 2023 portfolio, which is also still continuing to perform quite nicely, actually, which is interesting. And then now the 2024 post Q1 earnings. And we look forward to checking in after the next earnings season again. So, Steve anything you want to say before we jump off?
SC: I just want to thank everyone who’s a subscriber to Seeking Alpha and to Alpha Picks and I want to thank everyone for those who follow me and our articles. And when we publish these lists, I hope it continues to help you going forward. And it’s just, this was a great webinar today. Thank you so much for having me.
DS: Yes, thank you. And again, everyone go follow Steven Cress on Seeking Alpha. He has his own author profile. They’re always putting out great topics. You have like top 5 AI stocks, you have top ETFs, you have top small-cap, you do everything. So, I know I always look forward to them. And everybody if you go follow him there they will show up via Push Mobile and in your inbox and via email. So, another just little perk of the service there.
So, everyone thank you so much for taking the time to either watch the replay of this webinar or joined us live and we’ll see you in the next webinar. Take care and be safe out there.
SC: Thank you.
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