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I’ve been trying out “TipRanks Ultimate” (which includes everything TipRanks Premium offers and more) to find investment ideas and analyze stocks.
Is it really worth it?
Let me share with you my experience and help you make an informed decision.
How I Use TipRanks To Find Good Investment Ideas
Here’s how I use TipRanks to find investment ideas.
First of all, I use its stock screener to find stocks that meet my criteria.
For example, below is one of my favorite stock screens.
I am interested in stocks with Smart Scores (Outperform), Analyst Consensus (Strong Buy), and Positive Insider Signals (i.e. insider purchases).
So, what is TipRanks Smart Score?
The Smart Score is a proprietary quantitative stock scoring system created by TipRanks.
It gives stocks a score from one to ten, based on 8 market key factors.
The lowest score is 1 and the highest is 10.
Scores “8”, “9” and “10” mean “outperform” while scores “1”, “2”, and “3” mean “underperform”.
These 8 key factors include the following:
- Wall Street analyst ratings
- Corporate insider transactions
- Financial blogger opinions
- Individual investor sentiment
- Hedge fund manager activity
- News sentiment
- Technicals
- Fundamentals
To find potential investment ideas, I look for stocks with a Smart Score of at least 9 and above.
Here’s one of the stocks I found interesting – Energy Transfer.
I can see the analyst consensus is also Strong Buy.
What I like even better is to see large insider purchases.
I can see from the Tipranks Platform that Corporate Insiders have bought shares worth $28.6 Million in the Last 3 Months (as of my writing).
Personally, I see insider purchases (especially purchases that are $5 million and above) as a very strong buy signal.
The more they buy, the stronger the signal.
Also, the more insiders from the same company buy, the stronger the signal.
The converse is true as well.
If insiders start to sell, it means they think the stock has limited upside.
This could be a helpful sell signal for investors to exit their positions.
For example, Meta (previously Facebook) director bought shares worth around 20 million dollars when Meta’s share price was around $100 in 2022.
After that, Meta’s share price tripled within one year.
Insiders, especially C-suite officers, are the ones who have privileged information about the company’s finances and operations.
Recently, you probably have seen the news of Meta insiders selling shares.
It’s not a good signal to buy Meta shares.
If you have existing Meta shares, we think that you could start thinking about whether or not you want to follow these insiders and trim your position.
The reason why I like to see what Insiders are doing is that they are the only people who know what is really going on in the business.
By the way, try not to place too much importance on what they SAY, but pay attention to what they do with their own money.
If they think the business is hugely undervalued, they would use their cash to buy more shares.
Recently, I have been tracking several big insider purchases (e.g. Iovance Biotherapeutics and Nuvation Bio).
Iovance Biotherapeutics is one of them where one of its directors bought $26.5 million worth of shares.
By the way, some of these companies with big insider purchases might not be profitable companies.
So, it’s not wise to go ALL In purely based on this signal because these stocks could be very volatile and might go down in the long term.
Personally, I might only use a small amount of money (that I can afford to lose) to play (i.e. swing trade) these kinds of stocks in the short term.
Below is the stock chart.
Since its Oct low, it has gone up by more than 200% in just 3 months.
Another one of my favorite sources of investment ideas is to look at what top fund managers and legendary investors have been buying recently in their portfolios using TipRanks.
For example, one of the highly popular fund managers with a proven track record is Nelson Peltz.
Since 2013, his fund has had a market-beating return of 546.41% compared with a return of 314.54% for the S&P 500 over the same period.
Its Sharpe Ratio is an astonishing 8.35. (A higher Sharpe Ratio means better returns relative to the risk taken)
A Sharpe Ratio of 3 or higher is considered excellent while a Sharpe ratio of below 1 is considered bad.
By looking at his recent buy and sell activities, I noticed that he increased his holdings in Walt Disney by more than 400%.
This position in Walt Disney now accounts for about 40% of his portfolio currently.
He is an activist investor, which means that his style is to buy a significant stake in a publicly traded company in order to change how it is run.
Mr Nelson Peltz has been trying to get a seat on Walt Disney’s Board and wants to get Walt Disney to cut its costs and turn its streaming business profitable.
Apart from Nelson Peltz, I can see from the TipRanks Platform that other famous fund managers such as John Kim and Christopher Niemczewski) also initiated a position in Walt Disney stock.
This makes me more interested, and I am going to put Walt Disney on my watchlist.
Other Useful TipRanks Tools To Find Stock Ideas
There are also other useful tools provided by TipRanks to find good stock ideas and ETFs.
For example, if you are a dividend investor, you will find the following tools very helpful:
- Best Dividend Stock List
- Best Highest Yield Stock List
- Dividend Aristocrats
- Dividend Comparison Tool
- Dividend Calendar
If you are looking for ETFs, TipRanks also has an ETF screener to help you find the best ETF that suits your criteria.
Generally, you should go for ETFs with a low expense ratio with a high Smart Score.
For investors, it’s also important to look at similar stocks and compare them to find the potentially best-performing one.
TipRanks makes it easy for you to compare similar stocks side by side in terms of stock ratings, fundamentals, and technicals.
Lately, ChatGPT has been one of the hottest topics in the investing world.
Below is an example of a comparison of all the ChatGPT-related stocks.
TipRanks Stock Analysis
Once you have found some interesting stock ideas, you can use the TipRanks platform to research them.
TipRanks provides financials, analysts’ forecasts, charts, earnings, dividends, and peer comparisons.
All these data and information can be found on other stock research and analysis platforms.
What is unique to TipRanks are the following:
- Risk Analysis
- Stock Report
- Insider Transactions
- Hedge Fund Trading Activity
- Options Data
- Website Traffic
- Crowd Wisdom
What I find most useful is “Risk Analysis”.
It shows ALL the risks that can affect the business and impact the stock disclosed by the companies in their yearly and quarterly earnings reports.
These risk factors can be used by investors to consider the “Worst-Case Scenario” before investing.
For example, one of the Sales and Marketing risks disclosed by NVIDIA is that they receive a significant amount of revenue from a limited number of partners and distributors and they also have a concentration of sales to end customers.
If they lose or are prevented from selling to these end customers, their revenue could be adversely affected.
So, how likely could this happen?
If this happens, what kind of potential revenue losses are we talking about?
Is the potential upside worth the risk?
These are some of the questions worth asking.
TipRanks Pricing Plans
There are two different pricing plans:
- TipRanks Premium: $30/month
- TipRanks Ultimate: $50/month
As a member of TipRanks Premium, you get access to the following:
- Stock Analysis Tools (Smart Score, Analyst Rating and Price Target, Individual Investor Sentiment, Insider Transaction, Hedge Fund Activity, Stats and Charts, Similar Stocks, etc)
- Investment Ideas (Trending Stocks, Top Smart Score Stocks, Analyst Stocks, etc)
- Research Tools (Stock Screener, Penny Stock Screener, Stock Comparison, Earnings and Dividend Calendar, Dividend Calculator, Economic Calendar, etc)
- Full access to news & analysis
- Smart Portfolio (Track and Analyze Portfolios, Portfolio Comparison, etc)
- Daily Analyst Rating Updates
- Follow Up To 5 Experts (Top Analyst, Top Corporate Insider, Top Hedge Fund Manager, Top Financial Blogger, Top Individual Investor, etc)
- Email Alerts (up to 30 Stocks)
- Data Exports
The difference between TipRanks Premium and TipRanks Ultimate is that with TipRanks Ultimate, you can also have access to the following:
- Risk Factors ( see which risk factors the companies are reporting to SEC, including changes from previous reports)
- Website Traffic (see how website traffic correlates to stock price changes)
- Website Traffic Screener (see which websites are gaining or losing the most traffic)
- Insiders’ Hot Stocks ( see stocks that exhibit strong buy indicators based on corporate insider transactions)
- Daily Insider Transaction Updates
- Follow an Unlimited Number of Experts
- See Ranking of Wall Street Research Firms
- Adjust How Experts Are Ranked Over Different Time Periods
- Unlimited Email Alerts
Is it worth getting TipRanks Premium and Ultimate?
TipRanks Premium is good enough to help you find good investment ideas as well as analyze stocks that you are interested in.
But, if you have a bit more budget, TipRanks Ultimate is worth it because of the additional tools such as Risk Factors.
[Limited Time Only] Claim Your 50% Off TipRanks Premium
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