So you’ve just downloaded the Equities Lab software and you launch it, eager to start screening stocks. If your experience is anything like mine, then you’re probably intimidated and a bit overwhelmed by all the available options and the Equihack language. You spend about 10 minutes playing around with the software trying to find all the secrets and tricks to best help you find what you’re looking for in the market. While it does at first seem intimidating, after watching the four quick start YouTube videos provided on the welcome page, I was quickly able to get a working understanding of the software and all the insight it had to offer.
The first screener that caught my attention was the Benjamin Graham Count. I’m personally a big fan of Benjamin Graham’s The Intelligent Investor. The book lays out the principles of investing that have been proven time and time again to be among the safest and most reliable ways to invest your money for steady returns. These same principles are heavily promoted by the world famous investor Warren Buffet who has a current net worth of $73.1 billion.
However, the Benjamin Graham Count is one of many ways to find the right companies to invest in. The Equities Lab software offers 23 premade screeners for a variety of market analysis. If you’re interested in a certain stock already but you would like further analysis on it, you can do so by simply typing the ticker into the “Research Stock” tab. Let’s go with Nike for instance. (NKE)
Here you can see the basic performance of Nike vs the S&P 500. One chart can only tell you so much, but luckily Equities Lab offers many other variables you can visualize on the chart. Let’s try some out.
In this chart analysis I broke down the stock to its performance in a year to date. You can clearly see that Nike not only underperformed the S&P 500, but underperformed it’s industry overall. The stock itself trails the P/E ratio and I personally think has a lot of room for upside potential in the coming year.
With all these analytical tools that Equities Lab has to offer, it’s hard to pick a favorite one. Through my personal experience with Equities Lab, I’d have to say being able to create your own stock screeners is my favorite feature. In the screener below I narrowed my search down to find companies (Banks) with a Market Cap below $2 Billion and a PE ratio greater than or equal to 25. With the new administration coming into power in 2017 I expect Dodd Frank to be tweaked to give smaller cap banks less regulation and allow them to loan out more money, and with the Federal Reserve anticipating 4 rate hikes in 2017 this makes for some powerful upside potential for these stocks.
When you look at the chart of the screener vs the S&P 500 you can clearly see that small cap banks began to exponentially outperform the S&P 500 in late October/early November. This trend was due to strong economic data coming in combined with expectations of the new administration.
Overall I’d have to say Equities Lab surprised me with the extensive amount of analytical tools it has to offer paired with the sophistication of very smooth running software. The software is perfect for both those with market experience, as well as students who are just beginning to learn.