stock picks: Stock picks of the week: 3 stocks with consistent score improvement and upside potential of up to 25%

Synopsis

At a time when everything on the street appears good and green, there is a case of being selective. The reason, if it is in a raging bull market, the street never stays in this all good and green mode forever.when the street starts to become selective, it is stocks where there are some improvement in the business operating matrix tend to weather the storm better. So as an investor, one needs to look at every sector and company and their operating and valuation matrix separately. These selected stocks depict a strong upward trajectory in their overall average score which is based on five key pillars i.e. earnings, fundamentals, relative valuation, risk and price momentum. This implies that there has been a significant improvement in their market outlook in the given time frame.

Fundamentals of an industry have different cycles as compared to market cycles. So while the market might be bullish, don’t ignore what is happening on the fundamentals of an industry as that will finally determine the stock price. How can margins of FMCG companies which is focussed on food and beverage space, improve at a time when sugar and other agro commodities prices are moving upward. Because, these commodities are the basic raw materials

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