Kaizen Companies: 3 Best of the Best PowerRatings Stocks
Dr. W. Edward Deming is the professor and statistician who is credited with guiding top level Japanese management toward one of the first corporate quality and improvement movements back in the 1950s.
Boiled down to its philosophical base, Dr. Deming taught that the secret to economic prosperity would require every company and individual to commit to constant improvement. The Japanese have a single word for this concept, kaizen, meaning good change. The kaizen idea makes perfect sense when applied to stock picking.
One way to use our Stock PowerRatings is to focus on those stocks that have experienced the largest daily gains in the rankings. Improving or kaizen companies in other words. Particularly, those companies that move higher by 2 or more levels and are above 7 on the day they are considered. The simple rule is the larger the PowerRatings change to the upside, combined with today’s higher ranking; the better the stock has performed over the next 5 days.
These truly kaizen companies have been statistically proven to outperform their brethren by an amazingly significant margin over the short term. Stocks earning an 8 rating have shown to outperform the average stock at a 5.8 to 1 margin. Those with a 9 rank outperform at a 10.1 to 1 margin and the highest ranked stocks with a 10 Short Term PowerRating outperform at 14.7 to 1 margin.
Here are 3 PowerRatings kaizen style companies poised for short-term gains right now:
Helicos BioSciences
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HLCS |
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PowerRating): Stock PowerRatings 10
Buckle Inc
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BKE |
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PowerRating): Stock PowerRatings 8
Ennis Inc
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EBF |
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PowerRating): Stock PowerRatings 8
Learn more strategies for trading stocks in the short term with a free trial to our PowerRatings! The highest rated stocks have outperformed the average stock by a margin of more than 14 to 1 after five days! Click here to launch your free PowerRatings trial today!
David Goodboy is Vice President of Business Development for a New York City based multi-strategy fund.