Our editorial team follows a highly structured process when choosing financial products and services. This allows us to provide a cohesive and thoughtful selection of options based on a specific criteria.
Curious about how we do this? Keep reading to learn about how we rate and review various financial products.
How we identify top stocks
Based on the ValueWalk mission, you’ve probably understood that value investing is at the core of our brand’s initiative.
Therefore, we don’t cut corners when curating stock selections, such as in our recent guides to the best AI stock pickers and best stock predictors.
The following section details our stock selection process.
Stock methodology
We consider a wide range of factors before choosing the best (technology) stocks for investors. We take into account the following:
- Stock performance: One of the key factors we look at is the performance of the stock. Specifically, we want to know if the stock has a history of outperformance, consistently beating its benchmarks over the long term. We generally look back at least 10 years and favor a longer term view than a shorter term snapshot.
- Earnings growth: We examine how consistent the company has been in generating year-over-year earnings growth. Ideally, we are looking for stocks that generate double-digit annual earnings growth on an annual basis over a multi-year period.
- Reasonable valuations: As these are technology stocks, they are going to generally have higher price-to-earnings ratios than value stocks or stocks from other sectors. That said, we want to ensure that the P/E, price-to-sales, and other valuation measures are not unusually high – that is well beyond historical ranges. This could signal that factors other than revenue or earnings are driving the price higher and may not be sustainable.
- Market share: It is important to consider how dominant the company is in its given market or markets. Is this company a leader in its market? Is it among the leaders in multiple markets? Many of the top stocks, like Amazon, for example, are leaders in multiple markets. Market leaders are generally going to have strong earnings power. Also, is the company gaining, or losing, market share?
- Competitive advantages: A key to a company’s enduring success is its competitive advantages. We look at whether or not the stock has advantages over its competitors, whether its scale, pricing power, a product or service that is best-in-class, or a moat that makes its advantages hard to overcome or penetrate.
- Growth catalyst: In addition to any competitive advantages, it is important to look for other growth catalysts that could spur the stock higher. Did it expand into new markets through an acquisition, are there new or pending regulations that could help or hinder the company, are there new products coming, are there changes in the industry? These are just some examples.
- Capital/financial strength: The foundation upon which a company can grow is its financial or capital strength. We look to see if it has a significant, and growing, amount of operating cash or free cash flow, because that will allow it to invest in its future growth or navigate downturns. Also, we look to see if its debt is reasonable so that a disproportionate amount of earnings isn’t going to pay down debt.
- Efficiency: Another key consideration is how efficient the company is in turning a profit. While all industries are different, the operating margins and profit margins will give you a sense of how much a company is spending to generate profit. Higher, and rising, margins mean the company is operating more efficiently.
- Stable leadership: We look at the leadership of the company and how stable it has been over the years. While a lot of turnover in the corner office is a sign of instability, the best companies tend to have longer tenured CEOs and seamless succession plans.
- Analysts’ estimates: While we don’t solely rely on what Wall Street analysts think of a company or stock, we certainly gauge their consensus recommendations and price targets in determining the best stocks.
How we assess cryptocurrencies
When selecting crypto assets, our expert review team compares criteria to determine whether it’s an attractive coin for specific types of investors and their risk appetite and interests. Additionally, we consider the pros and cons of each coin.
In doing so, our research process includes consultation with several in-house cryptocurrency and investment experts with more than a decade of combined experience.
Depending on the token, these attributes could include:
- Utility tokens: A utility token is a token that serves a specific function within a blockchain ecosystem. These tokens are integral to driving activity within decentralized applications (dApps) and incentivizing user participation.
- Stablecoin tokens: Stablecoin tokens are pegged to asset-backed securities, such as fiat currencies that minimize volatility. They provide a reliable store of value and are often used for transactions, remittances, or as a gateway to other cryptocurrencies.
- Privacy: Cryptocurrencies focusing on privacy enable anonymous transactions. These systems enhance user security and confidentiality by using advanced cryptographic techniques, such as zero-knowledge proofs.
- Consensus mechanisms: Different consensus mechanisms, like Proof of Work (PoW), Proof of Stake (PoS), and Delegated Proof of Stake (DPoS), determine how transactions are validated. Each offers unique trade-offs in terms of energy efficiency, decentralization, and speed.
- Scalability: Scalability measures how well a blockchain network handles increased user activity and transactional throughput. High scalability ensures the network can maintain low fees and fast processing times as it grows.
- Security: A robust cryptocurrency cyber security protocol includes features like advanced encryption, decentralized architecture, and regular updates to address emerging threats.
- Market cap: The market capitalization of a cryptocurrency reflects its total value, calculated by multiplying the circulating supply by the current price. As with traditional assets like company stock, a higher market cap often indicates greater stability and investor confidence.
- Supply: A cryptocurrency’s supply is divided into maximum supply, total supply, and circulating supply. These metrics affect scarcity and potential value, with limited maximum supply often contributing to higher demand.
- Liquidity: Liquidity refers to how easily a cryptocurrency can be bought or sold without significantly impacting its price. High liquidity ensures smoother transactions and reduces the risk of extreme price fluctuations during trades.
- Compliance: Compliance ensures that the cryptocurrency adheres to legal standards across various jurisdictions. Trust built through adherence to regulations enables smoother integration with traditional financial systems and broader adoption.
- Community support: An active and engaged community, including users, developers, and enthusiasts, reflects the health and longevity of a cryptocurrency. Vibrant community support drives innovation, resolves issues, and enhances network resilience.
This approach ensures multiple aspects of a project are scrutinized when determining its likelihood of the project being among the best.
How we evaluate online casinos and sportsbooks
When assessing the best online casinos and sportsbooks, we consider the following key factors:
- Licensing and regulation: We prioritize platforms that are licensed by reputable authorities for player safety. We think it’s pointless recommending sites to players if we aren’t satisfied with that site’s integrity. Reliable licensing guarantees legal compliance in the relevant jurisdiction(s).
- Game and betting variety: We look for a diverse range of games and betting markets to enhance player options. At the same time, we recognize when a platform stands out in a specific niche. Whether a site has a broad offering or is best-in-class for its particular product, we try to direct players towards those platforms that suit their play styles and interests.
- User experience: Platforms should be user-friendly, with smooth navigation and mobile compatibility. Most of our visitors use a mobile device to access ValueWalk, so one thing we’re particularly hot on is the mobile-friendliness of the platforms we rank and review.
- Bonuses and promotions: We strive to provide as much information as possible about each reward, bonus, and promotion. We firmly believe that bonuses and promotions for both new and existing players should come with transparent and achievable terms.
- Payout speed: Fast, reliable withdrawals are essential for a positive user experience. No-one wants to hit the jackpot only to sit on customer service chatbots for days trying to withdraw. We take into account user experience data from various sources when building a picture of an operator’s payout speed.
- Payment methods: A variety of secure payment options, including crypto, is key for convenience. However, it’s not always a simple case of more equals better: We dig through the small print to work out which payment methods are hassle-free.
- Customer support: We value platforms with responsive, accessible, and helpful customer service ideally across multiple channels. iGaming operators have to be able to deal with their customers fairly and with empathy in order to rank well on ValueWalk roundups and reviews.
- Security and fairness: Strong encryption and fair games ensure a safe, trustworthy environment. We look for casinos that offer games supported by audited Random Number Generators (RNGs) and similar technology that guarantees fair play.
- Reputation: Positive player feedback and swift issue resolution indicate platform reliability. We soon hear from players if sites are slipping below the high standards we expect from them and adjust our information accordingly.
- Live betting and streaming: We check the quality of every site’s live betting features where they are offered and provide expert guidance to prospective players on what to expect.
- Responsible gambling: Gambling should be a fun leisure activity, not a risk to your personal finances. Platforms should provide tools like deposit limits, self-exclusion options, and access to professional support to promote responsible play.
