North American-listed energy companies with positive valuation metrics and upside price momentum amid the current market downturn.
Our research team at Trading Central follows a strict top-down approach to stock picking. We are only interested in stocks that are outperforming relative to our benchmark, the S&P 500, and are in sectors that are trending higher. We are not interested in catching falling knives. We begin by setting a minimum market capitalization threshold of US$2-billion to screen out the smaller companies in the sector that tends to have above-average volatility.
In order to avoid companies that are highly leveraged, we focused on companies in the energy sector that are indicating a debt-to-equity ratio of less than 0.75. The higher the ratio, the more leveraged the company is.