Last night I ran my fundamental and technical check of Stryker Corporation (SYK) to see how it fits into my other requirements as a potential buy candidate. The previous day this stock showed up in my screener list as a strong candidate. Stryker as a medical equipment manufacturer expert in orthopedic products field showed great valuation at first. Its fair value at @70 a share indicates that this company is traded at a great discount with a buy price at 50.40 dollars and a target price at $100. The profit expectation could reach $50 a share and with buying 17 shares the profit expectation could reach 84% while risking only 6%. However my further screening criteria weren’t passed by this stock. Out of the total 14 points I assign to each screened fundamental ratio only 5 were passed.

That means that I am not rushing in buying this stock. I will keep it in my watch list instead and see what this stock will do and how it improves. I want to buy the best of the best of the best and because this stock didn’t pass my fundamental check I will stay on the conservative side of the trading or stock picking.

I then pre-checked another stock for further review. It is Ansys Inc. (ANSS). Ansys, based in Canonsburg, Pa., develops software solutions for design analysis and optimization. Using the company’s products, engineers can construct computer models of structures or processes to simulate performance conditions and physical responses to varying levels of stress, pressure, temperature, and velocity. Companies adopt Ansys software to accelerate a product’s time to market, reduce production costs, and optimize product safety.

This stock also popped up in my screen result list as a strong buy candidate. I checked its trending, one of my first pre-screen criteria if it makes any sense to continue in further screening at all.

So first I check 1-year chart to see what the stock is doing:

From this chart, the stock shows strong uptrend, however the volume is a bit weaker than at the beginning of the trend. Then I take a look at 3-year trend, to see how the stock was trending in longer time frame:

Even from this chart it is apparent that the stock is a great trend mover. I can ignore the recession period, since this was a global downturn and many even good stocks were driven down by the market. The most important factor here is that the stock was able to recover and resume the trend.

To make sure I am looking at this issue correctly I also want to check 5-year chart:

A brisk look at this chart confirms that the stock is trending with some volatility and there fore providing a great opportunity to grow aggressively and make some money here. I can consider this stock as aggressive growth stock (with higher risk of course, which fits my strategy of this trading account and it makes this stock a good candidate for me). The only check which this stock didn’t pass is my requirement of making new 52-W high price, but this stock seems to have the strength to move there and meet the criteria and I am not buying yet. Another issue is low volume and actually drying volume, which signals that no new money are flowing into this stock. If I decide to buy an initial position I may consider a tight stop loss in case the trend will end.

So the stock passed my first screening, in general it passed my technical pre-screening and now I want to review its fundamental data. My goal is to buy fundamentally strong stocks, which have momentum for aggressive growth.

For fundamental check I use a set of numbers and ratios I want to check and for each passed ratio I assign a point. The highest points the better. Most likely I review 14 key ratios and I want at least 10 points to consider the stock passed. If it does, I buy this stock. If it doesn’t I may keep it in my list for future review or drop it and move on.

Since the stock is now declining in price I am not in rush and I will review fundamentals tomorrow.