Van Elle Holdings passes this 3-point stock market strategy

Van Elle Holdings passes this 3-point stock market strategy

Article image

Covid-19 has been a stark reminder of how unpredictable events can leave stock market investors feeling sucker-punched. Over time, researchers have strived to strike out these risks by pinpointing the drivers that can insulate investors from the very worst drawdowns... 

Their answer is what we call 'factor investing' - and it's something that investors with an interest in Van Elle Holdings LON:VANL might be interested in.

In recent decades, finance academics and market professionals have broadly agreed that stock market outperformance is influenced by a handful of important 'factors'. Using these ideas could put you on the right path to finding shares with the above-average chances of beating the market...

Choose high quality over junk

Some of the most influential stock market studies have found that Quality is an important factor that tends to show up time and time again...

Companies with a track record of profitable growth, high efficiency and solid finances, have been shown to be better bets on average than low quality, loss-making firms.

  • By our calculations (which use a range of financial quality metrics) Van Elle Holdings has a Quality Rank of 89 (where zero is poor and 100 is excellent).

Opt for cheap over expensive

Another well-research observation is that attractively valued shares tend to outperform expensive shares on average over time. So it's important to look at Value and whether a company is being fairly priced relative to what it earns, owns and what it pays out.

  • By our calculations (which look at several valuation metrics) Van Elle Holdings has a Value Rank of 75.

Look for a positive trend

It's easy to think that Momentum is only a measure for technical traders, but research once again shows that recent trends in both price and fundamentals can be a strong hint about the future. In the market, trends tend to persist, so it makes sense to look for stocks that are on an upward trajectory.

  • By our calculations (which look at both price and earnings momentum) Van Elle Holdings has a Momentum Rank of 73.

Overall, there are signs here that Van Elle Holdings has above-average exposure to three very important drivers of stock market profits...


What does this mean for potential investors?

Good quality shares that are well priced and rising in the market have very broad appeal. But there are no guarantees. Finding bullet-proof shares is difficult - and we've identified some areas of concern with Van Elle Holdings, which you can find here. Knowing the warning signs and being aware of weakness is essential if you're going to preserve your wealth.


About us

Stockopedia helps individual investors make confident, profitable choices in the stock market. Our StockRank and factor investing toolbox unlocks institutional-quality insights into thousands of global stocks. Voted “Best Investment Research Tools” and “Best Research Service” at the 2021 UK Investor Magazine awards.

Van Elle Holdings's StockRank™

Super StockAdventurous

Van Elle Holdings's StockRank™

With a StockRank of 98, Van Elle Holdings is more attractive than 98% of the 7,586 stocks we cover in Europe, according to our proprietary ranking system.

See the full StockReport

Absolutely Perfect

"Trialed multiple other platforms - this is by far my favourite. Other platforms do not even have half the stuff that you can find on Stockopedia. Love it!"

As per our Terms of Use, Stockopedia is a financial news & data site, discussion forum and content aggregator. Our site should be used for educational & informational purposes only. We do not provide investment advice, recommendations or views as to whether an investment or strategy is suited to the investment needs of a specific individual. You should make your own decisions and seek independent professional advice before doing so. Remember: Shares can go down as well as up. Past performance is not a guide to future performance & investors may not get back the amount invested.