I’m a huge fan of companies with solid fundamentals that are buying back stock and also seeing insider cluster buying.
I set up portfolios of companies with high scores on the Piotroski F Score fundamentals checklist, reduced their share count over the past year, and saw at least three insiders buy shares in the open market over the last several months.
This combination – stock buybacks, insider buying, and strong “Econ 101” balance sheets – is a market beater. It crushed the S&P 500 in 86% of the periods I tested.
In the current environment, where many of these stocks are trading at a huge discount, that means there’s an opportunity for investors to set themselves up for incredible gains when the market rebounds.
I’ve got three picks for you here that made my list…
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