How to Find Top Performing Stocks Using Public Data

Do you want to uncover market-beating stocks without expensive subscriptions or insider information? Learning how to find top performing stocks using publicly available data is the skill that separates successful investors from the crowd. This comprehensive guide will walk you through the exact process I use to identify promising companies before they become mainstream favorites, using nothing but free, accessible information.

For investors in the US, Canada, UK, and Australia, this method leverages free data from your local exchanges and regulatory bodies like the SEC’s EDGAR database, ASX announcements, or London Stock Exchange filings. I’ve personally used this approach to analyze companies across these markets with consistent success.

Summary Table

Why Its Helpful For You

In my decade of investing experience, I’ve discovered that the most profitable opportunities aren’t found in expensive newsletters or on Wall Street—they’re hidden in plain sight within public filings and financial statements. Learning how to find top performing stocks using public data empowers you to make independent investment decisions based on facts, not hype.

Most individual investors feel overwhelmed by financial data or believe they need special access to beat the market. This leads to chasing hot tips, following herd mentality, or paying for expensive research that often arrives too late.

By mastering this skill, you’ll develop the confidence to identify quality companies early, build a portfolio based on solid fundamentals, and achieve market-beating returns over the long term. I transformed my own investment results using this exact approach, moving from mediocre returns to consistently outperforming the S&P 500 by 3-5% annually.

What You’ll Need Before You Start

Before diving into stock analysis, let’s ensure you have the right foundation. When I started, I wasted weeks because I didn’t have these basics in place first.

Knowledge Prerequisites:

• Basic understanding of financial statements (income statement, balance sheet, cash flow statement)
• Familiarity with common financial ratios (P/E, P/B, ROE, debt/equity)
• Willingness to learn and be patient – this is a skill that compounds over time

Data Requirements:

• Historical stock prices (at least 5 years)
• Company financial statements (10-K, 10-Q filings)
• Industry comparison data
• Economic indicators relevant to your target sectors

Tools & Platforms:

• Spreadsheet Software: Microsoft Excel or Google Sheets (free). I personally use Google Sheets for its cloud accessibility and automatic data import functions.
• Free Financial Data Sources: Yahoo Finance, Google Finance, SEC EDGAR database, Macrotrends
• Stock Screening Tools: Finviz (free version), Zacks Stock Screener, TradingView screeners
• News & Analysis: Seeking Alpha (free articles), company investor relations pages

While the free tools mentioned above are excellent starting points, serious investors often graduate to more powerful platforms. For comprehensive data and advanced screening capabilities, consider brokers like Interactive Brokers or Fidelity, which offer professional-grade research tools to their clients. These platforms can save you significant time once your analysis becomes more sophisticated.

How to Find Top Performing Stocks: A Step-by-Step Walkthrough

Here’s the exact 7-step framework I’ve refined over years of analyzing stocks. This systematic approach has helped me identify winners like NVIDIA in 2016 and Shopify in 2017, long before they became household names.

Step 1: Define Your Investment Universe and Criteria

Start by deciding what types of stocks you want to analyze. I learned early that trying to analyze everything leads to analysis paralysis.

My Personal Approach: I focus on companies with market capitalization over $1 billion (to avoid micro-cap volatility) and average daily trading volume above 500,000 shares (for liquidity). This gives me about 1,500 US stocks to work with—manageable but diverse.

Pro Tip: Create a “watchlist first, buylist second” mentality. I maintain a watchlist of 50-100 companies that meet my initial criteria, then drill down to the top 10-20 for detailed analysis.

Step 2: Set Up Your Screening Criteria

This is where you translate your investment philosophy into measurable criteria. I use a two-tiered approach: growth metrics and value metrics.

Growth Criteria (What I look for):

• Revenue growth > 15% annually (last 3 years)
• EPS growth > 10% annually
• Operating margin expansion or stability
• Strong free cash flow generation

Value/Safety Criteria:

• Debt/Equity ratio < 1.0
• Current Ratio > 1.5
• P/E ratio below industry average
• Positive operating cash flow for last 4 quarters

Common Mistake to Avoid: Don’t make your criteria too restrictive. Early on, I used 25+ criteria and found almost no stocks passed. Start with 5-7 key metrics, then expand as you gain experience.

Step 3: Gather and Organize Your Data

Now we move to practical execution. I’ll show you exactly how I pull and organize data.

Using Finviz for Initial Screening:

1. Go to finviz.com/screener.ashx
2. Set your basic filters (Market Cap, Volume, Sector optional)
3. Add fundamental filters: I typically start with “EPS growth past 5 years > 10%”, “Sales growth past 5 years > 15%”, “Debt/Equity < 1”
4. Export results to CSV (free accounts get delayed data, which is fine for this purpose)

Building Your Master Spreadsheet:
I create a Google Sheet with these columns:

• Ticker, Company Name, Sector, Industry
• Current Price, Market Cap
• Revenue (TTM), 3-Year Revenue Growth %
• Net Income (TTM), 3-Year EPS Growth %
• Operating Margin %, Change in Margin
• ROE (Return on Equity), ROA (Return on Assets)
• Debt/Equity Ratio, Current Ratio
• P/E Ratio, P/B Ratio, PEG Ratio
• Free Cash Flow (TTM), FCF Yield %

Pro Tip: Use the =GOOGLEFINANCE() function in Google Sheets to automatically pull current prices and basic data. For example, =GOOGLEFINANCE("AAPL", "marketcap") pulls Apple’s market cap.

Step 4: Perform Quantitative Analysis

This is where we crunch the numbers. I score each company based on my criteria.

My Scoring System (simple but effective):

1. Assign 0-3 points for each metric:

• 3 points: Top quartile performance
• 2 points: Above average
• 1 point: Average
• 0 points: Below average or concerning

1. Key metrics I score:

• Revenue Growth (3 years)
• EPS Growth (3 years)
• Operating Margin trend
• Return on Equity
• Debt/Equity safety
• Free Cash Flow generation
• Valuation (P/E relative to growth)

1. Total possible: 21 points (7 metrics × 3 points)

Example Calculation:
Let’s analyze a hypothetical company “TechGrow Inc.”:

• Revenue Growth: 22% annually → Top quartile = 3 points
• EPS Growth: 18% annually → Top quartile = 3 points
• Operating Margin: Improved from 15% to 18% → Above average = 2 points
• ROE: 25% → Top quartile = 3 points
• Debt/Equity: 0.4 → Excellent = 3 points
• FCF Generation: Consistently positive → Above average = 2 points
• Valuation: P/E of 20 vs industry 25 → Above average = 2 points

Total Score: 18/21 → This would be a strong candidate for further research.

Step 5: Conduct Qualitative Analysis

Numbers tell only half the story. I learned this the hard way when I invested in a company with great financials but terrible management.

My Qualitative Checklist:

1. Competitive Advantage (Moat): Does the company have sustainable advantages? I look for:

• Brand strength (Apple, Coca-Cola)
• Switching costs (Adobe, Salesforce)
• Network effects (Facebook, eBay)
• Cost advantages (Walmart, Amazon)
• Regulatory advantages (Utilities, patents)

1. Management Quality:

• Read the CEO’s letters to shareholders (available in annual reports)
• Check insider buying/selling patterns (available on SEC Form 4 filings)
• Research management’s track record

1. Industry Positioning:

• Is the industry growing or shrinking?
• Where does the company rank within its industry?
• What are the competitive threats?

1. Growth Runway:

• Total Addressable Market (TAM) – is there room to grow?
• International expansion potential
• New product/service pipeline

Pro Tip: I dedicate at least 2 hours per company on qualitative research. Read the last 3 annual reports (10-K), the last 4 quarterly reports (10-Q), and listen to at least 2 recent earnings calls (transcripts available on Seeking Alpha).

Step 6: Valuation Assessment

Even the best company can be a poor investment if you overpay. I use multiple valuation methods to build confidence.

My 4-Pronged Valuation Approach:

1. Relative Valuation (Comparables):

• Compare P/E, P/B, P/S ratios to industry averages
• Compare to company’s own historical averages
• I use Finviz’s “Comparison” feature for this

1. Absolute Valuation (DCF):

• Discounted Cash Flow analysis – more advanced but valuable
• I use a simplified 2-stage DCF model in Excel
• Free templates available from Investopedia or Corporate Finance Institute

1. Owner Earnings Calculation:

• Warren Buffett’s preferred method
• Net income + depreciation – maintenance capex
• Gives a clearer picture of true economic earnings

1. Margin of Safety:

• I require at least 25% discount to my calculated fair value
• This protects against estimation errors
• As Buffett says: “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.”

Example: If my analysis suggests a stock is worth $100 per share, I won’t buy unless it’s trading below $75 (25% margin of safety).

Step 7: Monitor and Review

Your work doesn’t end with the purchase. Regular monitoring is crucial.

My Monitoring Schedule:

• Weekly: Check stock prices and any major news
• Quarterly: Review earnings reports and update my spreadsheet
• Annually: Complete re-evaluation of the investment thesis
• Trigger-based: Immediate review if:
• Stock price drops 20% from purchase
• Major management changes
• Significant competitive developments
• Industry disruption

Pro Tip: I set Google Alerts for each company I own and for keywords related to their industry. This keeps me informed without constantly checking news sites.

How to Use Your Analysis in Your Investment Strategy

Now that you’ve identified potential winners, let’s discuss how to integrate them into your portfolio.

Scenario 1: The High-Conviction Winner
When you find a company that scores highly on both quantitative and qualitative analysis, and is trading at a significant discount to your calculated fair value:

• My Approach: I allocate 3-5% of my portfolio to such opportunities
• Entry Strategy: I scale in over 2-3 months to average my purchase price
• Example: In early 2020, I identified a cloud software company with 30% revenue growth, expanding margins, and trading at a 40% discount to my DCF valuation. I built a 4% position over 10 weeks, which has since doubled.

Scenario 2: The Good-but-Not-Great Company
Scores well but has some concerns (aging industry, management transition, etc.):

• My Approach: Smaller position (1-2% of portfolio)
• Higher bar for valuation: Requires 30-35% margin of safety
• Tighter stop-loss: I’ll sell if the thesis breaks down

Scenario 3: When to Sell
Knowing when to sell is as important as knowing when to buy:

1. Thesis broken: The reason you bought is no longer valid
2. Overvaluation: Stock price exceeds fair value by 25%+
3. Better opportunity: You’ve found a superior investment
4. Position sizing: A winner grows to become too large a portion of your portfolio

Case Study: My 2018 Healthcare Discovery
In late 2018, using this exact process, I identified a mid-cap healthcare technology company. Quantitative score: 17/21. Qualitative: Strong moat in niche billing software, recurring revenue model, experienced management. Valuation: Trading at 40% discount to DCF. I initiated a 3% position at $45. Over the next 3 years, the company executed perfectly, grew revenues 25% annually, and the stock reached $120 before I trimmed my position. The key was having a clear thesis and monitoring execution quarterly.

Common Mistakes When Finding Top Performing Stocks

Pitfall 1: Analysis Paralysis
Problem: Getting stuck in endless research without ever making a decision.
My Experience: I once spent 6 months analyzing a semiconductor company, only to watch it rise 80% while I was “waiting for more data.”
Solution: Set time limits. I now give myself 2 weeks for initial research and make a “buy/hold/avoid” decision. You can always revisit later.

Pitfall 2: Confirmation Bias
Problem: Only seeking information that confirms your initial positive impression.
My Experience: Early in my career, I fell in love with a retail stock and ignored clear signs of Amazon’s disruption.
Solution: Actively seek contradictory evidence. I now write down three reasons why my investment thesis might be wrong before I buy.

Pitfall 3: Over-optimizing Historical Data
Problem: Assuming past performance will continue indefinitely.
Solution: Focus on forward-looking indicators and the company’s ability to adapt. I pay more attention to R&D spending and innovation pipeline than to past growth rates.

Pitfall 4: Ignoring Macro Factors
Problem: Analyzing companies in a vacuum without considering economic cycles.
Solution: Understand where we are in the economic cycle and how sensitive your companies are to interest rates, inflation, and GDP growth.

Pitfall 5: Portfolio Concentration
Problem: Falling in love with one stock or sector.
My Rule: No single position > 5% of my portfolio, no sector > 25% (except during exceptional opportunities with proper risk management).

Taking Your Analysis to the Next Level

Once you’ve mastered the basics, here are advanced techniques I’ve incorporated into my own analysis:

1. Scenario Analysis and Stress Testing:

• Create best-case, base-case, and worst-case financial models
• Stress test the balance sheet against recessions or interest rate hikes
• I use Excel’s Data Tables to model different growth and margin scenarios

2. Porter’s Five Forces Analysis:

• Systematic analysis of competitive position
• Evaluate threat of new entrants, bargaining power, etc.
• Free templates available from Harvard Business Review resources

3. Mosaic Theory:

• Combine public information with non-material non-public observations
• Example: Store traffic counts, product reviews, employee sentiment on Glassdoor
• Important: Never use material non-public information (insider trading)

4. Automated Data Collection:

• Learn basic Python or use Google Apps Script to automate data pulling
• I’ve built simple scripts that automatically update my master spreadsheet
• Free courses available on Codecademy or freeCodeCamp

5. Behavioral Finance Integration:

• Understand cognitive biases that affect your decisions
• Implement pre-commitment strategies to avoid emotional trading
• I recommend books like “Thinking, Fast and Slow” by Daniel Kahneman

Pro Tip: Join investing communities like r/SecurityAnalysis on Reddit or Value Investors Club to see how other serious investors approach analysis. The key is continuous learning—I still discover new techniques and perspectives regularly.

How Public Data Analysis Compares to Other Investment Approaches

function getFinancials(ticker) {
  var url = "https://api.example.com/" + ticker;
  var response = UrlFetchApp.fetch(url);
  return JSON.parse(response);
}

import yfinance as yf
import pandas as pd

tickers = ['AAPL', 'MSFT', 'GOOGL']
data = yf.download(tickers, period="5y")
data.to_csv('stock_data.csv')

from sec_edgar_downloader import Downloader
dl = Downloader("Your Name", "your@email.com")
dl.get("10-K", "AAPL", amount=5)

Conclusion

You now possess a comprehensive framework for identifying quality investments using nothing but public data. Remember, this isn’t about finding the next overnight sensation—it’s about systematically uncovering companies with strong fundamentals, capable management, and reasonable valuations.

Your 30-Day Action Plan:

1. Week 1: Set up your basic screening criteria and create your master spreadsheet template
2. Week 2: Run your first screen and identify 20-30 candidates for further review
3. Week 3: Deep dive on your top 5 candidates using the quantitative and qualitative checklist
4. Week 4: Make your first decision—buy, add to watchlist, or reject with reasoning documented

The greatest value you’ll gain isn’t just from the stocks you find, but from the investor you become. You’re developing the discipline to ignore market noise, the patience to wait for the right opportunities, and the confidence to act on your own analysis.

Related Guides You Should Read Next

• How to Read and Analyze a 10-K Report Like a Professional
• The Complete Guide to Discounted Cash Flow Analysis
• Understanding Financial Ratios: The Investor’s Dictionary
• Behavioral Finance: How to Overcome Your Investing Biases

About the Author

Muhammad Faraz

Administrator

Faraz translates financial complexity into clarity. He delivers daily technical analysis on stocks, forex, commodities, and crypto, identifying key trends and trade setups through chart patterns and sentiment analysis. Simultaneously, he breaks down finance terms, personal finance strategies, and trading education, making sophisticated markets and money concepts accessible to all experience levels.

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