 "Motilal Oswal top 5 quant strategy stocks for July 2025: Full list here")
Quant Multi-Factor Watchlist - July 2025
Navigating the dynamic stock market demands a robust strategy. Multi-factor investing combines multiple proven metrics to identify stocks with strong potential, filtering out short-term volatility and focusing on consistent return drivers for the long term. This multi-factor ranking approach helps us shortlist the best tactical bets within the MOFSL universe with a 'Buy' rating. CATCH STOCK MARKET UPDATES TODAY LIVE
What is Multi-Factor Investing?
Multi-factor investing integrates several investment styles into a single strategy, selecting stocks that excel in:
- Value: Stocks trading below their intrinsic worth.
- Quality: Companies with strong financial fundamentals.
- Momentum: Stocks with positive price trends.
- Earnings Surprise: Stocks with recent upward revisions in earnings estimates.
This approach enhances consistency and reduces the risk of chasing fleeting trends. Motilal Oswal Financial Services Ltd. (MOFSL) employs an in-house Quant model to rank stocks within its research universe, selecting only those with a Buy rating.
Top 5 stocks in Quant Watchlist - July 2025:
The following stocks, all carrying a Buy rating from MOFSL analysts, rank highest in our Quant model, balancing value, quality, momentum, and earnings surprise:
CEAT Ltd (CEATLTD):
Excels in quality with recent earnings upgrades, signalling strong analyst confidence in future profitability. Moderate momentum and value scores suggest steady growth potential.
Hindustan Petroleum Corp (HINDPETRO):
A standout for its attractive valuation and strong earnings surprise, with recent upward revisions in earnings estimates. Emerging momentum indicates growing market traction.
NMDC Ltd (NMDC):
A well-rounded pick with high scores in quality, value, and earnings surprise. Despite lower momentum, its robust fundamentals and analyst optimism make it a strong contender.
PNB Housing Finance (PNBHOUSING):
A high-momentum stock with a significant earnings surprise, reflecting analyst expectations of improved financials. Though quality scores are lower, rising investor sentiment fuels interest.
Union Bank of India (UNIONBANK):
A balanced choice with solid value, rising momentum, and positive earnings surprise. Improving financial estimates position this PSU bank as a compelling pick.
These stocks represent the top-ranked opportunities within the MOFSL universe, leveraging our multi-factor approach to deliver consistent, high-potential investment ideas for July 2025. (Disclaimer: This article is by Neil Jha, head of quant products, wealth management, Motilal Oswal Financial Services. Views expressed are his own.)