LightGBM Machine Learning

AI Stock Picker3,000+ Stocks Scored Daily

Our AI analyzes 51 features across 3,000+ stocks every trading day. Machine learning models trained on 10+ years of market data identify the best opportunities across 8 distinct investment strategies.

3,000+
Stocks Analyzed
51
ML Features
10+
Years Training Data
8
Strategies

How Our AI Picks Stocks

From raw data to actionable stock picks in 5 automated steps, running every trading day.

STEP 01

Data Collection

Every trading day, we pull fresh financial data, prices, and fundamentals for 3,000+ US stocks.

STEP 02

Feature Engineering

Raw data is transformed into 51 predictive features per stock - ratios, growth rates, momentum signals.

STEP 03

ML Scoring

LightGBM models trained on 10+ years of data score each stock's expected forward return.

STEP 04

Portfolio Optimization

Top-ranked stocks are selected for each strategy with position sizing and risk constraints.

STEP 05

Signal Generation

Surgical changes (adds/removes) are identified and email alerts sent to subscribers.

51 Features Per Stock

Our ML models analyze a comprehensive set of fundamental and technical indicators.

Valuation

  • P/E Ratio
  • P/B Ratio
  • EV/EBITDA
  • Price/Sales
  • PEG Ratio

Profitability

  • ROE
  • ROA
  • ROIC
  • Gross Margin
  • Net Margin

Growth

  • Revenue Growth
  • EPS Growth
  • Book Value Growth
  • Earnings Surprise

Momentum

  • 1M Return
  • 3M Return
  • 6M Return
  • 12M Return
  • RSI

Risk

  • Beta
  • Volatility
  • Max Drawdown
  • Sharpe Ratio

Quality

  • Debt/Equity
  • Current Ratio
  • Interest Coverage
  • Altman Z-Score

Plus sector indicators, market cap categories, trading volume metrics, and more.

AI Stock Picking Across 8 Strategies

Each strategy has its own ML model optimized for different investment objectives.

Value Strategy

Finds undervalued stocks with low P/E, strong cash flow

  • P/E < market median
  • Positive free cash flow
  • Low debt/equity

Growth Strategy

High-growth companies with strong momentum

  • Revenue growth > 15%
  • Positive earnings trend
  • High ROE

Dividend Strategy

Income-focused with stable, high-yield stocks

  • Dividend yield > 2%
  • Payout ratio < 80%
  • 10+ year dividend history

Adaptive Strategy

AI detects market regime and adjusts automatically

  • Bull/bear detection
  • Dynamic allocation
  • Risk-adjusted positioning

Validated, Not Just Backtested

Our models are continuously validated against real forward returns. Every prediction is tracked and measured.

> 0.03

Spearman IC

Rank correlation between predictions and actual returns

> 52%

Hit Rate

Percentage of correct directional predictions

> 2%

Long-Short Spread

Return difference between top and bottom quintiles

> 0.5

Information Ratio

Risk-adjusted excess returns vs benchmark

Walk-Forward Validation

Models are trained on rolling 3-year windows and tested on out-of-sample 6-month periods. This prevents overfitting and ensures predictions generalize to new market conditions.

AI Stock Picking FAQ

How does AI pick stocks?

AI stock pickers use machine learning algorithms to analyze vast amounts of data - financial statements, price patterns, market sentiment, and more. The AI identifies patterns that predict future performance and ranks stocks accordingly. ACIS uses LightGBM gradient boosting with 51 features per stock.

Is AI stock picking better than human stock picking?

AI has several advantages: it processes more data faster, makes emotion-free decisions, and can identify subtle patterns humans miss. However, AI works best when combined with solid investment fundamentals. ACIS uses ML to enhance proven strategies like value and momentum investing.

What data does ACIS use to pick stocks?

ACIS analyzes 51 features per stock including: P/E ratio, P/B ratio, ROE, debt ratios, revenue growth, earnings momentum, price momentum, volatility, sector trends, and market cap. Models are trained on 10+ years of historical data.

How accurate is AI stock picking?

No AI can predict markets perfectly. ACIS models target a hit rate above 52% (better than random) with positive Spearman IC correlation between predictions and returns. Our models are validated daily against actual 20-day forward returns.

How often does the AI update stock picks?

ACIS scores all 3,000+ stocks daily and updates portfolio recommendations. Changes are surgical - typically 1-3 position changes per strategy per day rather than wholesale portfolio rebuilds. This minimizes turnover and tax impact.

See AI Stock Picks in Action

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