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AI Stock Picker Help Documentation

Welcome to AI Stock Picker

AI Stock Picker  is Kavout’s advanced AI-powered stock selection tool that helps investors cut through market noise and identify high-potential stocks daily. By combining proven investment strategies with cutting-edge AI technology, it simplifies stock selection and makes data-backed investing accessible for everyone.

Table of Contents

  1. Getting Started
  2. How AI Stock Picker Works
  3. AI Scoring Systems
  4. Available Strategies
  5. Performance Examples
  6. Tips & Best Practices
  7. Support & Additional Help

Getting Started

AI Stock Picker provides pre-built stock-picking strategies to help investors find high-potential stocks effortlessly. With AI-driven rankings and multiple proven strategies, this tool analyzes 9,000+ U.S. stocks daily to surface the best opportunities.

Learn more about what makes AI Stock Picker exceptional: AI Stock Picker Explained: What Makes Them the Best? 

Key Benefits

  • AI-Powered Analysis: Processes vast amounts of financial, technical, and alternative data
  • Multiple Strategies: Access 12+ AI-enhanced strategies based on proven investment methods
  • Daily Updates: Continuous ranking and analysis of 9,000+ stocks
  • Market Segmentation: Filter by Large-Cap, Mid-Cap, Small-Cap, Penny Stocks, S&P 500, and Russell 1000

How AI Stock Picker Works

Learn how AI Stock Picker transforms stock selection: Introducing Top AI Stock Picks: Smarter Stock Selection with AI 

The AI Stock Picker Process

  1. Data Collection and Processing

    • Gathers data from diverse sources including stock prices, earnings reports, news articles, and market sentiment
    • Analyzes alternative data such as institutional interest and social media trends

  2. Analysis and Pattern Recognition

    • Uses machine learning algorithms like deep learning and natural language processing (NLP)
    • Identifies patterns and trends that signal potential stock performance

  3. Scoring and Ranking

    • Evaluates stocks using proprietary scoring systems
    • Ranks stocks based on predefined criteria across multiple strategies

  4. Recommendations and Alerts

    • Delivers actionable insights and buy/sell recommendations
    • Provides alerts for stocks with strong upward momentum

  5. Continuous Learning

    • Evolves over time, learning from market outcomes
    • Improves accuracy and predictive power continuously

AI Scoring Systems

Kai Score (K Score) - AI Stock Ranking (1-9 Scale)

Kai Score is a proprietary AI-driven ranking system that predicts stocks with strong potential for future outperformance. The higher the score (9 being highest), the stronger the stock’s potential.

Learn how to create custom AI stock picks: Kai Score Is Here: Create AI Stock Picks Your Way 

What Kai Score Evaluates:

  • ✅ Fundamental data — Valuation, financial strength, and earnings trends
  • ✅ Technical indicators — Price action, momentum, and trend strength
  • ✅ Alternative data — Market sentiment, institutional interest, and more

Example Kai Score Queries:

  • “Large-cap stocks with P/E ratio < 20 and Kai Score > 7”
  • “Small-cap stocks with Kai Score > 8”
  • “Kai Score for Meta”
  • “Kai Score, Stock Rank for MSFT, AAPL, AMZN, META”

Stock Rank (0-100 Score)

A comprehensive factor-based ranking system that evaluates stocks on:

  • Value: Price relative to fundamentals
  • Quality: Financial strength and stability
  • Momentum: Recent price performance
  • Growth: Future earnings potential

Technical Ratings (0-100 Score)

AI-driven analysis of bullish or bearish strength using technical indicators, categorized as:

  • Strong Buy
  • Buy
  • Neutral
  • Sell
  • Strong Sell

Intraday Kai Score

Available in Market Movers and Watchlist Trading Signals:

  • Real-time rankings updated every 30 minutes
  • 30-minute and 1-hour timeframe analysis
  • Smart Signals including RSI Divergence, OBV Divergence, CCI, and Stoch RSI

Available Strategies

1. Peter Lynch Growth Strategy

Based on the legendary fund manager’s “invest in what you know” philosophy, this strategy identifies potential “tenbaggers” — stocks that can increase tenfold.

Learn more: Peter Lynch’s Timeless Growth Strategy: How to Find 10-Baggers in Today’s Market 

Key Principles:

  • Focus on companies you understand
  • Look for consistent earnings growth
  • Identify stocks with PEG ratios below 1
  • Enhanced with AI-powered momentum signals

Access: Kavout’s AI Stock Picker Lynch Growth Strategy 

2. Magic Formula Strategy

Joel Greenblatt’s value investing approach that identifies good companies at bargain prices using straightforward metrics.

Comprehensive guide: Unlocking Joel Greenblatt’s “Magic Formula”: A Simple Guide to Smarter Investing 

Two Key Metrics:

  • Earnings Yield: How much a company earns relative to its price (EBIT/Enterprise Value)
  • Return on Capital (ROC): How efficiently a company uses capital to generate profits

Enhanced Versions:

  • Momentum Magic Formula : Combines value fundamentals with momentum signals
  • Targets undervalued companies showing upward price trends

Access: Magic Formula stock selection 

3. Piotroski F-Score Strategy

A nine-point scoring system that assesses financial strength by examining profitability, leverage, liquidity, and operating efficiency.

Detailed explanation: Unlocking Stock Market Winners: A Guide to the Piotroski F-Score 

F-Score Categories:

  • Profitability (up to 4 points): ROA, Operating Cash Flow, ROA improvement, Quality of Earnings
  • Financial Strength (up to 3 points): Leverage, Liquidity, Share issuance
  • Operating Efficiency (up to 2 points): Gross Margin, Asset Turnover

Score Interpretation:

  • Strong (8-9 points): Financially robust companies
  • Good (7 points): Strong companies worth considering
  • Weak (0-2 points): Companies with deteriorating fundamentals

Enhanced Version:

4. Quality Shareholder Yield Strategy

Goes beyond dividends to measure total cash returned to shareholders through dividends, buybacks, and debt reduction.

Learn the strategy: Beyond Dividends: A Smarter Way to Pick Stocks with Shareholder Yield 

Three Components:

  • Dividend Yield: Direct cash payments to shareholders
  • Net Share Buybacks: Share repurchases minus new shares issued
  • Debt Reduction: Strengthening the balance sheet

Access: Quality Shareholder Yield Strategy 

5. Quality Value Momentum Fusion Strategy

Combines three critical factors — quality, value, and momentum — for a balanced approach to stock selection.

Performance analysis: Quality Value Momentum Fusion Strategy: Outperforming the S&P 500 by 90% in Penny Stocks 

Three Pillars:

  • Quality: Financial strength and stability
  • Value: Attractive valuations relative to fundamentals
  • Momentum: Upward price trends

Access: Quality Value Momentum Fusion 

6. Dual Analysis Strategy

Integrates fundamental and technical analysis for comprehensive stock evaluation.

Learn more: Dual Analysis Strategy: Achieve 34% Higher Returns by Leveraging Both Fundamental and Technical Insights 

Combines:

  • Stock Rank: Fundamental analysis across Quality, Value, and Momentum
  • Technical Ratings: Technical indicators like moving averages, RSI, and Bollinger Bands

Access: Dual Analysis Strategy 

Performance Examples

Recent Strategy Performance Highlights

Quality Value Momentum Fusion (September)

  • Average return: 7.38%
  • S&P 500 return: 3.83%
  • Outperformance: 90%
  • Top performer: LX with 42.53% return

Momentum Magic Formula (September to Early October)

  • Average return: 5.32%
  • S&P 500 return: 3.16%
  • Outperformance: 68%
  • Top performer: NTES with 28.34% return

Learn more: Momentum Magic Formula Strategy: Outperforming SPY with a 68% Higher Return 

Dual Analysis Strategy (September)

  • Outperformance: 34% vs S&P 500
  • Top performer: BLDR with 17.25% return

Key Success Factors

  • Combining multiple analysis approaches
  • Leveraging AI for pattern recognition
  • Continuous adaptation to market conditions
  • Disciplined strategy execution

Tips & Best Practices

1. Strategy Selection

  • Choose strategies that align with your investment goals
  • Consider your risk tolerance and time horizon
  • Diversify across multiple strategies for balanced exposure

2. Using AI Stock Picks

  • Start with Stock Ideas: Use AI picks as a starting point for research
  • Conduct Due Diligence: Review earnings reports, management quality, and industry trends
  • Leverage Multiple Tools: Combine with InvestGPT for deeper analysis

3. Timing Your Trades

  • Use momentum indicators for entry and exit timing
  • Consider technical ratings alongside fundamental scores
  • Monitor Intraday Kai Score for short-term opportunities

4. Portfolio Management

  • Diversify across sectors and market caps
  • Regular rebalancing based on strategy updates
  • Set stop-loss orders to manage downside risk

5. Common Use Cases

For Value Investors:

  • Focus on Magic Formula and Shareholder Yield strategies
  • Look for high Earnings Yield with strong ROC
  • Screen for stocks with attractive valuations and quality metrics

For Growth Investors:

  • Utilize Peter Lynch Growth Strategy
  • Target stocks with high growth potential and reasonable valuations
  • Combine with momentum indicators for timing

For Balanced Approaches:

  • Use Quality Value Momentum Fusion or Dual Analysis Strategy
  • Balance fundamental strength with technical signals
  • Achieve exposure to both value and growth opportunities

6. Remember the Fundamentals

As noted in our documentation: “AI is a great assistant but not a replacement for hard work and thorough research. While it provides valuable insights, there are limits to what it can answer. Use it as a tool to enhance your decision-making—success ultimately depends on your strategy and efforts.”

Support & Additional Help

Access AI Stock Picker

  • Main Platform: AI Stock Picker 
  • Top AI Stock Picks: View daily rankings across all market segments
  • Strategy-Specific Pages: Access individual strategy selections

Additional Resources

Subscription Information

Sign up for Kavout Pro  to unlock:

  • ✅ Access to all 12+ AI Stock Picker strategies
  • ✅ Real-time market insights
  • ✅ AI-driven stock signals
  • ✅ Advanced stock-picking tools tailored to your portfolio

Conclusion

AI Stock Picker represents the convergence of time-tested investment strategies and cutting-edge AI technology. By providing access to multiple proven strategies enhanced with AI analysis, it empowers investors to make smarter, data-driven decisions across all market conditions.

Whether you’re seeking value opportunities, growth stocks, or balanced portfolios, AI Stock Picker provides the tools and insights needed to navigate today’s complex markets with confidence.

Ready to transform your investing? Subscribe to Pro  and start leveraging AI-powered stock selection today!

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