Fair Value · Triple Filter

The Strike Zone — Best Value Stocks to Buy (Triple-Qualified)

The most selective stock list on FairValueLabs. A stock enters the Strike Zone only when it's simultaneously undervalued, financially safe, and protected by a competitive moat.

What Makes the Strike Zone Different

Most stock screeners use a single dimension — lowest P/E, highest yield, or best momentum. The Strike Zone is a three-dimensional filter that requires a stock to pass all three of our core analysis engines simultaneously:

Undervalued

Positive margin of safety from our DCF model — the stock trades below our intrinsic value estimate.

Safe

Altman Z-Score above 1.8 — out of the bankruptcy distress zone. The company can survive a recession.

Moated

Moat rating of 3+ stars — the company has a competitive advantage protecting its profits.

When all three conditions are met, you've found what value investors call a "wonderful company at a fair price." These opportunities are rare — typically only 3-8 stocks qualify at any given time out of our coverage universe.

Currently qualified

Stocks in the Strike Zone

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ACN $195.06

Accenture plc

Z-Score 3.57

Fair Value $294.48

Moat ★★★½☆

Div Safety A

Safe Zone MoS: 33.8%

MO $64.61

Altria Group, Inc.

Z-Score 4.78

Fair Value $90.11

Moat ★★★★☆

Div Safety C

Safe Zone MoS: 28.3%

FAQ

Common questions about the Strike Zone

What qualifies a stock for the Strike Zone?

A stock must pass all three filters simultaneously: (1) Positive margin of safety — our DCF model says the stock trades below intrinsic value, (2) Altman Z-Score above 1.8 — not in the bankruptcy distress zone, (3) Moat rating of 3+ stars — the company has a measurable competitive advantage. When all three green lights are on, the stock enters the Strike Zone.

How often does the Strike Zone list change?

The list updates whenever new SEC filings are processed or stock prices change significantly. A stock can enter or exit the Strike Zone as prices move (changing the margin of safety) or as new financial data alters the Z-Score or moat rating. Typically 3-8 stocks qualify at any given time.

Is the Strike Zone a buy recommendation?

No. The Strike Zone identifies stocks that pass our three quantitative filters. It's a starting point for research, not a substitute for your own due diligence. Position sizing, portfolio diversification, sector exposure, and your personal risk tolerance all matter. Always read the individual ticker analysis page before making any investment decision.

What is the success rate of Strike Zone stocks?

We don't claim a specific success rate because past performance doesn't guarantee future results. The logic is simple: buying undervalued stocks with safe balance sheets and strong competitive advantages has historically outperformed over long periods. This is the core of value investing as practiced by Buffett, Munger, and Graham.

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