Kappa: Stocks screener

Kappa is a factor-based stock screener inspired by 50+ years of historical stock market research. It helps long-term investors screen for undervalued, profitable, and financially strong stocks using a disciplined factor-investing approach.

Kappa focuses on factor investing: a systematic way to compare companies by measurable fundamentals such as valuation, profitability, and financial strength. Instead of trying to predict the next hot stock, Kappa helps you rank stocks, compare fundamentals, and review portfolios with a consistent research process.

Instead of buying the whole market blindly, Kappa helps you select stocks that meet specific fundamental criteria. In practice, this is similar to creating a custom index: a portfolio of companies selected by valuation, profitability, and financial strength rather than by market capitalization alone.

The S&P 500 is not magic. It is a strategy: buy large US companies and weight them by market capitalization. Kappa uses a different set of rules. Instead of selecting companies mainly because they are big, Kappa ranks stocks by valuation, profitability, and financial strength.

Historical factor research suggests that such rule-based strategies have outperformed S&P 500 in certain long-term periods. Kappa brings this approach into a simple screener: rank the market, choose a strategy, build a diversified portfolio, and review it periodically.

Kappa updates market data every 5 minutes and recalculates stock fundamentals as prices change. The app tracks more than 5,000 US-listed stocks across NYSE and NASDAQ. Kappa calculates 15 fundamentals and groups them into three main ranks:

– Valuation

– Profitability

– Financial strength

You can use these specific ranks separately or combine them with the Best Rating strategy. Each stock receives one of five Kappa model ratings:

– Strong buy

– Buy

– Consider

– Avoid

– Strong avoid

Kappa uses classic fundamentals such as P/E, P/S, P/B, P/FCF, EV/EBITDA, ROE, ROA, ROI, Net Margin, Quick Ratio, Current Ratio, and Debt-to-Equity. It also includes financial strength metrics such as Altman Z-Score and Piotroski F-Score to help evaluate financial health and bankruptcy risk.

Kappa’s methodology is inspired by historical factor research. Backtests cited in James O’Shaughnessy’s widely known book “What Works on Wall Street” reported annual returns in the 18–20% range for certain strategies in tested periods — roughly 6–8 percentage points above the broad market. Kappa turns this research into a practical stock screener.

Please note that past performance does not guarantee future results. Kappa is a research tool, not financial advice.

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