Investing wisely requires a discerning eye for not just promising opportunities but also potential investment pitfalls. This delicate balance can be achieved through a quantamental approach, a method that synergizes quantitative analysis with in-depth financial scrutiny.
By applying this strategy to the S&P 500, I aim to uncover stocks that represent a higher risk, thus guiding investors away from potential losses. This comprehensive process is broken down into four methodical steps, designed to identify and evaluate companies from underperforming industries or those exhibiting signs of financial distress.
- Industry Performance Review
1.1 Fetching S&P 500 Companies and Industries
The process begins by extracting a list of S&P 500 companies and their respective industries from Wikipedia. This step is crucial for understanding the broader market landscape and setting the stage for a more granular analysis.
# Fetch the Wikipedia page and extract S&P 500 companies and their industries
url = "https://en.wikipedia.org/wiki/List_of_S%26P_500_companies"
page = requests.get(url)
soup = BeautifulSoup(page.content, "html.parser")
# Extract tickers and industries
table = soup.find('table', {'class': 'wikitable sortable'})
tickers = []
industries = []
company_names = []
for row in table.findAll('tr')[1:]:
company_name = row.find_all('td')[1].text.strip()
ticker = row.find_all('td')[0].text.strip()
industry =…