Stock picks of the week: 5 stocks with consistent score improvement and return potential of over 24% in 1 year

Why are we making bullish assumptions at a time of geopolitical uncertainty? For one, a number of mid-cap stocks are participating in the recovery, and that deserves some weightage. Another reason: the market's reaction to Q4 results has been relatively charitable—and also stock-specific. However, before making any significant capital commitments, it would be prudent to remain cautious and selective. Our stance stems from the fact that, even after the recent correction, valuations are still not in the “cheap” territory. So, essentially—be bullish, but selective. And last but not least, be prepared for volatility. Our selected stocks for today show a strong upward trajectory in their overall average score, which is based on five key pillars: earnings, fundamentals, relative valuation, risk, and price momentum. This suggests a significant improvement in their market outlook over the observed time frame.