This week’s “Stock Picks of the Week” by The Economic Times focuses on five companies that stand out not just because of recent price momentum, but primarily because their underlying business and financial scores are improving significantly. Analysts use five key pillars to assess these stocks: earnings growth, fundamentals, relative valuation, risk profile and price momentum.

The rationale: by owning businesses where the trajectory is upward on multiple fronts — not just market hype — investors increase their odds of capturing meaningful gains. The report suggests return potential of over 24-30% in one year for the selected stocks, assuming the positive trends continue.

However, the piece also cautions that broader market risk remains elevated due to high valuations and global uncertainties — so even strong stocks should be approached with discipline. For investors, this means a reminder to favour companies showing real improvement in fundamentals rather than chasing narratives alone.