Shares in Lagercrantz Ab (STO:LAGR B) are at the moment buying and selling at 178.four however the query for buyers is how a lot the market chaos of 2020 will influence on its price.The reply comes right down to judging whether or not Lagercrantz Ab is effectively positioned to experience out financial shocks and market volatility. To try this, you need to have a look at its profile to see the place its strengths lie.Lagercrantz Ab is a big participant available in the market’s Electrical Elements & Tools sector. The excellent news is that it scores effectively towards some necessary monetary and technical measures. Specifically, it has sturdy publicity to 2 influential drivers of funding returns: prime quality and powerful momentum.Right here is why that is is necessary…GET MORE DATA-DRIVEN INSIGHTS INTO STO:LAGR B »Why high quality stocks pay offWhen it involves stock evaluation, firm high quality tends to indicate up in excessive profitability and powerful industry-leading margins. These sorts of corporations are steady, rising and sometimes have accelerating gross sales and earnings. Additionally they have sturdy and enhancing monetary histories with no indicators of accountancy or chapter threat.One of many stand out high quality metrics for Lagercrantz Ab is its 5-year Return on Capital Employed, which is a strong 19.7%. Good, double-digit ROCEs are a pointer to corporations that may develop very profitably.Harnessing the ability of momentumPositive momentum traits present up in share costs and earnings development. You could find the clues in stocks which might be buying and selling near their 52 week excessive costs and outperforming the market. They’ll typically be beating dealer estimates and getting forecast upgrades and suggestion modifications.That is true at Lagercrantz Ab, the place the share price has seen a 50.1% return relative to the market over the previous 12 months. Market volatility and financial uncertainty generally is a main drag on momentum, however beforehand sturdy stocks will be fast to get better when confidence returns.In abstract, good high quality and momentum are tips that could a number of the finest stocks on the strongest uptrends. This mixture of things generally is a clue to discovering shares that may ship strong funding income over a few years.In good occasions, these shares can turn into costly to purchase. However in unstable markets, there may be probabilities to purchase them at knock-down costs.Discover the strongest shares within the stock marketFinding good high quality stocks with sturdy momentum behind them is a method utilized by a number of the world’s most profitable buyers. If you wish to discover extra shares that meet these guidelines, you’ll be able to see a complete listing on Stockopedia’s StockRanks web page.