Kim Kahn

Well, factors like consistent earnings growth, strong cash flow, high profitability, stable demand, strong brands, and solid management.

But B of A points out that since 1987, the lowest-quality stocks, C and D by S&P Quality Ranks, have outperformed the highest-quality, A+, nearly 80% of the time in January.

and funds are heading into this January with elevated quality exposure.

The B of A team screened for low-quality stocks that long-only funds are underweight, but that are buy-rated by B of A analysts.

Among the names?

Amcor, Camden Property Trust, Health Peak Properties, Devon Energy, and Hasbro.

You can see the full list of more than 50 stocks in our story on Seeking Alpha.

I'll put that link in show notes.

Welcome to Seeking Alpha's Wall Street Lunch, our afternoon update on today's market action, news, and analysis.

Good afternoon.

Today is Wednesday, January 7th, and I'm your host, Kim Kahn.

Our top story so far, GameStop's CEO is making a moonshot bet on a return to meme-era valuations.

GameStop announced that its board approved a long-term performance-based stock option award for chief executive Ryan Cohen with no guaranteed compensation.

The package only pays out if the company hits a series of aggressive market value and profit targets.

The award covers options on 171.5 million GameStop shares at an exercise price of $20.66, split into nine tranches tied to market cap and cumulative performance EBITDA.

The stock trades around $21.75 today.

And the milestones?

They start at a $20 billion market cap and $2 billion in cumulative EBITDA and scale up in 10% increments.

Full vesting requires GameStop to reach $100 billion market cap and $10 billion in cumulative EBITDA, numbers that would eclipse even the peak of the mean stock frenzy.

For context, GameStop's current market value is $9.3 billion.