There are several factors that can be looked at when scrutinizing stocks utilizing quantitative analysis:
-- narrow the range of investments to companies of a certain size measure by either market capitalization or by revenues.
-- set the criteria and examine only companies that meet these criteria. It can be viewed as "mechanical models" and buy and sell purely based on what comes up on the screen. This removes the emotions from the investment process.
-- Companies often routinely beat analyst estimates for earnings per share or revenues. This kind of growth is viewed as a sign that things are really good for the company.
CANSLIM -- pioneered by William J. O'Neil. Describes what to look for in a company quantitatively.
Annual earnings, New products, markets, or management, Small capitalization and big volume demand,
Leader or Laggard, Institutional sponsorship, Market direction
Arguments against quantitative analysis:
It hinges on screen anyone can use. This makes pricing inefficiencies disappear soon after they are discovered since everyone will now about them as soon as they appear.