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First Cut Articles

Combining Value and Momentum

July 2013 by John Bajkowski
Low relative valuation ratios are combined with momentum indicators to find potentially winning stocks. Read more »

New Edge Stocks

September 2012 by John Bajkowski
Ten stocks with fundamental factors exhibited by typical market winners. Read more »

Firms With High Sustainable Growth

April 2012 by John Bajkowski
These 30 companies have high return on equity and high earnings retention rates. Read more »

Consensus: Stocks That Pass the Most Screens

January 2012 by John Bajkowski
The 23 stocks that pass four or more of the screens tracked on AAII.com. Read more »

Greenblatt’s Magic Formula

December 2011 by John Bajkowski
These 30 stocks had the highest combined ranking based on Joel Greenblatt’s valuation and return on enterprise measures—the two key components of his Magic Formula. Read more »

Cash Kings

October 2011 by John Bajkowski
A starting point for investors. This issue’s focus is on finding companies with high levels of net cash per share relative to their share prices. Read more »

Relative Strength and Positive Surprises

June 2011 by John Bajkowski
Thirty stocks with improving price momentum, positive earnings surprises and rising earnings estimates. Read more »

Thomsett's Fundamental Tests

April 2011 by John Bajkowski
These 30 stocks pass the tests suggested by Michael Thomsett. Read more »

The First Cut: Cash-Rich Firms

November 2008 by John Bajkowski
A starting point for investors. This issue's focus is on finding companies with high levels of net cash per share relative to their share prices. Read more »

The First Cut: Momentum Stocks With Positive Earnings Surprises

October 2008 by John Bajkowski
A starting point for investors. This issue's focus is on finding companies with positive earnings surprises over the last quarter, coupled with above-average relative price strength. Read more »

The First Cut: Stocks With Low Accrual Ratios

September 2008 by John Bajkowski
A starting point for investors. This issue's focus is on finding companies that actually generate more cash than their accrual earnings indicate by screening for accrual ratios. The accrual ratio is calculated by subtracting free cash flow from net income, dividing the result by total assets and presenting the figure as a percentage. Read more »

The First Cut: Real Dogs: Pet-Care Stocks

August 2008 by John Bajkowski
A starting point for investors. This issue's focus is on finding stocks in the pet-care industry, an area that some investors believe may be "recession-proof." Read more »

The First Cut: Dividend Achievers

July 2008 by John Bajkowski
A starting point for investors. This issue's focus is on finding stocks with the highest long-term dividend growth rate, and stocks with the highest yields. Read more »

The First Cut: Using Enterprise Value to Locate Bargains

June 2008 by John Bajkowski
A starting point for investors. This issue's focus is on finding bargain stocks using a stock's enterprise value to gauge the worth of a company. Read more »

The First Cut: S&P 500 Stocks With High Payout Ratios & Below-Average P/Es

May 2008 by John Bajkowski
A starting point for investors. This issue's focus is on S&P 500 stocks with high dividend payout ratios and below-average price-earnings ratios. Read more »

The First Cut: Declining Total Assets and Positive Earnings Surprises

April 2008 by John Bajkowski
A starting point for investors. This issue's focus is on stocks with the greatest annual decline in total assets, based on a recent research paper suggesting these stocks tend to outperform stocks with the largest increases in total assets. Read more »

The First Cut: Positive Surprises With Below-Average P/Es

January 2008 by John Bajkowski
A starting point for investors. This issue's focus is on stocks with below-average price-earnings ratios whose recent quarterly earnings reports surpassed the consensus forecast. Read more »

The First Cut: Hot Technology Stocks

November 2007 by John Bajkowski
A starting point for investors. This issue's focus is on technology companies with sustainable growth potential. Read more »

The First Cut: Socially Responsible GARP

October 2007 by John Bajkowski
A starting point for investors. This issue's focus is on companies acceptable to many "socially responsible investors" that are profitable and trading at attractive prices relative to expected growth rates. Read more »

The First Cut: Low Price Relative to Net Assets

September 2007 by John Bajkowski
A starting point for investors. This issue's focus is on companies whose stocks are trading at a price that is low relative to their net current assets per share. Read more »

The First Cut: Low P/E Relative

August 2007 by John Bajkowski
A starting point for investors. This issue's focus is on companies with the lowest current P/E relatives versus their five-year average. Read more »

The First Cut: Top-Line Growth and Value

July 2007 by John Bajkowski
A starting point for investors. This issue's focus is on companies with strong and consistent sales growth that they are able to convert into above-average profits, and that remain attractively valued. Read more »

The First Cut: Insider Activity

June 2007 by John Bajkowski
A starting point for investors. This issue's focus is on companies with insider buys that exceeded insider sells over the last six months. Read more »

The First Cut: High and Consistent Growth

May 2007 by John Bajkowski
A starting point for investors. This issue's focus is on exchange-listed stocks that have increased revenue and earnings per share in each of the last five fiscal years. Read more »

The First Cut: Low Price-to-Book Firms

April 2007 by John Bajkowski
A starting point for investors. This issue’s focus is on non-financial, exchange-listed stocks with price-to-book-value ratios among the lowest 10% of all stocks. Read more »

The First Cut: Investing in Vice

February 2007 by John Bajkowski
A starting point for investors. This issue’s focus is on the 30 stocks with the lowest dividend-adjusted PEG ratios that are in the alcohol, tobacco, or casino/gaming industries. Read more »

The First Cut: Revised Earnings Estimates

A starting point for investors. This issue’s focus is on the top 30 stocks that have had an upward revision within the past month of their consensus mean estimates for the current and next fiscal year. Read more »

The First Cut: Recent Stock Splits

A starting point for investors. This issue's focus is on the top 30 stocks that have had significant stock splits in the second half of this year, indicating strong price performance. Read more »

The First Cut: Defensive Growth

The top 30 stocks passing a simple screen for companies in defensive industries with attractive PEG ratios and earnings growth momentum. Read more »

The First Cut: Positive Earnings Surprises

The top 30 stocks that have reported quarterly earnings surpassing the consensus. Read more »

The First Cut: Cash-Rich Firms

The top 30 stocks that pass a screen focusing on firms trading with a high level of net cash per share relative to share price. Read more »

The First Cut: Attractively Priced Dividend Growth

The top 30 stocks that pass a screen focusing on mid- to large-cap dividend growers trading at good values. Read more »