• The First Cut
  • Consensus: Stocks That Pass the Most Screens

    by John Bajkowski

    Consensus: Stocks That Pass The Most Screens Splash image

    This month’s First Cut filters for the stocks that passed the greatest number of strategies tracked by AAII. This process is accomplished by examining the results of every screen and identifying stocks passing more than one strategy. As of November 12, 2010, 1,024 stocks passed at least one of the 60 screens tracked by AAII. However, only 25 stocks passed four or more screens, and they are the stocks that made the First Cut this month. Note that some screens such as the growth-oriented O’Neil CANSLIM and the deep-value Graham Enterprising approaches did not have any companies that passed at the time of screening.

    The stocks are first ranked by the number of screens passed and then by their price-earnings ratio. The price-earnings ratio (price divided by trailing earnings per share) is a basic valuation gauge. The earnings growth rate measures bottom line performance. Market capitalization (number of shares outstanding times the price) measures firm size. Stock price performance is highlighted with relative price strength ranks over the last 13 weeks and 52 weeks.

    While you cannot automatically consider a group of consensus stocks to be a diversified portfolio, they may present a good First Cut for constructing your personal portfolio. Optimally, the group of screening approaches a stock passes is diverse enough to capture unique, yet desirable qualities. Further information on each of the screening strategies can be found at the Stock Screens

    —John Bajkowski, President, AAII

    Company (Ticker) No.
    Screens Passed P/E
    ($ Mil)
    % Rank
    EZCORP, Inc. (EZPW) 6 Buffett(Hagstrom), IBD Stable70, Inve$tWare, PEG(Est, Hist), Zweig 12.9 30.6 1,315 87 90 25.19 Consumer Fin'l Serv
    China Automotive Systems, Inc. (CAAS) 6 Buffett(EPS, SG), P/E Rel, Rule #1, Templeton, Wanger 14.1 54.9 428 21 36 15.78 Auto & Truck Parts
    MWI Veterinary Supply (MWIV) 6 Driehaus, IBD Stable70, Lakonishok, PEG(Hist), ROE, Zweig 21.8 24.5 725 73 85 58.79 Biotech & Drugs
    World Acceptance Corp. (WRLD) 5 Buffett(EPS, SG), Driehaus, IBD Stable70, PEG(Hist) 8.3 21.0 653 47 84 41.72 Consumer Fin'l Servs
    Telefonica S.A. ADR (TEF) 5 ADR, Neff, O'Shaugh(Val), PEG(Est, Hist) 10.3 20.7 111,405 52 28 74.03 Communic'ns Servs
    Brush Engineered Material (BW) 5 EstRev5%, Kirkpatrick(Val), Lakonishok, Oberweis, P/Sales 23.7 -31.0 710 92 92 34.90 Electronic Inst. & Controls
    Buffalo Wild Wings (BWLD) 5 IBD Stable70, Inve$tWare, PEG(Hist), Templeton, Zweig 24.1 22.5 880 70 57 48.40 Restaurants
    Valassis Communic'ns (VCI) 4 P/FrCashFl, Fund'l Rule, Magic For, Neff 4.2 8.3 1,542 29 93 31.05 Advertising
    ITT Educational Servs (ESI) 4 P/FrCashFl, IBD Stable70, Magic For, Neff 5.6 42.7 1,906 22 17 59.73 Schools
    Western Digital Corp. (WDC) 4 Buffett(EPS, SG), Magic For, ROE 5.9 33.4 7,487 84 27 32.58 Computer Storage
    Amedisys, Inc. (AMED) 4 Fisher, P/FrCashFl, Muhlenkamp, Rule #1 6.2 41.7 809 64 21 27.86 Healthcare Facilities
    TRW Automotive Holdings Corp. (TRW) 4 EstRev5%, Kirkpatrick(Bargain), O'Shaugh(Grth), Oberweis 8.1 -33.2 5,987 85 95 49.65 Auto & Truck Parts
    UnitedHealth Group  (UNH) 4 Dreman Est Rev, P/E Rel, PEG(Est, Hist) 9.2 2.9 40,335 59 69 36.67 Insur (Accid & Hlth)
    Chevron Corp. (CVX) 4 DivYd, DowDgs, DRPsHiYd, O'Shaugh(Val) 10.2 -12.4 171,942 50 50 85.44 Oil & Gas - Integr'd
    ReneSola Ltd. ADR (SOL) 4 EstRev5%, Magnet, O'Shaugh(Grth), Oberweis 10.6 -52.4 966 91 98 11.13 Semiconductors
    Telecom Argentina S.A. ADR (TEO) 4 Buffett(Hagstrom), Dreman, Lynch, PEG(Hist) 11.1 30.2 4,780 73 77 24.28 Communic'ns Servs
    Research In Motion (RIMM) 4 Buffett(EPS, SG), IBD Stable70, ROE 11.3 57.7 30,841 50 33 58.80 Communic'ns Equip
    Intel Corp. (INTC) 4 DivYd, Dow Dogs, O'Shaugh(Val), P/E Rel 11.6 -3.6 120,094 55 49 21.53 Semiconductors
    IDACORP, Inc. (IDA) 4 Dreman, Dreman EstRev, Driehaus, Graham 12.0 4.1 1,785 34 67 36.34 Electric Utilities
    LDK Solar Co., Ltd. (LDK) 4 Kirkpatrick(Barg, Grth), Magnet, Oberweis 12.4 -101.9 1,647 95 94 12.53 Semiconductors
    Psychiatric Solutions, Inc. (PSYS) 4 EstRev5%, IBD Stable70, P/E Rel, Templeton 12.4 23.7 1,929 33 86 33.68 Healthcare Facilities
    Novartis AG ADR (NVS) 4 ADR, DRPsHiYd, O'Shaugh(Val), PEG(Hist) 12.8 8.6 127,393 52 46 55.64 Major Drugs
    Johnson & Johnson (JNJ) 4 DivYd, Dow Dogs, O'Shaugh(Val), Weiss 13.1 5.7 174,854 50 43 63.67 Major Drugs
    LKQ Corp. (LKQX) 4 IBD Stable70, Inve$tWare, PEG(Hist), Templeton 20.1 30.1 3,257 64 68 22.55 Auto & Truck Parts
    Cognizant Technology Solutions (CTSH) 4 IBD Stable70, Inve$tWare, PEG(Hist), ROE 29.0 32.2 19,189 47 79 63.23 Software & Programming
    John Bajkowski is president of AAII.


    Ronald from NY posted over 5 years ago:

    Why isn't a consensus screen inserted in to Stock Investor Pro ?

    Ganesh from NY posted over 5 years ago:

    Can you add consensus screen, as independent new 70th screen?

    C from TX posted over 5 years ago:

    OK, I've been doong something similar by hand for quite a while. Tkae a lot of unnecessary time since it could easily be done by the computer, if we had such a program. How come there isn't a similar analysis available in Stock Investor Pro?

    Walter from FL posted over 5 years ago:

    I think the investment results of this type of screen would be interesting!

    CSarahan from DC posted over 5 years ago:

    What has the return using the consensus approach?

    Joan from NJ posted over 5 years ago:


    Gordon from NC posted over 5 years ago:

    why is your website slower than molasses in the wintertime, and why do I get an error message simply by clicking a link within your slow site??

    Karen from FL posted over 5 years ago:

    Liked this article. Thank you.

    W from FL posted over 5 years ago:

    I think it would be a good idea to list the top
    ten or fifteen stocks that pass the most AAII screens each year in the January issue and the return on a portfolio of stocks listed from the previous January issue.

    Donald from FL posted over 5 years ago:

    Me, thinks I will write a little excel formula for this.

    Donald from MI posted over 5 years ago:

    Here is a performance update for those that are interested.


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