Consensus: Stocks That Pass the Most Screens
by John Bajkowski
This month’s First Cut presents stocks that passed the greatest number of strategies tracked by AAII. This process was accomplished with a new report that is an enhancement scheduled for an upcoming version of Stock Investor Pro. The report examines the results of every screen selected and identifies which screen any stock passed. As of December 9, 2011, 935 stocks passed at least one of the 63 screens tracked by AAII. However, only 23 stocks passed four or more screens, and they are the stocks that made the First Cut this month. The MAGNET Complex and T. Rowe Price 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.
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Is a stock that passes more than one complete screening approach more attractive than another that just passes a single approach? Possibly, if the screening approaches are sound and varied. 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 area of AAII.com.
—John Bajkowski, President, AAII
| Company (Ticker) |
No. of Screens Passed |
Screens Passed |
P/E Ratio (X) |
EPS Growth Rate (3-Yr) (%) |
Market Cap ($ Mil) |
Relative Strength % Rank |
Share Price (12/9) ($) |
||
|
13-Wk (%) |
52-Wk (%) |
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| Industry | |||||||||
| Andersons, Inc. (ANDE) | 6 | Driehaus, EstRevUp, Oberweis, P/E Rel, PEG(Est, Hist) | 8.3 | -2.5 | 782 | 87 | 86 | 44.03 | Crops |
| Genesco Inc. (GCO) | 6 | EstRevUp, Kirkpatrick(Bargain), O'Shaugh(Gr, SC), Oberweis, PEG(Est) | 19.8 | 99.1 | 1,403 | 90 | 93 | 60.64 | Retail (Apparel) |
| Bio-Reference Laboratories (BRLI) | 5 | Buffett(EPS, SG), IBD Stable70, Inve$tWare, Templeton | 10.9 | 32.1 | 359 | 23 | 31 | 14.01 | Healthcare Facilities |
| World Acceptance Corp. (WRLD) | 5 | Buffett(EPS, SG), IBD Stable70, PEG(Hist), ROE | 11.5 | 24.9 | 994 | 74 | 90 | 69.42 | Consumer Financial Services |
| Ebix, Inc. (EBIX) | 5 | Buffett(EPS, SG), Inve$tWare, Lakonishok, Templeton | 12.0 | 55.7 | 748 | 88 | 53 | 20.64 | Software/Program'g |
| HealthSpring, Inc (HS) | 5 | Kirkpatrick(Bargain), Lakonishok, O'Shaugh(Gr), Oberweis, PEG(Est) | 13.6 | 30.9 | 3,692 | 94 | 96 | 54.47 | Insurance (Accident & Health) |
| LKQ Corporation (LKQX) | 5 | CAN SLIM(V3), IBD Stable70, Inve$tWare, PEG(Hist), Templeton | 22.7 | 29.5 | 4,337 | 85 | 89 | 29.96 | Auto & Truck Parts |
| Buffalo Wild Wings (BWLD) | 5 | Buffett(Hagstrom), CAN SLIM, IBD Stable70, Inve$tWare, PEG(Hist) | 24.5 | 24.1 | 1,139 | 63 | 90 | 62.42 | Restaurants |
| Petroleo Brasileiro SA (PBR) | 4 | ADR, DRPs, Lynch, O'Shaugh(Val) | 6.9 | 9.2 | 169,972 | 60 | 42 | 27.38 | Oil & Gas: Integrated |
| Alliance Resource, LP (ARLP) | 4 | Neff, PEG(Est), PEG(Hist), Zweig | 9.0 | 20.9 | 2,650 | 58 | 80 | 72.23 | Coal |
| Microsoft Corp. (MSFT) | 4 | Dreman, PEG(Est, Hist), Weiss | 9.3 | 12.9 | 213,669 | 49 | 54 | 25.70 | Software/Program'g |
| CNH Global N.V. (CNH) | 4 | ADR, Kirkpatrick(Bargain, Growth, Value) | 10.2 | -7.1 | 9,287 | 92 | 48 | 40.55 | Construct & Ag Mach |
| Intel Corporation (INTC) | 4 | Dow(Dogs, Low Priced 5), Dreman, PEG(Est) | 10.8 | 19.4 | 125,823 | 89 | 81 | 25.01 | Semiconductors |
| Cummins Inc. (CMI) | 4 | Dreman, PEG(Est, Hist), ROE | 11.1 | 12.6 | 17,721 | 69 | 51 | 95.11 | Misc. Capital Goods |
| Sohu.com Inc. (SOHU) | 4 | Buffett(EPS, SG), Murphy Tech, Rule #1 | 12.0 | 59.0 | 1,908 | 21 | 31 | 52.40 | Computer Services |
| NewMarket Corporation (NEU) | 4 | CAN SLIM, O'Shaugh(Gr), PEG(Hist), ROE | 12.5 | 37.7 | 2,589 | 88 | 93 | 199.71 | Chemical Mfg |
| Smith & Nephew plc (SNN) | 4 | Buffett(EPS, SG), Div Yield, Lynch | 13.2 | 26.7 | 8,260 | 46 | 51 | 46.07 | Medical Equip & Sup |
| Credit Acceptance Corp. (CACC) | 4 | Buffett(EPS, SG), Lakonishok, PEG(Hist) | 13.2 | 48.8 | 2,196 | 93 | 92 | 91.18 | Consumer Fin'l Servs |
| Centene Corporation (CNC) | 4 | Lakonishok, O'Shaugh(Gr, SC), Templeton | 18.3 | 25.1 | 1,843 | 88 | 93 | 37.56 | Healthcare Facilities |
| MWI Veterinary Supply, Inc. (MWIV) | 4 | IBD Stable70, Inve$tWare, ROE, Wanger | 19.9 | 28.0 | 845 | 43 | 79 | 67.73 | Biotechnology & Drugs |
| Dollar Tree, Inc. (DLTR) | 4 | Buffett(Hagstrom), IBD Stable70, PEG(Hist), ROE | 22.0 | 30.7 | 9,820 | 82 | 92 | 82.55 | Retail (Department & Discount) |
| Epoch Holding Corp (EPHC) | 4 | Foolish 8, PEG(Hist), ROE, Wanger | 24.5 | 31.4 | 531 | 97 | 91 | 23.78 | Investment Services |
| Cognizant Tech Sol (CTSH) | 4 | IBD Stable70, Inve$tWare, ROE, Templeton | 25.4 | 27.3 | 20,345 | 79 | 57 | 69.38 | Software/Program'g |
|
Source: AAII's Stock Investor Pro, Thomson Reuters, and I/B/E/S. Data as of 12/9/2011. |
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Discussion
It is difficult to find the best entry price of a stock, without adding the PEG in any search. Respectfully! Raymond
posted about 1 year ago by Raymond from California
lots of build up but no way to access these 23 stocks???
posted about 1 year ago by Tom from Illinois
Very important are the rankings of 13 and 52 Rel. Strength, being excellent directional indices for demand and supply.
posted about 1 year ago by M from Florida
Will there be a re-evaluation of the "Consensus" stocks as the months pass? Are other equities added or deleted? Can performance be enhanced with a stop loss or take out signal?
posted about 1 year ago by Albert from California
Wasn't that strategy talked about last year? So what are the results?
Also what that strategy a buy&hold for an entire year or rebalance monthly?
posted about 1 year ago by Philip from California
Has anyone tested this Concensus concept? I have seen previous Concensus lists but I don't recall AAII or anyone else reporting on whether this concept produces superior results.
posted about 1 year ago by William from Florida
We have not tested past results, but since there seems to be an interest I will see if a follow up article is possible.
posted about 1 year ago by John Bajkowski from Illinois
Can you evaluate the past years stocks that past the screens you have adopted.
Do we buy all of these and hold for a year or are there stocks here that that are better for the coming year.
posted about 1 year ago by Ralph from New Jersey
I tracked the performance of last year's selections and posted this article based on a one year holding period;
http://seekingalpha.com/instablog/914029-dark-liquidity/239513-consensus-stocks-pass-the-most-screens-after-one-year-holding-period
posted about 1 year ago by Donald from Michigan
Every time they publish this screen I find a winning stock. I would like AAII to make this article a more regular feature on the website.
posted about 1 year ago by Richard from New Jersey
I agree. My first thought after reading this article was, I wonder if they have ever back tested the results of this new screener?
Looking forward to the results....thanks!!
posted about 1 year ago by Jay from Wisconsin
To Donald from Michigan: Thanks for tracking the performance on seeking alpha.
posted about 1 year ago by Ted from California
Very helpful link to the chart on past performance. Seemed the big losers like solar and tech were impacted by very specific political or technology waves. Some of the winners were established companies like Chevron and Intel. Didn't notice any real stable companies like these two on the loser list. So would it be a good idea to pick the more reliable established companies from this 'super screen' and buy only them?
posted about 1 year ago by Phil from Kansas
I ran the current holdings through Morningstar Advisor and these are the returns:
Portfolio Return: 3 Mo: 13.24, 1 Yr: 20.78, 3 Yr: 53.20, 5 Yr: 25.46, 10 Yr: 34.34
Individual holding performance is quite impressive too. Several have negative one year returns, but there are only two holdings that have a negative period in all of the three, five, or ten year returns. They were very small negatives too.
posted 12 months ago by Patrick from Wisconsin
I would very much like an update regarding when this new report enhancement is scheduled to be included in a new version of Stock Investor Pro as Mr. Bajkowski discussed in the begining of this piece. I am waiting to renew my current subscription based on this timeline because of the potential i feel this screen offers.
posted 11 months ago by David from California
