• 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 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.

    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

    —John Bajkowski, President, AAII

    Company (Ticker) No.
    Screens Passed P/E
    ($ Mil)
    % Rank
    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.
    John Bajkowski is president of AAII.


    Raymond from CA posted over 4 years ago:

    It is difficult to find the best entry price of a stock, without adding the PEG in any search. Respectfully! Raymond

    Tom from IL posted over 4 years ago:

    lots of build up but no way to access these 23 stocks???

    Tom from IL posted over 4 years ago:

    oops i just found them - sorry

    M from FL posted over 4 years ago:

    Very important are the rankings of 13 and 52 Rel. Strength, being excellent directional indices for demand and supply.

    Albert from CA posted over 4 years ago:

    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?

    Philip from CA posted over 4 years ago:

    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?

    William from FL posted over 4 years ago:

    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.

    John Bajkowski from IL posted over 4 years ago:

    We have not tested past results, but since there seems to be an interest I will see if a follow up article is possible.

    Ralph from NJ posted over 4 years ago:

    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.

    Donald from MI posted over 4 years ago:

    I tracked the performance of last year's selections and posted this article based on a one year holding period;


    Richard from NJ posted over 4 years ago:

    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.

    Jay from WI posted over 4 years ago:

    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!!

    Jeanne from TX posted over 4 years ago:

    Thanks for doing this. What a great idea.

    Ted from CA posted over 4 years ago:

    To Donald from Michigan: Thanks for tracking the performance on seeking alpha.

    Phil from KS posted over 4 years ago:

    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?

    Patrick from WI posted over 4 years ago:

    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.

    David from CA posted over 4 years ago:

    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.

    Geeth from NJ posted over 3 years ago:

    Can any one how to reach this screen in SI Pro


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