• The First Cut
  • All-Star Stocks That Pass the Most Screens

    by John Bajkowski

    All Star Stocks That Pass The Most Screens Splash image

    Is a stock that passes more than one complete screening approach more attractive than another that just passes one screening approach? Possibly, if the collection of screening approaches are based upon solid financial principles and diverse enough to capture unique, yet desirable qualities. The January AAII Journal provides a performance recap of the 50-plus screening strategies tracked by AAII for over 10 years. While it has been a tough year for the market and the majority of the strategies, many approaches continue to provide strong long-term performance and present a good starting point for building a stock portfolio.

    This issue’s First Cut lists the stocks that passed the greatest number of screens as of December 12, 2008. Note the some screens—such as the growth-oriented O’Neil CAN SLIM and the deep value Piotroski approaches—did not have any companies that passed at the time of screening and did not participate in the analysis. Over 1,100 stocks out of the 8,800 stock universe of Stock Investor Pro passed at least one screen; however, only 20 stocks passed at least five screens, and they are the stocks that made the First Cut this month.

    The stocks are first ranked by the number of screens they passed and then by their price-earnings ratio. The price-earnings ratio (share price divided by trailing earnings per share) is a basic valuation measure. The annual earnings growth rate provides some feel for the historical performance of the companies. The market cap (number of shares outstanding times the share price) services as an indication of company size. Short- and intermediate-term stock price performance are highlighted by the relative price strength rank over the last 13 and 52 weeks.

    Company (Exchange: Ticker) No.
    Screens Passed P/E
    (5 Yr)
    ($ Mil)
    % Rank
    Western Digital Corp. (N: WDC) 7 Buffett (EPS, SG), Fisher, Free Cash Flow, P/Sales, ROE, Rule#1 2.8 34.0 2,774 36 45 12.52 Technology
    Garmin Ltd. (M: GRMN) 7 Buffett (EPS, Hag, SG), Lynch, Muhlenkamp, ROE, Rule#1 4.8 42.6 3,968 43 16 19.59 Technology
    Stryker Corporation (N: SYK) 7 Buffett (EPS, SG), Div, Inve$tWare, ROE, Rule#1, Weiss 14.5 22.8 16,149 51 57 40.00 Health Care
    Hansen Natural Corp. (M: HANS) 7 Buffett (EPS, Hag, SG), IBD, Inve$tWare, Templeton, Value on Move (Est) 16.3 106.7 2,706 98 67 29.27 Consumer Non-Cyclical
    PetMed Express, Inc. (M: PETS) 7 Buffett (EPS, SG), IBD, Value on Move (Est, Hist), ROE, Templeton 16.9 38.7 362 90 97 15.39 Services
    C.H. Robinson Worldwide (M: CHRW) 7 Buffett (EPS, SG), Div, IBD, O'Shaughnessy (GML), Templeton, Value on Move (Hist) 24.0 29.0 8,318 85 89 49.16 Transportation
    Lufkin Industries, Inc. (M: LUFK) 6 Buffett (EPS, SG), Graham (DI), Rule#1, Templeton, Weiss 6.2 50.8 506 26 68 34.07 Capital Goods
    Teledyne Technologies Inc. (N: TDY) 6 IBD, Value on Move (Est, Hist), ROE, Templeton, Wanger 12.1 28.7 1,405 56 76 39.18 Services
    Endo Pharmaceuticals (M: ENDP) 6 Est Rev, Lakonishok, Value on Move (Est, Hist), P/Sales, ROE 12.7 41.3 3,160 97 86 23.54 Health Care
    Almost Family, Inc. (M: AFAM) 6 Buffett (EPS, SG), Foolish 8, Value on Move (Est, Hist), Wanger 24.0 41.1 367 97 99 45.10 Health Care
    Chevron Corporation (N: CVX) 5 Buffett (Hag), Div, O'Shaughnessy (GML), Templeton, Value on Move (Est) 6.8 76.0 160,512 88 86 79.00 Energy
    American Oriental Bioeng (N: AOB) 5 Fisher, Muhlenkamp, P/Sales, ROE, Rule#1 8.5 40.9 473 83 56 6.04 Health Care
    Infosys Technologies Ltd (M: INFY) 5 Buffett (EPS, SG), Inve$tWare, Lynch, Templeton 11.1 40.6 13,866 56 61 24.22 Technology
    Continucare Corporation (A: CNU) 5 Fisher, Lynch, Value on Move (Est, Hist), Rule#1 11.6 32.0 124 82 86 1.98 Health Care
    MICROS Systems, Inc. (M: MCRS) 5 IBD, Inve$tWare, ROE, Templeton, Wanger 12.7 31.3 1,286 41 47 16.00 Technology
    FactSet Research Sys (N: FDS) 5 Div, IBD, Inve$tWare, Muhlenkamp, Weiss 14.8 20.6 1,742 54 60 36.78 Technology
    Fastenal Company (M: FAST) 5 Div, IBD, Inve$tWare, Templeton, Weiss 17.4 25.9 4,738 47 78 31.90 Basic Materials
    Immucor, Inc. (M: BLUD) 5 Buffett (EPS, Hag, SG), Rule#1, Templeton 22.1 36.6 1,621 66 77 23.00 Health Care
    Quality Systems, Inc. (M: QSII) 5 Foolish 8, Inve$tWare, Value on Move (Hist), ROE, Templeton 23.1 38.8 1,034 84 97 36.52 Technology
    Expeditors Int'l of Washington (M: EXPD) 5 Buffett (Hag), Div, ROE, Templeton, Weiss 23.9 18.4 6,745 86 73 31.81 Transportation


    John Bajkowski is president of AAII.


    No comments have been added yet. Add your thoughts to the discussion!

    You need to log in as a registered AAII user before commenting.
    Create an account

    Log In