IBD Stable 70: Surviving Downturns With Long-Term Earnings Growth
by Wayne A. Thorp
Two years ago, the analysts and editors at Investors Business Daily attempted to identify the characteristics of those companies that had weathered the recent economic and stock market downturn. The goal was to apply those factors going forward to identify recession-proof companies. The fruit of their efforts was the Stable 70 list, which consists of companies with strong and stable long-term earnings growth.
Using AAIIs Stock Investor Pro fundamental stock screening and database program, we recreated the IBD Stable 70 screen. The screening criteria, based upon our interpretation, are:
- Earnings per share from continuing operations for the trailing 12 months is equal to or greater than earnings per share from continuing operations for the last fiscal year
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