The IBD Stable 70: Screening for Long-Term Growth and Stability
by Wayne A. Thorp
In 2001, the analysts and editors at Investors Business Daily (IBD) 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 stocks. The fruit of their efforts was the IBD Stable 70 list, consisting of companies with strong and stable long-term earnings growth.
The IBD Stable 70 screen was short-lived within the pages of Investors Business Daily. However, a screen that follows the IBD Stable 70 approach is built into Stock Investor Pro, AAIIs fundamental stock screening and research database. In 2004, the IBD Stable 70 screen was the top growth screen among those tracked by AAII, up 29.0%. [For more on 2004 stock screen performance figures, see Stock Strategy Winners From the 2004 Performance Derby by John Bajkowski, in the January 2005 AAII Journal and available at AAII.com.]
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