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The First Cut

July 2013Combining Value and Momentum
Low relative valuation ratios are combined with momentum indicators to find potentially winning stocks.
September 2012New Edge Stocks
Ten stocks with fundamental factors exhibited by typical market winners.
April 2012Firms With High Sustainable Growth
These 30 companies have high return on equity and high earnings retention rates.
January 2012Consensus: Stocks That Pass the Most Screens
The 23 stocks that pass four or more of the screens tracked on AAII.com.
December 2011Greenblatt’s Magic Formula
These 30 stocks had the highest combined ranking based on Joel Greenblatt’s valuation and return on enterprise measures—the two key components of his Magic Formula.
October 2011Cash Kings
A starting point for investors. This issue’s focus is on finding companies with high levels of net cash per share relative to their share prices.
June 2011Relative Strength and Positive Surprises
Thirty stocks with improving price momentum, positive earnings surprises and rising earnings estimates.
April 2011Thomsett's Fundamental Tests
These 30 stocks pass the tests suggested by Michael Thomsett.
December 2010Consensus: Stocks That Pass the Most Screens
These 25 stocks were identified by four or more AAII screens.
November 2010Cash Flow Kings With Rising Dividends
These companies have both raised dividend payments and maintained positive free cash flow for the last seven years.
September 2010Low Price-to-Sales Ratio Stocks
Low price-to-sales ratios may identify undervalued firms sooner than price-earnings ratios.
July 2010Stocks With Low Risk/Reward Scores
Using Charles Rotblut’s risk/reward scoring system to find stocks.
June 2010Attractively Priced Dividend Growth
Identifying high-yield stocks with a record of dividend growth.
May 2010Tortoriello's Quantitative Strategies
Applying Richard Tortoriello's strategies to find investment candidates.
April 2010Socially Responsible Stocks
The 30 stocks most widely held by socially responsible mutual funds.
January 2010Consensus: Stocks That Pass the Most Screens
These 25 stocks were identified by four or more AAII screens.
December 2009Low P/E Stocks With Positive Earnings Surprises
A starting point for investors. This issue's focus is on stocks that have had a significant positive quarterly earnings surprise since September, and that sport a below-average forward price-earnings ratio.
November 2009Attractively Priced Share Buyback Stocks
A starting point for investors. This issue's focus is on finding stocks that have recently repurchased their shares, and have below-average price-to-book-value ratios.
October 2009Stocks on the Move With Price Momentum
A starting point for investors. This issue's focus is on finding stocks with improving relative strength percentage rankings, and the highest prices as a percentage of their 52-week highs.
September 2009Financially Stable Stocks With Low Prices
A starting point for investors. A recent study found that portfolios of low-priced stocks outperformed higher-priced stocks, and the excess performance was not explained by firm factors such as size or valuation. With that in mind, this issue's First Cut focuses on stocks that are selling at prices below $5 per share and that have indications of both long-term financial stability and financial strength.
August 2009Stocks With Possible "Hidden" Earnings
A starting point for investors. This issue's focus is on firms with possible "hidden" earnings, indicated by a record of positive free cash flow that is currently greater than earnings and that are trading with low price-to-free-cash-flow ratios.
July 2009Stocks With a Competitive Edge
A starting point for investors. This issue's focus is on firms with positive sales growth and above-average profit margins.
June 2009High Quality + High Yield + High Growth Stocks
A starting point for investors. This issue's focus is on Lowell Miller's strategy for investing in high-quality growth stocks with high and growing dividends.
May 2009Magic Formula Stocks
A starting point for investors. This issue's focus is on Joel Greenblatt's "Magic Formula" for picking stocks: high returns on capital, and a low price-to-enterprise valu
April 2009Benjamin Graham Bear Market Stocks
A starting point for investors. This issue's focus is on stocks with low prices relative to a firm's net current assets, a basic Benjamin Graham approach to finding stocks trading well below their instrinsic value.
February 2009The Outcasts: Stocks Removed From the S&P 500
A starting point for investors. This issue's focus is on stocks possibly neglected due to their removal from the S&P 500 index.
January 2009All-Star Stocks That Pass the Most Screens
A starting point for investors. This issue's focus is on finding companies that passed the most AAII Stock Screens.
November 2008The First Cut: Cash-Rich Firms
A starting point for investors. This issue's focus is on finding companies with high levels of net cash per share relative to their share prices.
October 2008The First Cut: Momentum Stocks With Positive Earnings Surprises
A starting point for investors. This issue's focus is on finding companies with positive earnings surprises over the last quarter, coupled with above-average relative price strength.
September 2008The First Cut: Stocks With Low Accrual Ratios
A starting point for investors. This issue's focus is on finding companies that actually generate more cash than their accrual earnings indicate by screening for accrual ratios. The accrual ratio is calculated by subtracting free cash flow from net income, dividing the result by total assets and presenting the figure as a percentage.
August 2008The First Cut: Real Dogs: Pet-Care Stocks
A starting point for investors. This issue's focus is on finding stocks in the pet-care industry, an area that some investors believe may be "recession-proof."
July 2008The First Cut: Dividend Achievers
A starting point for investors. This issue's focus is on finding stocks with the highest long-term dividend growth rate, and stocks with the highest yields.
June 2008The First Cut: Using Enterprise Value to Locate Bargains
A starting point for investors. This issue's focus is on finding bargain stocks using a stock's enterprise value to gauge the worth of a company.
May 2008The First Cut: S&P 500 Stocks With High Payout Ratios & Below-Average P/Es
A starting point for investors. This issue's focus is on S&P 500 stocks with high dividend payout ratios and below-average price-earnings ratios.
April 2008The First Cut: Declining Total Assets and Positive Earnings Surprises
A starting point for investors. This issue's focus is on stocks with the greatest annual decline in total assets, based on a recent research paper suggesting these stocks tend to outperform stocks with the largest increases in total assets.
February 2008The First Cut: Navellier's Growth Stock Winners
A starting point for investors. This issue's focus is on stocks that meet Louis Navellier's eight tried-and-true fundamental factors.
January 2008Positive Surpries With Below-Average P/Es
A starting point for investors. This issue's focus is on stocks with below-average price-earnings ratios whose recent quarterly earnings reports surpassed the consensus forecast.
January 2008The First Cut: Positive Surprises With Below-Average P/Es
A starting point for investors. This issue's focus is on stocks with below-average price-earnings ratios whose recent quarterly earnings reports surpassed the consensus forecast.
November 2007The First Cut: Hot Technology Stocks
A starting point for investors. This issue's focus is on technology companies with sustainable growth potential.
October 2007The First Cut: Socially Responsible GARP
A starting point for investors. This issue's focus is on companies acceptable to many "socially responsible investors" that are profitable and trading at attractive prices relative to expected growth rates.
September 2007The First Cut: Low Price Relative to Net Assets
A starting point for investors. This issue's focus is on companies whose stocks are trading at a price that is low relative to their net current assets per share.
August 2007The First Cut: Low P/E Relative
A starting point for investors. This issue's focus is on companies with the lowest current P/E relatives versus their five-year average.
July 2007The First Cut: Top-Line Growth and Value
A starting point for investors. This issue's focus is on companies with strong and consistent sales growth that they are able to convert into above-average profits, and that remain attractively valued.
June 2007The First Cut: Insider Activity
A starting point for investors. This issue's focus is on companies with insider buys that exceeded insider sells over the last six months.
May 2007The First Cut: High and Consistent Growth
A starting point for investors. This issue's focus is on exchange-listed stocks that have increased revenue and earnings per share in each of the last five fiscal years.
April 2007The First Cut: Low Price-to-Book Firms
A starting point for investors. This issue’s focus is on non-financial, exchange-listed stocks with price-to-book-value ratios among the lowest 10% of all stocks.
February 2007The First Cut: Investing in Vice
A starting point for investors. This issue’s focus is on the 30 stocks with the lowest dividend-adjusted PEG ratios that are in the alcohol, tobacco, or casino/gaming industries.
January 2007The First Cut: Revised Earnings Estimates
A starting point for investors. This issue’s focus is on the top 30 stocks that have had an upward revision within the past month of their consensus mean estimates for the current and next fiscal year.
November 2006The First Cut: Recent Stock Splits
A starting point for investors. This issue's focus is on the top 30 stocks that have had significant stock splits in the second half of this year, indicating strong price performance.
October 2006The First Cut: Defensive Growth
The top 30 stocks passing a simple screen for companies in defensive industries with attractive PEG ratios and earnings growth momentum.
September 2006The First Cut: Positive Earnings Surprises
The top 30 stocks that have reported quarterly earnings surpassing the consensus.
August 2006The First Cut: Cash-Rich Firms
The top 30 stocks that pass a screen focusing on firms trading with a high level of net cash per share relative to share price.
July 2006The First Cut: Attractively Priced Dividend Growth
The top 30 stocks that pass a screen focusing on mid- to large-cap dividend growers trading at good values.