• Basic Membership Access to Journal, Shadow Stock portfolio & monthly updates for stock screens
  • A+ Investor Full access to AAII.com, Journal, and a power data suite for investment ideas
  • AAII Platinum Full access to all of AAII's model portfolios and premium services at a significant discount
  • Dividend Investing Newsletter and model portfolio that focuses on dividend growth
  • AAII Growth Investing Find secular growth stocks poised for outperformance regardless of macroeconomic conditions.
  • Retirement Investing Discover trusted strategies for every stage of retirement. Get actionable insights and resources for smart retirement planning.
  • Sentiment Investing A research-driven newsletter with 10+ signals decoding sentiment across retail and institutional behavior.
  • Stock Superstars Report Get stock ideas inspired by the market's leading professionals
  • VMQ Stocks For the value investor looking to harness academic research in an actively managed portfolio
  • Bits and Bips Newsletter delivering insights on linking traditional finance, macro trends and cryptocurrency opportunities to help investors build stronger, more diversified portfolios.
All premium products come with free basic membership.
Explore All Membership Options
Join Now
Commentary ● October 7

Using Return on Equity to Screen for Profitable Stocks

Michael Rose

This week, we cover a strategy that identifies companies with strong return on equity (ROE) and give you a list of stocks that currently pass the AAII Return on Equity screen. Return on equity may help to reveal profitable firms, but does Wall Street reward the stock prices of these firms? As of September 30, 2026, the AAII Return on Equity screen has an average annual gain of 12.7% since inception in 1998, compared to the S&P 500 index’s 7.5% return over the same period.

Continue Reading

My Stocks
My Stocks (0)
My Screens
My Screens (0)
Power Rankings
Screen Power Rankings (55)
Guru Screens
Stock Guru Screens (37)
Factor Screens
Stock Factor Screens (18)
Premium Screens
Premium Screens (7)
Stock Ratings
Stock Grades (6,704)
Upgrades/Downgrades
Upgrades/Downgrades (15)
Commentary and Reports
Commentary & Reports
Stock Investor Pro
Stock Investor Pro
AAII Shadow Stocks
AAII Shadow Stocks
AAII Shadow Stocks
Monthly Top Performing Stock Lists
Shadow Stock Strategies
Featured Member Strategy

AAII's Model Shadow Stock Portfolio

In 1993, we started a real-money portfolio to show that a consistent investment approach could be followed without a significant time commitment.

Learn our secrets to outpacing the overall market by nearly 2-to-1 over the past 10 years in our exclusive report, How to Win With a Small Cap/Value Approach.

Ranked P/B Ratio as of 10/7/2026

COMPANY NAME TICKER P/B RATIO
LanzaTech Global, Inc. LNZA 0.30
Regis Corporation RGS 0.38
Imperial Petroleum Inc. IMPP 0.40
StealthGas Inc. GASS 0.49
Shoe Station Group Inc. SHOE 0.51

See All 27 Stocks

Login to see the latest Shadow Stock alerts.
Premium Screens PREMIUM STRATEGY ● See All Premium Screens

AAII Dividend Investing Portfolio

The AAII Dividend Investing portfolio seeks income and growth from a diversified portfolio of domestic common stocks paying cash dividends.

Top DI Ideas Ranked by Yield (as of 10/7/2026)

COMPANY NAME TICKER Yield
RLI Corp. RLI 8.5%
Comcast Corporation CMCSA 6.3%
Sonoco Products Company SON 4.5%
Ingredion Incorporated INGR 3.5%
Levi Strauss & Co. LEVI 3.3%

See All 32 Stocks

Stock Grades

A+ Stock Grades

Stocks with grades of B or better across all quant factors as of 10/7/2026.

COMPANY NAME TICKER VALUE GROWTH MOMENTUM EPS REV QUALITY SECTOR
Score Grade Score Grade Score Grade Score Grade Score Grade
American Eagle Outfitters, Inc. AEO 90 A 95 A 76 B 83 A 93 A Consumer Discretionary
CBIZ, Inc. CBZ 63 B 69 B 86 A 71 B 75 B Industrials
Centene Corporation CNC 92 A 89 A 85 A 67 B 71 B Health Care
Darling Ingredients Inc. DAR 67 B 82 A 89 A 83 A 83 A Consumer Staples
Enova International, Inc. ENVA 65 B 69 B 80 B 82 A 80 B Financials

See All 23 Stocks

COMPANY NAME TICKER VALUE GROWTH MOMENTUM EPS REV QUALITY SECTOR
Score Grade Score Grade Score Grade Score Grade Score Grade
Abeona Therapeutics Inc. ABEO 14 F 1 F 34 D 29 D 5 F Health Care
American Superconductor Corporation AMSC 17 F 27 D 23 D 36 D 24 D Industrials
Arbe Robotics Ltd. ARBE 9 F 12 F 9 F 28 D 15 F Information Technology
Ardelyx, Inc. ARDX 25 D 29 D 17 F 32 D 35 D Health Care
Ares Management Corporation ARES 14 F 26 D 36 D 24 D 24 D Financials

See All 81 Stocks

Stock Upgrades and Downgrades

Stock Upgrades & Downgrades

Stocks with at least two upgrades or downgrades across all quant factors. Data as of 10/7/2026, compared to previous trading day.

COMPANY NAME TICKER VALUE GROWTH MOMENTUM EPS REV QUALITY SECTOR
American Integrity Insurance Group, Inc. AII A ▲ NA ▲ A ▲ B ▲ B ▲ Financials
Airgain, Inc. AIRG C ▲ F ▲ C ▲ C ▲ D ▲ Information Technology
Annovis Bio, Inc. ANVS NA ▲ NA ▲ D ▲ B ▲ F ▲ Health Care
AXIL Brands, Inc. AXIL C ▲ D ▲ C ▲ NA ▲ A ▲ Consumer Staples
Evolution Petroleum Corporation EPM B ▲ C ▲ C ▲ C ▲ D ▲ Energy

See All 10 Stocks

COMPANY NAME TICKER VALUE GROWTH MOMENTUM EPS REV QUALITY SECTOR
Elemental Royalty Corporation ELE F ▲ D ▲ C ▼ F ▼ D ▲ Materials
Flutter Entertainment plc FLUT C ▼ B ▲ F ▲ F ▼ B ▲ Consumer Discretionary
Lamb Weston Holdings, Inc. LW D ▼ A ▲ D ▲ A ▲ B ▼ Consumer Staples
Silvercorp Metals Inc. SVM D ▲ A ▲ B ▼ F ▼ B ▲ Materials
Trilogy Metals Inc. TMQ NA ▲ NA ▲ F ▼ F ▼ F ▲ Materials

See All 5 Stocks

Monthly Top Performing Stock Lists

Top Dividend Growth Stocks for September 2026 | Free List from AAII

AAII's September 2026 dividend stock list identifies top dividend-paying stocks screened for reliable income and long-term growth potential. Download the free list, built on research-backed selection criteria.

By AAII Staff | September 2026

Best Small-Cap Stocks to Watch in September 2026 | Free AAII List

AAII's September 2026 small-cap value stock list identifies undervalued companies with strong fundamentals, screened using disciplined investment criteria. Download the free spreadsheet.

By AAII Staff | September 2026

What Are the Top Growth Stocks to Watch in July 2026?

See July 2026's top growth stocks, including CRWD, JNJ, AZO and ROL which are screened for strong earnings and momentum. Download the full list free

By AAII Staff | July 2026

Top Tech Stocks to Watch in July 2026

Discover top tech stocks for July 2026, including ASML, PEP and AMAT. Learn how to evaluate growth potential and get a free curated stock list.

By AAII Staff | July 2026

Top-Performing Value Stocks to Watch in June 2026

From General Motors and Delta Air Lines to Valero Energy and Fox Corporation, our June 2026 Value Stocks List showcases companies with attractive valuations and strong fundamental characteristics.

By AAII Staff | June 2026

Articles

First Cut Stocks,AAII Stock Ideas,Stock Strategies

All-Stars: Stocks That Pass Multiple Screens

A list of the stocks that passed the greatest number of AAII Stock Screens.

By John Bajkowski | October 2026

First Cut Stocks,AAII Stock Ideas,Stock Strategies

All-Stars: Stocks That Pass Multiple Screens

A list of the stocks that passed the greatest number of AAII Stock Screens.

By John Bajkowski | October 2026

First Cut Stocks,Stock Strategies

Spicy Stocks: High-Beta Stocks Showing Relative Strength

If you are looking for some excitement in your portfolio, these volatile stocks went from laggards to leaders.

By Sam Levine | September 2026

AAII Stock Ideas,Small Cap Value Investing

Tiny Titans Screen Targets Stocks That Institutions Miss

This micro-cap approach for the more aggressive investor focuses on undervalued stocks with strong relative momentum.

By John Bajkowski, Michael Rose | September 2026

First Cut Stocks,Market Actions

Best-Performing S&P Composite 1500 Stocks at Midpoint 2026

One of the clearest themes during the first half of 2026 was the remarkable breadth of the artificial intelligence (AI) investment cycle.

By John Bajkowski | August 2026