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AAII Stock Ideas First Cut Stocks

All-Star Stocks Passing the Most Screens

We examined the results of every stock screen and identified the stocks passing more than one strategy.

by Derek J. Hageman | January 2022

Derek Hageman leads a class in AAII's new Essential Investing Video Course. Go to https://www.aaii.com/ves for more information and to subscribe.

Featured Tickers:

This month’s First Cut Stocks lists those that passed the greatest number of screens tracked by AAII at the Screening area of AAII.com. This process is accomplished by examining the results of every stock screen and identifying stocks passing more than one strategy.

As of December 10, 2021, 1,034 stocks passed at least one of the screens tracked by AAII, but only 11 stocks passed five or more screens. Those 11 are the ones that made this month’s First Cut.

In looking at the stocks that pass the screens, an interesting question arises: Is a stock that passes multiple complete screening approaches more attractive than another stock that just passes one screening approach? Possibly, if the screening approaches that a stock passes are based upon solid financial principles and are diverse enough to capture unique yet desirable qualities.

The stocks are ranked by how close their current price is to their 52-week high price. With the dramatic market ups and downs in November and the first half of December 2021, some companies had bigger declines. These stocks would be toward the bottom of the table.
 

Stock All-Stars Passing the Most Screens
(Ranked by Price as Percent of 52-Week High Price)

Company Ticker # of Screens Passed Screens Passed Share Price
($)
Last Price
(12/10)		 Share Price
($)
52-Wk
High-Low		 P/E Ratio
(X)		 EPS Dil
Cont Growth
12-Mo
(%)		 EPS Dil
Cont Growth
3-Yr
(%)		 Market Cap
($ Mil)		 Industry
Builders FirstSource, Inc. BLDR 7 Dreman w/Est Rev, Est Rev Top 30 Up, Est Rev Up 5%, Kirkpatrick Bargain, Kirkpatrick Grth, Kirkpatrick Value, P/E Relative 79.57 (80.95– 35.30) 10.8 303.9 65.5 14,889 Construction Supply & Fixture
Penske Automotive Group, Inc. PAG 5 Lakonishok, Oberweis Octagon, P/E Relative, Value on the Move PEG With Est Grth, Value on the Move PEG With Hist Grth 105.68 (114.34– 55.64) 7.9 142.7 16.1 8,115 Retailers - Autos, Parts & Serv
ArcBest Corp. ARCB 6 Est Rev Up 5%, Kirkpatrick Bargain, Lakonishok, O’Shaughnessy Grth II, Oberweis Octagon, P/E Relative 107.87 (116.79– 41.22) 16.8 309.1 28.3 2,728 Freight & Logistics - Ground
Atlas Air Worldwide Holdings AAWW 5 Driehaus Revised, Est Rev Up 5%, Lakonishok, Oberweis Octagon, Piotroski High F-Score 87.20 (95.00– 50.22) 5.1 286.3 54.7 2,517 Freight & Logistics - Courier Services
Mueller Industries, Inc. MLI 5 Buffett Hagstrom, Dual Cash Flow, Kirkpatrick Bargain, Oberweis Octagon, Value on the Move PEG With Hist Grth 57.59 (63.07– 32.84) 8.6 187.1 24.6 3,304 Industrial Machinery & Equip
KKR & Co Inc. KKR 5 Est Rev Up 5%, O’Shaughnessy Grth Market Leaders, P/E Relative, Value on the Move PEG With Est Grth, Value on the Move PEG With Hist Grth 75.34 (83.90– 37.49) 8.5 440.0 15.9 65,202 Investment Mgmt & Fund Opers
Kulicke and Soffa Industries KLIC 5 Est Rev Up 5%, Murphy Technology, Neff, P/E Relative, Value on the Move PEG With Est Grth 66.41 (75.29– 31.24) 11.5 599.4 36.1 4,263 Semiconductor Equip & Test
Cross Country Healthcare, Inc. CCRN 8 Est Rev Top30 Up, Est Rev Up5%, Kirkpatrick Barg, Kirkpatrick Grth, Kirkpatrick Val, O’Shaugh GrthII, O’Shaugh SmCp Grth&Va, Oberweis 25.58 (29.45– 8.60) 16.1 405.8 (31.7) 956 Employment Services
Encore Wire Corporation WIRE 6 Kirkpatrick Bargain, Kirkpatrick Grth, Kirkpatrick Value, Magic Formula, O’Shaughnessy Grth II, Oberweis Octagon 128.48 (151.64– 54.89) 6.3 579.3 12.8 2,564 Electrical Compon & Equip
Signet Jewelers Ltd. SIG 6 Dreman With Est Revisions, Kirkpatrick Bargain, Kirkpatrick Grth, Kirkpatrick Value, O’Shaughnessy Grth II, Price-to-Free-Cash-Flow 87.97 (111.92– 24.92) 7.6 615.3 (29.3) 4,625 Retailers - Apparel & Accessories
Avis Budget Group Inc. CAR 5 Est Rev Top 30 Up, Est Rev Up 5%, Kirkpatrick Bargain, Kirkpatrick Grth, Lakonishok 243.98 (545.11– 34.41) 19.7 289.5 (96.3) 13,898 Passenger Transportation
Source: AAII Stock Investor Pro, Refinitiv and I/B/E/S. Data as of 12/10/2021.

 

The table lists the price-earnings ratio (price divided by trailing earnings per share) as a basic valuation measure. The annual earnings growth rate provides a simple historical indication of the bottom-line company performance over the last year and three years. The market capitalization (number of shares outstanding times the share price) is a common way to measure the size of a firm.

Of the 11 all-star stocks that passed the most screens, seven of them passed the Estimate Revisions Up 5% screening strategy. Revisions made by analysts to earnings estimates lead to price adjustments similar to earnings surprises. When earnings estimates are revised significantly upward—5% or more—stocks tend to show above-average performance. Changes in estimates reflect changes in expectations of future performance.

While you cannot automatically consider a group of consensus stocks to be a diversified portfolio, they may present a good First Cut for finding investment candidates. Optimally, the group of screening approaches a stock passes is diverse enough to capture unique, yet desirable qualities. Further information on each of the screening strategies can be found at the Screening area of AAII.com. See also the year-end review of AAII stock screens in this issue.

Discussion

Amin M from TN posted over 4 years ago:

Where can I get the above (stocks passing multiple screens) on AAII or how do i do screen this by myself?


DEREK H from CO posted over 4 years ago:

Stocks passing multiple screens is available to A+ Investor subscribers. Once logged into the AAII website, the URL is https://www.aaii.com/stockideas/myscreens. You can find it by going to AAII's website and then hover over the "Investing Ideas" heading and then select "Stock Ideas." Next, at the top of the page, click on "My Screens." In this section, you will see a tab called "Stocks Passing Multiple Screens."


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