Year-End Stock Screens Wrap-Up

Comments on “2024 Review of AAII Stock Screens: Rule #1 Rules,” by John Bajkowski, in the January 2025 AAII Journal:

Very useful info. In a bull market, O’Neil’s CAN SLIM stocks do well. In a bear market, Estimate Revisions Down stocks take a hit (so go short). In a stock-picker’s market, individual stock-picking skill matters. Hence, one can see a huge variation in the list. But the O’Shaughnessy Tiny Titans and Estimate Revisions Up 5% screening strategies do well. The key is to buy the small caps early when the market opens and not after a gap up of 15%.
— Manjunath S. from California

Is there a particular day of the month when performance updates are posted? What is a good day of the month to check the screens for updates? How do other AAII members take this approach to investing using screens?
—Paul G. from New York

AAII editors respond:
The performance charts reflect buying and selling every month at the month-end closing. The price gains only (dividends excluded) for the portfolios are tracked. The lists of passing companies are updated daily for those looking for fresh ideas. Check the Stock Screening Community at the AAII Community page to see how members use the screens. Thanks for your interest.

Understanding Stock Analysis Metrics

Comment on “Quickly Assess a Stock’s Attractiveness With These Metrics,” by Charles Rotblut, in the January 2025 AAII Journal:

Where do AAII members find the formula for each of the metrics? Some titles are confusing without understanding those details (i.e., operating cash flow and net cash flow).
—Mark E. from Iowa

AAII editors respond:
The formulas are included in the most recent Financial Statements column, published in the January 2025 issue, “18 Financial Ratios That Shed Light on a Company’s Strengths and Weaknesses.” Go to the Financial Satement Articles page for the complete series.

Evaluating Actively Managed Bond Funds

Comment on “Where to Find the Best Yields in Active Bond Mutual Funds and ETFs,” by Cynthia McLaughlin, in the January 2025 AAII Journal:

The fact that a given stock or exchange-traded fund (ETF) yields 10% seems meaningless when the average annual return is only 4%. I would prefer to see annual returns based on the trading price of the stock or ETF, exclusively. That way, you actually know what cash flow you are getting.
—David H. from Nevada