The next time you are checking out a stock with AAII’s Stock Evaluator, go to the bottom of the Snapshot page to see which AAII stock screens the stock is currently passing. Along with a brief description and one-year return for the screen, the top stocks currently passing the screen are shown.
For much more information, click through to the screen page by selecting either “view all” next to the top stocks, or the “formula” button underneath.
The screen’s webpage gives more in-depth performance data at the top. Then you see the complete list of passing companies, which is updated daily for A+ Investor subscribers exclusively. Below that is a full explanation of the philosophy of the approach and how the screen was built.
In this example, Microsoft Corp. (MSFT) meets the criteria of one methodology, the Lakonishok screen. At the top of the screen’s page, next to its name, you can click the star to follow the screen. As an A+ Investor subscriber, following a screen allows you to check the passing stocks each day from the Stocks page (the My Screen link). The list of passing stocks can be exported to an Excel file.
Screen performance is updated on the first of every month. You also can export monthly performance data going back 20 years.
Below the list of passing stocks, the Learn How To Do It section provides the framework and guiding principles of a screen. The Lakonishok screen is a guru-based approach named for the professor turned manager Josef Lakonishok, one of the principals at the Chicago-based LSV Asset Management, which manages over $6 billion in assets. His approach features value and momentum factors. The explanation of the methodology details how Lakonishok would hypothetically use specific financial measurements to find stocks highlighting value and momentum. The end of the article shows a list of criteria AAII developed based on this approach.
