Two of the more popular features of A+ Investor are the Stock Screens and the A+ Stock Grades. But did you know you can see the aggregate grades for each screen based on the current set of passing companies?
The A+ Stock Grades system is a grading tool based on percentile rankings of key metrics within five investment factors: value, growth, momentum, EPS estimate revisions and quality. The grades represent a summary of a company’s fundamentals and give you a quick overview of how a stock rates based on the five investment factors that have been shown to produce market-beating results.
At the Screening area of AAII.com, you will find the calculation of aggregate stock grades for all of the AAII Stock Screens.
To access the complete list of all the stock screens AAII has developed and tracks, select the “Explore All Screens” from the Screening drop-down menu on AAII.com:
The link will take you to the All Screens view, with a table listing the 60+ stock screening strategies AAII tracks:
By default, the All Screens list displays the Performance tab with various periodic performance stats for all the stock screens AAII tracks. You can sort the table by any of the performance columns. In addition, the Factors column indicates the underlying characteristics of the various screens. For example, the O’Shaughnessy Tiny Titans screen, which has an annual average price gain of 22.7% over the past 10 years, uses filters identified with value (V) and momentum (M) investing while focusing on small companies (S for size). The screen looks for micro-cap companies with market capitalizations between $25 million and $250 million. In addition, the price-to-sales ratio must be less than 1.0. Lastly, the strategy isolates the 25 stocks with the greatest relative price strength over the last 52 weeks.
The All Screens table also has a Grades sub-tab:
This table shows the average scores and corresponding grades for each AAII stock screen based on the companies that currently meet the screen’s criteria. The passing companies and average screen grades are updated daily through the previous trading day’s close (an exclusive only for A+ Investor and Stock Investor Pro subscribers).
Clicking on the down arrow to the right of each screen name will show you the companies currently passing the screen, their individual A+ Stock Grade (and score) and their sector as defined by The Refinitiv Business Classification (TRBC). For example, as of the close on March 18, 2022, 14 stocks passed the David Dreman With Estimate Revisions screen:
Based on the A+ Stock Grades for these 14 companies, the Dreman With Estimate Revisions screen has the following average grades:
By providing the average A+ Stock Grades for all of the stock screens, you get a clear picture of the types of stocks that pass each screen based on their factor profiles. This, in turn, will help you decide whether a given strategy fits your own investment philosophy.
If you gravitate more toward value stocks, you may not be interested in stock screens where the average A+ Value Grades are consistently D’s or F’s. Likewise, growth investors may want to look past those screens with low average A+ Growth Grades.
