UK Data
This is a mixed-criteria GARP screen inspired by the enjoyable best-seller by Robbie Burns, "The Naked Trader: How Anyone Can Make Money Trading Shares". His approach is primarily value / fundamentals driven: "My investment strategy has always been quite simple: find excellent companies and hold them until the value comes out". While he does appear to use a fair amount of technical analysis in order to time the entry, he appears sceptical about pure TA: "I strongly believe charts are very important to look at.. but I also believe it is simply crazy to buy and sell shares on the basis of looking at a chart and nothing else at all". more »
This screen focuses on a 9 pronged formula focusing on earnings growth and momentum. It has proven to be one of the most successful stock screeens over the last decade. The CANSLIM investing approach has become very famous and well followed in America after being well promoted by Bill O'Neil, a successful trader and founder of Investors Business Daily. The mnemonic stands for the first letter of each of the following: Current Earnings - current interim earnings strongly accelerating vs the prior year; Annual Earnings - annual earnings increases in recent years; New Highs, New Products, New Management - some kind of catalyst; Supply & Demand - small supply of shares and strong demand for the company's stock; Leaders over Laggards - choose the best companies in each sector; Institutional Support - but avoid stocks that are over-owned; Market - only buy when the broad market is in a bull phase. more »
The Zulu Principle is an investment strategy made famous by Jim Slater in the book of the same name. It is a GARP investing style which uses a combination of growth and value, looking for shares where brokers are forecasting high earnings growth, but which are currently valued at a price that is low relative to their forecast earnings. The strategy aims to capture growth companies at a reasonable price by using the PEG Ratio. Slater uses forecast earnings to calculate both PER and the EPS Growth Rate. As Slater puts it: "I have always been attracted to growth shares, particularly those that can be purchased at what I perceive to be a discount to their proper value”. more »
A Growth at a Reasonable price (GARP) investing strategy that uses both fundamental analysis and market timing. It focuses on strong growth in earnings and sales, a reasonable price-earnings ratio given the company's growth rate, insider support, and relatively strong price action. Martin E. Zweig was a reputed US growth money manager back in the 1990’s as well as an investment newsletter writer. He was named stock picker of the year 2 times in a row and wrote a book titled “Winning on Wall Street”, which outlines his investing strategy. Zweig is essentially a growth investor but with a conservative streak, focusing on selecting growth stocks with certain value characteristics, through a system that uses both fundamental analysis and market timing. more »
This is a strategy that aims to highlight companies showing growth at a reasonable price. This is a mix of value and growth investing often abbreviated as 'GARP'. GARP investors typically target more sustainable growth rates of 10% – 20%, as opposed to an aggressive growth investor who might target 25%+ growth rates. GARP investors also tend to focus on a company having a high return on capital (especially relative to their industry average) as an indication of superior potential. You can read more here. more »
A GARP investing approach based on identifying companies with long-term prospects in their early stages before they become "glamour" stocks. Price looked for these characteristics in growth companies: At least a 10% return on invested capital Sustained high profit margins Superior growth of earnings per share. He also looked for: Superior research to develop products and markets. A lack of cutthroat competition. A comparative immunity from government regulation. Low total labor costs, but well-paid employees. more »
Kirkpatrick’s Growth Screen combines quantitative filters for relative price strength and relative reported earnings growth, and then involves point & figure chart analysis to determine whether the stock is in an upward trend. Kirkpatrick also looks for growth companies with market capitalizations of at least $1 billion and share prices of at least $10. Kirkpatrick uses point & figure charts to help in the buy and sell decision process. He only buys stocks for his Growth Model when they are in an upward trend, as indicated by two higher highs in a three-point reversal point & figure chart. You can read more here. more »
The Cornerstone Growth Screen is a growth screen which combines relative strength, earnings growth and a price-to-sales value measure, as outlined in the third edition of James O'Shaughnessy’s seminal 1996 book What Works on Wall Street. According to his book, O'Shaughnessy found that his growth strategy outperformed the market producing an annual compound return of 18% from 1954 to 1996, compared to 8.3% for the S&P 500 Index (this beat his Cornerstone Value strategy which achieved 15%, although it was more volatile). more »
This is a growth screen based on the approach of the late Phil Fisher, one of the great investors of all time and the author of the classic book Common Stocks and Uncommon Profits. Fisher started his money management firm, Fisher & Co., in 1931 and over the next seven decades made tremendous amounts of money for his clients. Philip Fisher had a famous 15 point checklist for investing in stocks. Even though it includes numerous qualitative factors, it's possible to glean some key quantitative criteria too: Consistently strong profitability; Consistent sales growth; Growth exceeding industry norms; Little or no dividend payout; and Reasonable price compared to future growth prospects You can read more about Philip Fisher's approach here. more »
This is a 'fast growers' screen which looks for consistently profitable, relatively unknown, low-debt, reasonably priced stocks with high, but not excessive, growth. Mr. Lynch developed his investment philosophy at Fidelity, and gained his considerable fame managing Fidelity's Magellan Fund. His selection approach is strictly a bottom-up "buy what you know" one. He suggested focusing on companies familiar to the investor, applying fundamental analysis which emphasizes a thorough understanding of the company, its prospects, its competitive environment, and whether the stock can be purchased at a reasonable price. It’s frankly impossible to come up with a screen that exactly replicates Lynch’s multi-faceted investing strategy. Nevertheless, the following approach seeks to emulate some of the key elements of his search for “fast growers”. You can read more here. more »
