This is a strict value strategy based on the writings of David Dreman and focusing on low P/E stocks. David Dreman champions a contrarian investment approach based on interpreting market psychology and using value measures to pick stocks that are out of favour with the market. Dreman invests in out-of-favour stocks, often in out-of-favour industries, that he identifies using relatively straightforward metric criteria. He says: "I buy stocks when they are battered. I am strict with my discipline. I always buy stocks with low price-earnings ratios, low price-to-book value ratios and higher-than-average yield. Academic studies have shown that a strategy of buying out-of-favor stocks with low P/E, price-to-book and price-to-cash flow ratios outperforms the market pretty consistently over long periods of time." You can read more about David Dreman here. To learn more about this strategy please click here »
Dreman is currently the founder, chairman and CIO of Dreman Value Management LLC. Author of 'Contrarian Investment Strategies: The Next Generation'. Regular columnist for Forbes magazine.
Contrarian Investment Strategies dreman
by David N. Dreman
The 'contrarian guru' of investment shows today's financiers how to out perform professional money managers and profit from Wall Street panics.
This screen is based on a UK dataset.
It uses the following criteria:
Results are sorted by:
And limited to the first 200 Results
| Timeframe | Screen Returns | FTSE 100 | Outperformance |
|---|---|---|---|
| 1 week | 3.31% | 2.60% | 0.7% |
| 1 month | 7.50% | 8.23% | -0.7% |
| 3 months | 6.18% | 6.66% | -0.5% |
| 6 months | 19.81% | 18.37% | 1.4% |
| 1 year | 40.68% | 29.17% | 11.5% |
| Since inception | 60.64% | 26.8% | 33.8% |
| Annualised | 39.13% |
| Maximum Drawdown | -13.05% |
| Average No. of Holdings | 9.3 |
| Diversification Level | Moderate |
Chart based on an equal weighted portfolio of max 25 stocks rebalanced quarterly. Qualifying shares below updated daily. Past performance not indicative of future returns.
| Ticker | Name | P/E | Sales £m | Debt To Assets | Current Ratio | Net Mgn % | ROE % | EPS Gwth % | Yield % | Industry Grp | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Subscriber | Subscriber | Metals & Mining | |||||||||
| Subscriber | Subscriber | Food & Tobacco | |||||||||
| Subscriber | Subscriber | Investment Banking & Investment Services | |||||||||
| Subscriber | Subscriber | Metals & Mining | |||||||||
| Subscriber | Subscriber | Construction & Engineering | |||||||||
| Subscriber | Subscriber | Insurance | |||||||||
| Subscriber | Subscriber | Construction & Engineering | |||||||||
| Subscriber | Subscriber | Freight & Logistics Services | |||||||||
| Subscriber | Subscriber | Real Estate Operations | |||||||||
| Subscriber | Subscriber | Semiconductors & Semiconductor Equipment | |||||||||
| Subscriber | Subscriber | Aerospace & Defense | |||||||||
| COMPARE | |||||||||||
Can't see the share you expect? View this screen as a checklist to find out why.
