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Stock Ideas
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Stock Ideas
Best Stocks to Buy Now
Value Screeners
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Most Popular Screeners
Ben Graham Net-Net Screen
Ben Graham’s Net-Net screen applies the concept in which one should invest in stocks trading below 66% of net current asset value.
Undervalued-Predictable Screen
The Undervalued-Predictable Screen lists companies with high business predictability and are trading below intrinsic value based on the DCF model.
Buffett-Munger Screen
The Buffett-Munger Screen applies Warren Buffet and Charlie Munger’s strategy of finding good companies at fair prices.
Greenblatt Magic Formula Screen
The Greenblatt Magic Formula Screen applies the Gotham Asset Management guru’s formula of finding companies with high earnings yield and high return on capital.
Ben Graham Lost Formula
This screener is based on an article titled, Benjamin Graham\'s Lost Magic Formula in 1976. Prior to his death, the renowned investor developed a refined formula that screened for companies based on these criteria:
PE Ratio of 7 to 10 or less (Based on 2 times current AAA bond rates)*
Equity/Asset Ratio of 0.5 or more (e.g., Debt/Equity >1)
The formula got its name from the fact that he was unable to publish it before his passing; therefore, it was lost from public knowledge for a time. A backtest of the strategy from 1926 to 1976 showed it would have outperformed the Dow benchmark by approximately twice as much.
Dividend Kings 2023
The Dividend Kings are stocks that have increased their dividends for at least 50 consecutive years.
Dividend Aristocrats 2023
The Dividend Aristocrats are a select group of S&P 500 stocks with 25+ years of consecutive dividend increases.
Peter Lynch Screeners
Peter Lynch Growth Screen
The Peter Lynch Growth Screen lists companies that have good revenue growth and are trading below Lynch’s earnings line, which he set at 15 times earnings per share.
Peter Lynch Stalwarts Screen
The Peter Lynch Stalwarts Screen lists “well-established” companies that still have good long-term growth potential.
Peter Lynch and Warren Buffett
This screener uses Peter Lynch’s strategy to find suitable stocks from Warren Buffett’s portfolio. The companies needs to be profitable and trade below Lynch’s earnings line.
Peter Lynch Growth w Lower Valuation
The companies in this screener have reasonable growth, but low valuations. The screen is limited to the industries that are less cyclical.
High Quality Screeners
High Quality Screen
The companies in this screener are considered high quality. Certain industries are excluded and the companies need to meet the criteria of decent financial strength, profitability and predictability as well as good long-term ROE and ROIC and reasonable growth.
High Quality Low CapEx Screen
The High Quality Low CapEx Screen seeks stocks that have high financial strength, good profitability, and operate in industries with low capital expenditures.
High Quality Low CapEx with ROE ROC Min
The companies found on this screener are considered to be high quality. Certain industries are excluded and the companies need to meet the criteria of good financial strength, profitability and predictability as well as reasonable growth and low capex. These companies have achieved a long-term median ROE and ROIC of more than 15%. The low capex is achieved through industry selections.
Good Companies Screen
The Good Companies Screen lists the companies that have good profitability, returns on capital and well-established revenue and earnings growth.
Growth Stock Screeners
Fast Growers
This screener focuses on companies with fast growth, as defined by the following metrics:
5-year average revenue growth rate per share > 20%
10-year average revenue growth rate per share > 15%
5-year EBITDA per share growth between 20% to 35%
10-year average EBITDA per share growth rate > 20%
Canadian Faster Growers
This screener highlights Canadian companies that have decent revenue and EBITDA growth. You need to have a Canadian region subscription to use it. You can easily modify the criteria to fit other regions as well.
Predictable Growth Companies
The companies in this screener have high predictability and 10-year average growth of more than 8%.
Profitable Predictable Margin Expanders
In this screener, these high-quality companies have at least 10% net margins and have expanded their operating margins over the last 5 years.
Dividend Screeners
Historical High Dividend Yields
The companies that qualify for this screener have long and consistent histories of paying dividends, along with a current dividend yield of more than 4% and a dividend payout ratio of less than 0.5.
High Yield Dividend Stocks
The Dividend Growth Stocks Screen lists high-quality companies that have high dividend growth potential.
Dividend Growth Portfolio
This screener focuses on companies with decent quality and growth that also sport dividend yields of more than 2.1%, payout ratios of less than 0.6 and 5-year average dividend growth of more than 5% a year.
Dividend Income Portfolio
In addition to decent quality and growth, the companies in this screener have been paying dividends consistently for at least 10 years. Additionally, they have a dividend yield of at least 1.5%, a 5-year yield on cost of at least 2.3% and a dividend payout of less than 0.7.
Valuation Screeners
Historical Low PB Screen
The Historical Low Price-Book Screener lists stocks that not only have predictable revenue and earnings growth, but also have price-book ratios less than 50% above their historical lows.
Historical Low PS Screen
The Historical Low Price-Sales Screener lists stocks that not only have predictable revenue and earnings growth, but also have price-sales ratios less than 50% above their historical lows.
52 Week-low Stocks
Gurus like Robert Rodriguez, Arnold Van Den Burg, and Carl Icahn seek companies trading either at a new low or close to its exiting low. Icahn, an avid activist investor, once said he buys "companies that are not glamorous and usually out of favor" and that it is better if the entire industry is out of favor. GuruFocus provides several lists of companies that are trading near historical lows: 52-week lows, three-year lows and five-year lows.
52-Week High Stocks
Technical investors might view stocks trading at or near historical highs as a momentum indicator: According to Investopedia, stock traders might buy a stock when its price exceeds its 52-week high and sell when its price exceeds its 52-week low. The rationale is that if the stock breaks out from the 52-week range in either direction, there is enough momentum to continue the price move in the same direction. GuruFocus provides several lists of companies that are trading near historical highs: 52-week highs, three-year highs and five-year highs.
Stocks Sold Below Cash
This screener uses a customized filter to to look for stocks that are trading below the company’s net cash. In The Intelligent Investor, Benjamin Graham defines Net Cash as “Cash and short-term investments - total liabilities”
PFCF Screen
This very simple screener looks for stocks that are trading at price-free cash flow ratios of less than 10. The intrinsic value is calculated from the Discounted Cash Flow model with default parameters, which is only suitable for predictable companies (Business Predictability Rank higher than 1-Star).
Guru and Insider Screeners
S&P 500 Grid
The S&P 500 Grid allows you to track the stocks on the Standard & Poor’s 500 index in terms of guru buys, guru owns guru sells, or guru net buys. You can either order the S&P 500 Grid in terms of number of gurus or the combined weighting. You will find that the S&P 500 Grid is like the aggregated portfolio of gurus in the sense that the Grid ranks the stocks from the broadest-owned stocks to the narrowest-owned stocks. For example, if you select to view the buys, you will see the most-bought stocks near the upper-left corner and the least-bought stocks near the bottom-right corner.
Hedge Fund Guru Top 10 Aggregated
This screener shows the aggregated portfolio of the top 10 holdings of Goldman Sachs’ list of hedge funds. As with all other screeners, you can add more filters to narrow down the options to fit your preferences or add/remove your favorite gurus into the list.
International Gurus' Top Holdings
The stocks that appear on this screener consist of an aggregation of non-U.S. global companies that gurus have invested in. As with all other screeners, you can add more filters to narrow down the options to fit your preferences or add/remove your favorite gurus into the list.
High Yield Insider Buys
The companies on this screener have a dividend yield of at least 3.1%, and the insider has bought at least $100,000 worth of shares recently. One of the greatest investors of all time, Peter Lynch, was noted as saying that "insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise."
CEO Buys
This screener details CEO buys with more than 1000 shares over the past month. One of the greatest investors of all time, Peter Lynch, was noted as saying that "insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise." As with all other screeners, you can add more filters to narrow down the options to fit your preferences.
CEO Buys after Price Drop > 20%
This screener highlights the CEO buys composed of at least $100,000 value. Additionally, it shows those stocks whose price dropped more than 20% within a month. One of the greatest investors of all time, Peter Lynch, was noted as saying that "insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise."
Short Screeners
High Short Interest Screen
As its name implies, the "High Short Interest" screen lists the companies with a high number of shares short compared to total shares outstanding. Short selling allows investors to seek a profit on stocks they expect will decline. Investopedia adds that the short interest ratio allows investors to gauge investor sentiment on the stock; for example, if a stock’s short interest increases in a certain period, it suggests more people believe the stock will fall. Contrarian investors might use this as a bullish signal because if everyone is selling, the stock might be viewed as undervalued.
James Montier Short Screen
In May of 2008, James Montier, a fund manager at GMO LLC, couldn't find attractive investment opportunities, so he wrote an article about short selling entitled “Joining the Dark Side: Pirates, Spies and Short Sellers.” This screener is based on his research, which found the ideal short candidates are companies that have the following characteristics: A price-sales ratio higher than 90% of the industry A Piotroski F-Score of 3 or less Double-digit average annual asset growth over the past five years
Margin Decliners
Companies that qualify for this screener have a 5-year average gross margin decline of at least 3% a year. Margin decline usually means a company has lost its competitive advantages. These stocks can also be good candidates for shorting.
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