The American Association of Individual Investors updated its
stock screens a few days ago, with this warning:
“Typically, firms with high growth potential trade with correspondingly
high price-earnings ratios, while those with low price-earnings ratios are
expected to have low growth or high risk.
“Screening just for stocks with a low price-earnings ratio may
leave you with a list of companies with little or no growth prospects or great
uncertainty regarding the prospects of the firm. “
My favorite
AAII screen— Value on the Move: PEG With Est Growth—explores “some of the basic
techniques used to combine value and growth measures to identify companies
experiencing growth.”
The stocks of 11 companies passed the screen’s criteria. These
three led the others: IMKTA, LXFR, GNC.
AAII members can get the full list of 11 by going to:
Nonmembers can see the considerable benefits of becoming a $29
member of AAII at:
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