7 Promising Small-Cap Growth Stocks for 2017

Celebrated investor James O’Shaughnessy wrote What Works on Wall Street (1996) after conducting exhaustive research concerning the performance of a host of investment strategies. This work led to the development of his Cornerstone Growth Strategy, outlined by Validea CEO John Reese in this week’s TheStreet. Using the screening model Reese fashioned after the O’Shaughnessy strategy, he identified the following 7 small-cap picks: Of the seven, he highlighted the following stocks that scored well under other Validea models: Huntington Ingalls Industries (HII) designs, builds, overhauls and repairs ships for the U.S. Coast Guard and the U.S. Navy and scores well based […]

Guru Stock Screen of the Week: The Top Momentum Plays in Today’s Market

This week, we bring you the Stock Screen of the week from Validea. On Validea.com, you can screen for stocks using the site’s Guru Stock Screener, which scores stocks based on the fundamental stock selection criteria of legendary investors. The firm’s models are based on investing legends such as Warren Buffett, Peter Lynch, Benjamin Graham, Kenneth Fisher, Martin Zweig, David Dreman, Joel Greenblatt and others. This week’s screen is based on Validea’s Momentum strategy, which looks for companies with strong price momentum and EPS growth that is coupled with high return on equity and falling debt. This is a robust […]

The Payoff and Perils of Momentum-based Stocks

Many investors follow momentum-based methods or approaches when investing in equities, but does momentum investing actually work and what are the results? This is the basis for a recent AAII article by Charles Rotblut, CFA, vice president at AAII and editor of the AAII Journal. Relative price strength, which compares the price performance of a security to another security or the overall market or an industry, is one of the most popular ways to identify stocks exhibiting momentum. A higher relative strength, with 100 being the highest, equals more momentum and better relative performance. Since the early 1990s, academics, such […]

Consumer Stocks Still Kickin’

Continuing its look at what has and hasn’t been working in the market of late, Bespoke Investment Group says today on Seeking Alpha that the consumer staples and healthcare sectors have had the best relative strengths versus the S&P 500 over the past 12 months. That’s not surprising, Bespoke says, given those sectors’  reputations as defensive areas of the market. But Bespoke also notes that the consumer discretionary sector has outperformed the S&P over the past year, and has done particularly well in the past few weeks. “With all the troubles facing the consumer, it is encouraging to see that […]