Keep Screening for the Long Shots

Earlier this week when I wrote about value and momentum strategies, I referenced the idea of buying stocks ranked either No. 1 or No. 2 by Value Line for year-ahead performance, and which were priced in the single-digit range.

This simple screen has returned up some powerful ideas over the years. The research service only covers around 1,700 of the more than 11,000 listed stocks, so the list contains fairly well-known stocks. The system weighs earnings and price momentum fairly highly in its selection, so these tend to be either emerging growth stocks or turnarounds that are starting to work. Although it is volatile, the screen has blown the market away for more than two decades now. It is a great approach for aggressive investors who can stomach high volatility levels in exchange for high long-term returns....631 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.