Stock Picks – 52 Week Low Screen: 10-21-2015

Only two candidates this week:

I am not a big fan of either company – if the Gap gets cheaper, might be a real estate play.

Based on the following screen:

• 52 Week Low Screen:

1. Morningstar analysis available.
2. Less than 5% above its 52 week low.
3. Greater than or equal to Narrow moat.
4. Free cash flow/enterprise value greater than 5% (should be above what the 10 Year Treasury Bond is yielding).
5. Financial Health Grade >= B.
6. Forward P/E <= 20.
7. Stock Industry not = Asset Management
8. Dividend Yield % >= 2.5
9. For candidates that have passed all the filters, review the individual stocks Return on Invested Capital (ROIC) for the previous 10 years to select the best long term candidates.