Stock Picks – 52 Week Low Screen: 3-2-2016

Given the huge rally yesterday – and the upward short term trend in the market – it comes as no surprise that this screen has no candidates this week.

This leaves an investor with two choices, you can either be patient, or lower your standards.  I try not to sacrifice returns by relaxing my target price and discount requirements – when I have, my portfolio has suffered.

Also, with Shiller’s 10 Year CAPE Ratio approaching 25 again – I am in no hurry to put more money to work.  See my Rebalancing Portfolio Rules for more information regarding this approach.

52 Week Low stock picks are based on the following 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 % >= 3
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.