I ran my screen on a little under 400,000 securities worldwide with the following criteria: - P/E ratio must be 40-60% below the market. - EPS growth must be between 7% and 20%. - Sales growth must be either 7% or higher, or at least 70% of EPS growth. - The company must have positive free cash flow in last fiscal year. - The EPS in each of the last 4 quarters must be higher than the corresponding quarter 1 year earlier. (Essentially, 4 consecutive quarters of year-on-year growth). - Projected annual EPS for next year must be great than this year’s.
The result was two companies: - “Advanced Energy Industries” with ticker symbol AEIS US. AEIS has no debt, generates consistent FCF, is growing top and bottom line and has a P/E of 12x. - “Total Bangun Persada” with ticker symbol TOTL IJ. TOTL IJ, the Indonesian company, is also growing with an EV/FCF of under 10x.
Beforehand, I wasn't sure what the output would be so I'm pleasantly surprised. I know nothing about the stocks but they do look interesting. Analysts have targets which are 38% and 23% for each! I’ve posted the FA screen from Bloomberg for both stocks in a blog post.
https://fatalpha.com/john-neff-screen-gives-2-interesting-stocks/
Submitted April 02, 2018 at 06:10AM by Sophocles75 https://ift.tt/2J9Ic14
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