I used one fundamental factor, Price to Earnings Growth ratio (PEG), and two technical factors, 1 and 3 month returns, to rank all available stocks which trade at least 50k shares per day and a price over $1. For fun, I decided to track the returns of the top stocks on this list on the right hand side of the blog in the spreadsheet titled “Example of a Stock Ranking System”.
Below are the returns of the top 10 stocks in the list. The top 10 returned an average of 13.62%, the top 50 10.68%, and the top 100 8.14%. Not too shabby! I have also include returns for some popular ETFs over the same period. All returns excludes dividends, commissions, and taxes and are strictly hypothetical.
Question for readers: Any requests on a system to try and track for the next month or so? Keep it relatively simple, using data available on the Finviz screener page.
|Symbol||Company||12/20/10 Open||1/27/11 Close||Return|
|RAS||RAIT Financial Trust||Stock Picks||2.22||2.73||22.97%|
|THC||Tenet Healthcare Corp.||Stock Picks||6.66||6.74||1.20%|
|CBPO||China Biologic Products, Inc.||Stock Picks||15.91||16.05||0.88%|
|CHBT||China-Biotics, Inc.||Stock Picks||14.18||14.47||2.05%|
|ASYS||Amtech Systems Inc.||Stock Picks||24.69||26.75||8.34%|
|NCT||Newcastle Investment Corp.||Stock Picks||5.81||7.05||21.34%|
|KLIC||Kulicke & Soffa Industries Inc.||Stock Picks||7.45||9.98||33.96%|
|ARIA||Ariad Pharmaceuticals Inc.||Stock Picks||4.62||6.63||43.51%|
|NOR||Noranda Aluminum Holding Corp.||Stock Picks||12.7||14.45||13.78%|
|ICGE||Internet Capital Group Inc.||Stock Picks||13.83||12.2||-11.79%|
|Top 10 Avg:||SPY|
|Top 50 Avg:||VBR|
|Top 100 Avg:||GTAA|
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