In December I wrote an article (here) detailing how to create your own stock ranking system using Excel (or Open Office) and a free data source such as Finviz.
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% |
| System | ETFs |
| Top 10 Avg: | SPY |
| 13.62% | 4.29% |
| Top 50 Avg: | VBR |
| 10.68% | 1.77% |
| Top 100 Avg: | GTAA |
| 8.14% | 2.15% |
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