Category Archives: ezpw

18 Fundamentally Strong Stocks With Positive Technicals

Each month I update a fundamental/technical screen at Scott’s Investments and track the results real-time. June’s list of 14 stocks is here and the top 10 rated stocks returned an average of  6.20% versus 5.08% for SPY. The entire list of 14 stocks last month returned an average of 5.87%.

The screen looks for the following:

  • earnings growers still reasonably priced as judged by the PEG ratio 
  • low debt 
  • a history of high return on equity and investment, and 
  • price momentum as gauged by the percentage the stock is trading to its 250 day high. 
  • The stocks are then ranked based on fundamental factors as compiled by stockscreen123.

Eighteen  stocks qualified for this month’s list. Some of the picks on the list are high value stocks, growth stocks and even penny stocks. This tells us that limited individual stock momentum exists in the market and the fundamental factors on the list can still be found among the high momentum stocks.  However, the number of qualifying stocks is substantially less than April’s 34 stocks, which is not surprising given that overall equity momentum has waned in May and June, even after rebounding in early July.

Last month I profiled two stocks, EZCORP (EZPW) which performed very well until a slight earnings miss slammed the stock last week.  I also featured Applied Industrial Technologies (AIT), which remains the number one stock on this month’s list, two spots ahead of Apple (AAPL).  After purchasing some EZPW after their earnings miss, I was stopped out today for a small loss.  Until the market is able to find a bottom in the stock, I’ll be waiting on the sidelines. Long-term, I think the stock still has strong fundamentals and potential for more appreciation.


I have no current position in AIT and the stock has an earnings conference call scheduled for August 9th.  It was down over 3% today and is now below its 50 day moving average, while still above its 200 day moving average. The short to intermediate picture for AIT looks weak, especially if it is unable to hold the $33 support level, at which point the stock would begin making lower lows, a bearish sign.  A strong earnings report could bolster the stock, as well as some clarity in the overall equity markets (assuming a debt ceiling resolution is reached before August 9th).  The stock yields 2.24% and has a price-to-earnings growth ratio (PEG) below 1, at .86.  It also has no long-term debt and trades at a price to sales ratio of .67.  It is a stock I am watching but will most likely stay on the sidelines until at least after August 9th. 


Bed Bath and Beyond (BBBY) is another stock to watch on this month’s list. It reported earnings on June 22nd and has rallied fairly well since that date.  It was on last month’s list and was up 5.55%.  It currently is in a trading range, so technically driven investors should watch support at $58 and resistance at the 52 week high around $60.50 as signals as to the stock’s next big move.  The stock is not overly cheap, but still trades at a modest forward P/E of 14, has no long-term debt, and has shown strong earnings growth in recent quarters.   

(Chart courtesy of Finviz)




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Ticker Name 7/27/11 Update Rank
AIT Applied Industrial Technologi Here 99.02
NSR Neustar, Inc Here 95.93
AAPL Apple Inc. Here 95.87
NSP Insperity Inc Here 94.78
TRLG True Religion Apparel, Inc. Here 94.46
NTES NetEase.com, Inc. (ADR) Here 93.86
BBBY Bed Bath & Beyond Inc. Here 93.63
VSEA Varian Semiconductor Here 92.99
MDF Metropolitan Health Networks, Here 91.93
WTSLA The Wet Seal, Inc. Here 89.99
DTV DIRECTV Here 86.41
CTCH Commtouch Software Ltd. Here 84.09
GOOG Google Inc. Here 82.59
TNDM Neutral Tandem Inc. Here 81.66
INTC Intel Corporation Here 77.44
PDLI PDL BioPharma Inc. Here 75.82
DECK Deckers Outdoor Corporation Here 72.67
TSM Taiwan Semiconductor Mfg. Co. Here 70.28

14 Fundamentally Sound Stocks With Strong Technicals

I update the following portfolio/screen on a monthly basis on Scott’s Investments. May’s list of 24 stocks is here and the top 10 rated stocks returned an average of  .11% versus -3.95% for SPY. The entire list of 24 stocks last month returned an average of -1.83%.

The screen looks for the following:

  • earnings growers still reasonably priced as judged by the PEG ratio 
  • low debt 
  • a history of high return on equity and investment, and 
  • price momentum as gauged by the percentage the stock is trading to its 250 day high. 
  • The stocks are then ranked based on fundamental factors as compiled by stockscreen123.

14 stocks qualified for this month’s list. This tells us that limited individual stock momentum exists in the market and the fundamental factors on the list can still be found among the high momentum stocks.  However, the number of qualifying stocks is less than last month’s list and substantially less than April’s 34 stocks, which is not surprising given that overall equity momentum has waned in May and June.


Two stocks are intriguing on this month’s list. EZCORP (EZPW), a short-term credit service and pawn shop operator, has been in a strong long-term uptrend and has repeatedly made this screen.  It has very little debt, a PEG ratio of .83, return on equity of over 20%, and has projected annual earnings growth of 15% over the next 5 years.  The weekly chart courtesy of Finviz is below. From a technical perspective, I would wait for a close above $33 before considering a long entry :

Applied Industrial Technology (AIT) momentum has slowed in recent weeks but it still remains near the top of its range as indicated by the weekly chart below. AIT is an industrial equipment wholesaler. It has a yield of  2.22% and PEG of .87.  It has no debt and has 5 year earnings growth projected at 17% annually:

Ticker Name Industry 6/27/11 Update Rank MktCap PEGLT
AIT Applied Industrial Technologi Misc. Capital Goods Here 98.5 1448.27 0.9
EZPW EZCORP, Inc. Consumer Financial Services Here 97.52 1601.08 0.83
NSR Neustar, Inc Communications Services Here 95.1 1898.46 0.82
TRLG True Religion Apparel, Inc. Apparel/Accessories Here 94.96 716.08 0.76
NSP Insperity Inc Business Services Here 94.49 773.5 0.89
BBBY Bed Bath & Beyond Inc. Retail (Specialty) Here 93.38 14098.18 0.96
FCFS First Cash Financial Services Retail (Specialty) Here 92.81 1218.26 0.91
MDF Metropolitan Health Networks, Healthcare Facilities Here 91.85 200.57 0.72
WTSLA The Wet Seal, Inc. Retail (Apparel) Here 90.49 451.84 0.92
DTV DIRECTV Broadcasting & Cable TV Here 85.94 36661.75 0.74
MA MasterCard Incorporated Consumer Financial Services Here 78.77 33086.45 0.92
CRR CARBO Ceramics Inc. Constr. – Supplies & Fixtures Here 77.12 3470.62 0.97
TNDM Neutral Tandem Inc. Communications Services Here 76.11 586.53 0.95
AVAV AeroVironment, Inc. Aerospace & Defense Here 61.97 758.79 0.68

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24 High Quality Momentum Stocks for a Market Correction

The US equity markets are in the midst of a correction, consolidation, pullback or whatever other euphemism can be used to describe the recent modest decline in equity prices.  During periods of decline it can be helpful to find long ideas among stocks which a) have low levels of debt, in case the market decline deepens, b) have a history of high returns on equity and investments c) have shown price momentum despite waning momentum in the overall markets.  I also find PEG (Price-to-Earnings Growth) a useful metric for identifying stocks which are reasonably priced compared to their anticipated earnings growth. However, the PEG ratio is using forward looking expectations, which, can at times be unreliable.

I update the following portfolio/screen on a monthly basis on Scott’s Investments. April’s list of 35 stocks is here and the top 10 rated stocks returned an average of  1.92% versus -1.24% for SPY. The entire list of 35 stocks last month returned an average of .07%, led  by Varian Semiconductor (VSEA) at 34.97%.

The screen looks for the following:

  • earnings growers still reasonably priced as judged by the PEG ratio 
  • low debt 
  • a history of high return on equity and investment, and 
  • price momentum as gauged by the percentage the stock is trading to its 250 day high. 
  • The stocks are then ranked based on fundamental factors as compiled by stockscreen123.

24 stocks qualified for this month’s list. This tells us individual stock momentum still exists in the market and the fundamental factors on the list are easy to find among the high momentum stocks.  However, the number of qualifying stocks is less than last month’s list, which is not surprising given that overall equity momentum has waned in May.


As with last month’s list, Apple (AAPL) and Intel (INTC) are two of the more popular names on the list.  Both companies short-term momentum has waned but their long-term momentum remains in tact.   INTC yields 3.7% which is outstanding when one considers the strong balance sheet, positive earnings, and low payout ratio.  It is in a cyclical business so earnings could fluctuate, however, the strong balance sheet and powerful brand combined with low payout ratio gives the dividend a significant margin of safety.


Ascena Retail Group (ASNA) is a new addition to this month’s list and is the top ranked stock on this month’s list.  Ascena Retail Group inc. operates as a specialty retailer of apparel for women and tween girls in the United States and Puerto Rico. It operates its stores under the dressbarn, maurices, and Justice brand names.  The company has shown strong earnings and sales growth this year and is projected to grow earnings at 11.59% next year (source:Finviz) and forward price-to-earnings is projected at 11.81.  The company reported quarterly earnings after the close today (May 25th), and the top ranking is based on data prior to earnings.  However, the company reaffirmed its 2011 earnings guidance of $2.28 – $2.33/share, giving it a price/earnings ratio for 2011 near 13. Net income and sales grew 8% and 9%, respectively, when compared to the same quarter last year.

The rational for this strategy is based on backtests showing stocks with low PEG ratios, debt, and high returns on equity and price momentum have produced good historical returns. The screen has tested well historically in bullish periods and, as with most long-only strategies, has suffered during significant market drawdowns. Strategies an investor could use to avoid major drawdowns would be to either abandon this type of strategy entirely when the SP 500 or another major index is below a long term moving average, or hedge positions using one of the methods I profiled here which detail short ETF strategies for hedging long equity positions.

Below are the backtest results for this strategy starting in March 31st, 2001. Returns exclude commissions and taxes and assume .25% slippage.  No position accounts for more than 25% of the portfolio (relevant in cases when the screen produces less than 4 results) and it was equally rebalanced every 4 weeks.  The backtest and the screen was conducted using stockscreen123. The cumulative returns are in excess of 550%:





Two possible tools an investor could use to conduct this screen on his/her own are stockscreen123 or Finviz. This screen was conducted using stockscreen123. For the full list of stocks and real-time results, please see the right hand side of Scott’s Investments.


Ticker Name Rank PEGLT Dbt Tot 2 EqQ ROE% 5YAvg ROI% 5YAvg
ASNA Ascena Retail Group Inc 99.8 0.96 0.02 16.28 12.84
AIT Applied Industrial Technologi 98.88 0.82 0 15.4 12.47
EZPW EZCORP, Inc. 98.31 0.79 0.03 20.36 19.63
AAPL Apple Inc. 95.71 0.66 0 31.92 28.48
NSR Neustar, Inc 95.2 0.83 0.01 17.96 16.84
LECO Lincoln Electric Holdings, In 95.06 0.97 0.08 15.69 12.28
TRLG True Religion Apparel, Inc. 95 0.77 0 28.88 27.84
NSP Insperity Inc 94.43 0.91 0 16.52 13.25
FCFS First Cash Financial Services 94.1 0.9 0.01 18.99 15.95
DV DeVry Inc. 93.55 0.97 0 18.43 16.49
BBBY Bed Bath & Beyond Inc. 92.07 0.99 0 19.87 18.22
INTC Intel Corporation 91.28 0.9 0.05 16.28 14.96
WSTG Wayside Technology Group, Inc 89.93 0.55 0.01 14.97 14.9
JOSB Jos. A. Bank Clothiers, Inc. 87.33 0.95 0 20.55 17.5
DTV DIRECTV 85.3 0.78 0 30.78 12.76
PLT Plantronics, Inc. 82.92 0.99 0 13.81 13.07
GIL Gildan Activewear Inc. (USA) 80.87 0.76 0 18.33 17.19
MA MasterCard Incorporated 79.63 0.89 0 29.76 22.24
TNDM Neutral Tandem Inc. 77.15 0.95 0 15.65 13.92
CRR CARBO Ceramics Inc. 77.04 0.96 0 14.35 13.55
QCOR Questcor Pharmaceuticals, Inc 73.18 0.91 0 43.34 42.57
DECK Deckers Outdoor Corporation 71.02 0.82 0 24.8 24.7
TSM Taiwan Semiconductor Mfg. Co. 65.51 0.89 0.06 20.19 22.56
CKSW ClickSoftware Technologies Lt 40.36 0.43 0 26.52 22.28


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High Quality Stocks With Price Momentum

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I update the following portfolio/screen on a monthly basis on Scott’s Investments. March’s list of 35 stocks is here and the top 10 rated stocks returned an average of  2.23% for the top 10 stocks on the list versus -1.57% for SPY. The entire list of 35 stocks last month returned an average of 5.4%, led  by Select Comfort (SCSS) at 38.19%.

The screen looks for the following:

  • earnings growers still reasonably priced as judged by the PEG ratio 
  • low debt 
  • a history of high return on equity and investment, and 
  • price momentum as gauged by the percentage the stock is trading to its 250 day high. 
  • The stocks are then ranked based on fundamental factors as compiled by stockscreen123.

35 stocks qualified for this month’s list.  Just as in last month, this tells us individual stock momentum still exists in the market and the fundamental factors on the list are easy to find among the high momentum stocks.


Some popular names made this month’s list, inclduing Apple (AAPL) and Intel (INTC).   AAPL has struggled to breach its high set in February, even after another blowout quarter.  It is priced at a reasonable forward projected Price-to-Earnings (P/E) of 12.48 and Price-to-Earnings Growth (PEG) of .84.  However, keep in mind these are forward projections and are predicated on Apple continuing to show strong earnings growth. It also has a return on equity and return on investment in excess of 30% and no long-term debt. 


Intel is slowly transforming itself into a favorite among dividend investors. It currently yields 3.3% and has little debt.  It also has a return on equity and return on investment in excess of 20%.   Finally, it has a forward P/E of 9.1 and a PEG of .91.   The projected PEG and P/E of Intel are based on much lower earnings growth than a high growth stock like AAPL, a company which has shown significant and consistent earnings growth in recent years.  However, for investors seeking a combination of yield, price momentum, a clean balance sheet, and reasonable valuation, Intel is worth consideration.

The rational for this screen is based on backtests showing stocks with low PEG ratios, debt, and high returns on equity and price momentum have produced good historical returns. The screen has tested well historically in bullish periods and has suffered during significant market drawdowns. Strategies an investor could use to avoid major drawdowns would be to either abandon this type of strategy entirely when the SP 500 or another major index is below a long term moving average, or hedge positions using one of the methods I profiled here.


Below are the backtest results for this strategy starting in March 31st, 2001. Returns exclude commissions and taxes and assume .25% slippage.  No position accounts for more than 25% of the portfolio (relevant in cases when the screen produces less than 4 results) and it was equally rebalanced every 4 weeks.  The test was conducted using stockscreen123:




Two possible tools an investor could use to conduct this screen on his/her own are stockscreen123 or Finviz. This screen was conducted using stockscreen123. For the full list of stocks and real-time results, please see the right hand side of Scott’s Investments.


Ticker Name Trend QVG score Mkt Cap PEG LT Dbt Tot 2Eq Q ROE% 5Y Avg ROI% 5Y Avg
AIT Applied Industrial Technologi Here 99.25 1455.32 0.87 0 15.4 12.47
EZPW EZCORP, Inc. Here 98.64 1497.68 0.75 0.03 20.36 19.63
AAPL Apple Inc. Here 96.03 324307.69 0.71 0 31.92 28.48
SMCI Super Micro Computer, Inc. Here 95.36 641.47 0.96 0.08 16.68 15.12
VSEA Varian Semiconductor Here 95.16 3408.49 0.74 0 15.09 13.83
FCFS First Cash Financial Services Here 94.25 1195.43 0.89 0.01 18.99 15.95
INTC Intel Corporation Here 93.27 115565.5 0.84 0.05 16.28 14.96
DTV DIRECTV Here 91.94 37204.02 0.6 0 30.78 12.76
NSP Insperity Inc Here 91.79 786.16 0.65 0 16.52 13.25
LECO Lincoln Electric Holdings, In Here 90.44 3207.83 0.97 0.09 15.69 12.28
BIG Big Lots, Inc. Here 90.11 3120.18 0.97 0 18.49 15.7
JOSB Jos. A. Bank Clothiers, Inc. Here 89.91 1429.17 0.91 0 20.55 17.5
SHOO Steven Madden, Ltd. Here 87.11 1428.22 0.97 0 20.13 19.63
MA MasterCard Incorporated Here 85.07 33792.75 0.81 0 29.76 22.24
NTES NetEase.com, Inc. (ADR) Here 83.97 6666.89 0.79 0 32.24 30.68
AIXG Aixtron AG (ADR) Here 83.34 4269.27 0.25 0 20.23 20.05
TRCR Transcend Services, Inc. Here 80.73 242.84 0.94 0 23.39 21.83
FOSL Fossil, Inc. Here 80.51 6156.55 0.95 0.01 18.69 18
ANF Abercrombie & Fitch Co. Here 79.8 6071.98 0.78 0.04 17.92 14.06
DECK Deckers Outdoor Corporation Here 79.57 3717.31 0.74 0 24.8 24.7
NVEC NVE Corporation Here 79.01 273.87 0.83 0 23.98 23.98
TSM Taiwan Semiconductor Mfg. Co. Here 78.72 63625.59 0.78 0.06 20.19 22.56
BIDU Baidu.com, Inc. (ADR) Here 74.29 51687 0.7 0.01 43.86 43.68
SEIC SEI Investments Company Here 72.02 4270.77 0.98 0.09 27.44 30.91
GNTX Gentex Corporation Here 70.94 4335.21 0.96 0 13 12.6
GSOL Global Sources Ltd. (Bermuda) Here 67.98 542.09 0.52 0 16.57 17.17
VLTR Volterra Semiconductor Corpor Here 67.6 624.49 0.8 0 15.44 15.25
WTSLA The Wet Seal, Inc. Here 67.38 450.37 0.73 0 15.16 13.37
GA Giant Interactive Group Inc ( Here 62.55 1994.99 0.99 0 19.8 19.75
BWLD Buffalo Wild Wings Here 59.09 1101.29 0.96 0.07 15.86 13.7
NSR Neustar, Inc Here 57.67 1948.05 0.73 0.02 17.96 16.84
APEI American Public Education, In Here 55.62 805.6 0.76 0 33.59 31.22
QCOR Questcor Pharmaceuticals, Inc Here 54.61 1200.42 0.67 0 43.34 42.57
SAPE Sapient Corporation Here 43.53 1712.68 0.83 0 13.64 12.77
CKSW ClickSoftware Technologies Lt Here 42.61 297.15 0.33 0 26.52 22.28

36 Momentum Stocks to Consider Now

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I update the following portfolio/screen on a monthly basis on Scott’s Investments. February’s list of 40 stocks is here and the top 10 rated stocks returned an average of  3.47% for the top 10 stocks on the list versus -1.14% for SPY. The entire list of 40 stocks last month returned an average of 2.50%, led  by First Cash Financial Services (FCFS) at 20.89%.

The screen looks for the following:

  • earnings growers still reasonably priced as judged by the PEG ratio 
  • low debt 
  • a history of high return on equity and investment, and 
  • price momentum as gauged by the percentage the stock is trading to its 250 day high. 
  • The stocks are then ranked based on fundamental factors as compiled by stockscreen123.

36 stocks qualified for this month’s list.  Just as in last month, this tells us individual stock momentum still exists in the market and the fundamental factors on the list are easy to find among the high momentum stocks.

This strategy of screening stocks has produced solid returns since this summer. For example, August’s list returned 16.17% versus 7.87% for SPY and July’s top 5 stocks returned over 19%.

The rational for this screen is based on backtests showing stocks with low PEG ratios, debt, and high returns on equity and price momentum have produced good historical returns. The screen has tested well historically in bullish periods and has suffered during significant market drawdowns. Strategies an investor could use to avoid major drawdowns would be to either abandon this type of strategy entirely when the SP 500 or another major index is below a long term moving average, or hedge positions using one of the methods I profiled here.



Two possible tools an investor could use to conduct this screen on his/her own are stockscreen123 or Finviz. This screen was conducted using stockscreen123. For the full list of stocks and real-time results, please see the right hand side of Scott’s Investments.


Ticker Name Trend Rank PEG LT DbtTot 2 EqQ
ASNA Ascena Retail Group Inc Here 99.8 0.98 0.02
AIT Applied Industrial Technologi Here 99.46 0.89 0
USPH U.S. Physical Therapy, Inc. Here 99.24 0.97 0.06
LRCX Lam Research Corporation Here 99.06 0.94 0.01
VSEA Varian Semiconductor Here 94.11 0.78 0
NSP Insperity Inc Here 91.92 0.68 0
DTV DIRECTV Here 91.38 0.59 0
SHOO Steven Madden, Ltd. Here 90.99 0.83 0
LECO Lincoln Electric Holdings, In Here 90.51 0.99 0.09
AAPL Apple Inc. Here 90.49 0.78 0
EZPW EZCORP, Inc. Here 89.25 0.74 0.04
FCFS First Cash Financial Services Here 88.94 0.79 0.01
CTCM CTC Media, Inc. Here 88.5 0.21 0
AVAV AeroVironment, Inc. Here 87.6 0.84 0
MA MasterCard Incorporated Here 87.58 0.75 0
NTES NetEase.com, Inc. (ADR) Here 86.61 0.66 0
ANF Abercrombie & Fitch Co. Here 84.6 0.73 0.04
DECK Deckers Outdoor Corporation Here 84.18 0.64 0
AIXG Aixtron AG (ADR) Here 83.06 0.26 0
FOSL Fossil, Inc. Here 83.04 0.84 0.01
PPDI Pharmaceutical Product Develo Here 82.01 0.89 0
SAM The Boston Beer Company, Inc. Here 80.22 0.92 0
IPGP IPG Photonics Corporation Here 80.04 0.96 0.08
NVEC NVE Corporation Here 79.16 0.8 0
BIDU Baidu.com, Inc. (ADR) Here 76.44 0.61 0
CRR CARBO Ceramics Inc. Here 75.52 0.98 0
GOOG Google Inc. Here 74.13 0.77 0.07
ALGN Align Technology, Inc. Here 73.09 0.81 0
SEIC SEI Investments Company Here 71.3 0.98 0.09
GSOL Global Sources Ltd. (Bermuda) Here 70.17 0.47 0
GA Giant Interactive Group Inc ( Here 66.77 0.94 0
BWLD Buffalo Wild Wings Here 63.12 0.85 0.07
SCSS Select Comfort Corp. Here 60.98 0.92 0
MASI Masimo Corporation Here 58.83 0.98 0
NSR Neustar, Inc Here 56.34 1 0.02
ESV ENSCO PLC Here 47.22 0.79 0.04



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19 Stocks to Bring In the New Year

I update the following portfolio/screen on a monthly basis on Scott’s Investments. October’s list of 22 stocks is here and returned an average of 15.45% for the top 5 stocks on the list versus .59% for SPY. The entire list of 22 stocks last month returned an average of 7.82%, led by Questcor Pharmaceuticals, Inc which returned over 39% for the 1 month period and Deckers Outdoor which returned over 36%.

Last month’s portfolio of 23 stocks returned an average of 6.91% and 7.01% for the top 5 on the list. SPY returned 5.99% during the same period.  The leader for last month was InterDigital (IDCC) returning 26.58%.

The screen looks for the following:

  • earnings growers still reasonably priced as judged by the PEG ratio 
  • low debt 
  • a history of high return on equity and investment, and 
  • price momentum as gauged by the percentage the stock is trading to its 250 day high. 

This strategy of screening stocks has produced stellar returns since this summer. For example, August’s list returned a whopping 16.17% versus 7.87% for SPY and July’s top 5 stocks returned over 19%.

When the screen results in more than 5-10 stocks I have also started tracking returns of the top 5 stocks at the beginning of each list. The stocks are ranked based on fundamental factors.

The rational for this screen is based on backtests showing stocks with low PEG ratios, debt, and high returns on equity and price momentum have produced good historical returns. The screen has tested well historically in bullish periods and has suffered during significant market drawdowns. Strategies an investor could use to avoid major drawdowns would be to either a) abandon this type of strategy entirely when the SP 500 or another major index is below a long term moving average, or b) hedge positions with a position in SH or write a short option strategy on an equity index or ETF like SPY.

Below are 1, 3, and 5 year test results if an investor were to invest in the top 5 stocks in this screen every 4 weeks. Test results exclude commissions and dividends but include .5% slippage:

This month’s list contains 19 stocks versus 23 last month.  The top stock on the list is once again Metropolitan Health Networks, MDF, which has made multiple appearances on this stock list.  Apple, AAPL, remains on this month’s list. Two new additions of note for this month are two large cap technology stocks, Qualcomm (QCOM) and Applied Materials (AMAT). 

Two possible tools an investor could use to conduct this screen on his/her own are stockscreen123 or Finviz. This screen was conducted using stockscreen123. For the full list of stocks and results, please see the right hand side of Scott’s Investments.

No positions in stocks mentioned


Ticker Name Trend Rank MktCap Industry
MDF Metropolitan Health Networks, Here 99.27 184.45 Healthcare Facilities
AIT Applied Industrial Technologi Here 99.23 1387.45 Misc. Capital Goods
AMAT Applied Materials, Inc. Here 99.03 18587.59 Semiconductors
LRCX Lam Research Corporation Here 98.49 6408.42 Semiconductors
EZPW EZCORP, Inc. Here 97.5 1399.02 Consumer Financial Services
VSEA Varian Semiconductor Here 95.97 2760.3 Semiconductors
FCFS First Cash Financial Services Here 94.62 958.53 Retail (Specialty)
CNU Continucare Corporation Here 93.29 289.51 Healthcare Facilities
AAPL Apple Inc. Here 89.84 296840.59 Computer Hardware
IDCC InterDigital, Inc. Here 87.41 1897.28 Communications Equipment
TSRA Tessera Technologies, Inc. Here 85.65 1117.22 Semiconductors
TSM Taiwan Semiconductor Mfg. Co. Here 85.11 63849 Semiconductors
SNHY Sun Hydraulics Corporation Here 83.86 638.53 Misc. Fabricated Products
QCOR Questcor Pharmaceuticals, Inc Here 83.42 949.33 Biotechnology & Drugs
DECK Deckers Outdoor Corporation Here 79.51 3225.78 Footwear
NVEC NVE Corporation Here 78.92 272.21 Semiconductors
CTCM CTC Media, Inc. Here 77.07 3580.94 Broadcasting & Cable TV
QCOM QUALCOMM, Inc. Here 70.44 79979.74 Communications Equipment
CKSW ClickSoftware Technologies Lt Here 60.57 241.05 Software & Programming

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23 Top Stock Picks

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I conduct the following screen on a monthly basis. Last month’s list of 22 stocks is here and returned an average of 15.45% for the top 5 stocks on the list versus .59% for SPY.  The entire list of 22 stocks last month returned an average of 7.82%, led by Questcor Pharmaceuticals, Inc which returned over 39%for the 1 month period and Deckers Outdoor which returned over 36%.
The screen looks for the following:

  • earnings growers still reasonably priced as judged by the PEG ratio
  • low debt
  • a history of high return on equity and investment, and
  • price momentum as gauged by the percentage the stock is trading to its 250 day high.
This strategy of screening stocks has produced stellar returns since this summer. For example, August’s list returned a whopping 16.17% versus 7.87% for SPY and July’s top 5 stocks returned over 19%.  

When the screen results in more than 5-10 stocks I have also started tracking returns of the top  5 stocks at the beginning of each list.  The stocks are ranked based on fundamental factors.

The rational for this screen is based on backtests showing stocks with low PEG ratios, debt, and high returns on equity and price momentum have produced excellent returns.  The screen has tested well historically in bullish periods so strategies an investor could use to avoid drawdowns would be to either a) abandon this type of strategy entirely when the SP 500 or another major index is below a long term moving average, or b) hedge positions with a position in SH or write a short option strategy on an equity index or ETF like SPY.

Below are 1, 3, and 5 year test results if an investor were to invest in the top 5 stocks in this screen every 4 weeks and moving to cash when the SP 500 was below its 200 day moving average.  Test results exclude commissions but include .5% slippage:



This month’s list contains 23 stocks versus 22 last month.  The top stock on the list is Metropolitan Health Networks, MDF, which has made multiple appearances on this stock list.  Apple, AAPL, remains on this month’s list while DECK, one of last month’s leaders, has been removed.

Two possible tools an investor could use to conduct this screen on his/her own are stockscreen123 or Finviz. This screen was conducted using stockscreen123. For the full list of stocks and results, please see the right hand side of Scott’s Investments.

No positions in stocks mentioned


Ticker Name Trend Rank MktCap Industry
MDF Metropolitan Health Networks, Here 99.13 172.31 Healthcare Facilities
AIT Applied Industrial Technologi Here 99.07 1301.74 Misc. Capital Goods
LRCX Lam Research Corporation Here 98.51 5732.04 Semiconductors
THO Thor Industries, Inc. Here 98.09 1927.35 Mobile Homes & RVs
DDMX Dynamex, Inc. Here 97.91 231.16 Air Courier
EZPW EZCORP, Inc. Here 97.24 1289.95 Consumer Financial Services
JOSB Jos. A. Bank Clothiers, Inc. Here 96.46 1216.11 Retail (Apparel)
FCFS First Cash Financial Services Here 95.11 880.34 Retail (Specialty)
NTES NetEase.com, Inc. (ADR) Here 93.07 4993.88 Casinos & Gaming
CNU Continucare Corporation Here 92.37 288.3 Healthcare Facilities
IDCC InterDigital, Inc. Here 89.69 1512.15 Communications Equipment
ARGN Amerigon Incorporated Here 88.91 240.95 Auto & Truck Manufacturers
AAPL Apple Inc. Here 88.46 288951.81 Computer Hardware
TSM Taiwan Semiconductor Mfg. Co. Here 85.83 56988.05 Semiconductors
SNHY Sun Hydraulics Corporation Here 85.44 538.49 Misc. Fabricated Products
QCOR Questcor Pharmaceuticals, Inc Here 83.15 915.76 Biotechnology & Drugs
DECK Deckers Outdoor Corporation Here 82.73 2797.94 Footwear
NVEC NVE Corporation Here 81.74 240.39 Semiconductors
GSOL Global Sources Ltd. (Bermuda) Here 81.16 302.8 Printing & Publishing
AZO AutoZone, Inc. Here 80.35 11579.5 Retail (Specialty)
CTCM CTC Media, Inc. Here 76.28 3569.98 Broadcasting & Cable TV
CPRT Copart, Inc. Here 62.11 3027.95 Retail (Specialty)
PCLN priceline.com Incorporated Here 47.69 20172.09 Business Services

22 Top Stocks Based on PEG and Price Momentum

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I conduct the following screen on a monthly basis. Early out-of-sample results have been mixed, performing well during bullish environments and poorly during bearish/choppy markets.  Last month’s list is here and returned an average of 4.91% for the 10 stocks on the list versus 3.34% for SPY.  The top 5 stocks on the list returned 7.21%.
August’s list here, July’s list is here, June’s list is here, May’s list is here, Aprils’ list is here, March’s list is here, February’s list is here and January’s here. The screen looks for the following:

  • earnings growers still reasonably priced as judged by the PEG ratio
  • low debt
  • a history of high return on equity and investment, and
  • price momentum as gauged by the percentage the stock is trading to its 250 day high.
August’s list returned a whopping 16.17% versus 7.87% for SPY.  It is worth noting that list had very few stocks that qualified for the list, three in total. 

When the screen results in more than 5-10 stocks I have also started tracking returns of the top  5 or 10 stocks at the beginning of each list (when more than 5 stocks qualify).  The top stocks are selected based on fundamental factors.   For the full list of stocks and results, please see the right hand side of Scott’s Investments.

The screen has tested well historically in bullish periods so strategies an investor could use to avoid drawdowns would be to either a) abandon this type of strategy entirely when the S&P 500 or another major index is below a long term moving average, or b) hedge positions with a position in SH or write a short option strategy on an equity index or ETF like SPY.
This month’s list contains 22 stocks versus 12 last month.  Two possible tools an investor could use to conduct this screen on his/her own are stockscreen123 or Finviz. This screen was conducted using stockscreen123.

No positions in stocks mentioned


Ticker Name Trend Rank MktCap Industry
LRCX Lam Research Corporation Here 99.52 5391.68 Semiconductors
MDF Metropolitan Health Networks, Here 98.97 161.77 Healthcare Facilities
DDMX Dynamex, Inc. Here 98.59 205.6 Air Courier
EZPW EZCORP, Inc. Here 98.31 1063.6 Consumer Financial Services
DECK Deckers Outdoor Corporation Here 98.29 2012.1 Footwear
CNU Continucare Corporation Here 96.9 274.91 Healthcare Facilities
JOSB Jos. A. Bank Clothiers, Inc. Here 96.19 1232.07 Retail (Apparel)
TXN Texas Instruments Incorporate Here 96.07 34254.3 Semiconductors
FCFS First Cash Financial Services Here 93.89 886.4 Retail (Specialty)
IDCC InterDigital, Inc. Here 93.83 1316.75 Communications Equipment
USNA USANA Health Sciences, Inc. Here 90.46 622.77 Personal & Household Prods.
MSM MSC Industrial Direct Co., In Here 88.91 3665.49 Misc. Capital Goods
AAPL Apple Inc. Here 88.08 281633.31 Computer Hardware
AZO AutoZone, Inc. Here 82.16 10587.51 Retail (Specialty)
TSM Taiwan Semiconductor Mfg. Co. Here 79.86 54911.73 Semiconductors
SNHY Sun Hydraulics Corporation Here 77.9 525.07 Misc. Fabricated Products
CTCM CTC Media, Inc. Here 72.52 3653.59 Broadcasting & Cable TV
NTES NetEase.com, Inc. (ADR) Here 68.61 5099 Casinos & Gaming
DRQ Dril-Quip, Inc. Here 68.39 2678.87 Oil Well Services & Equipment
CPRT Copart, Inc. Here 63.99 2856.68 Retail (Specialty)
QCOR Questcor Pharmaceuticals, Inc Here 55.42 652.16 Biotechnology & Drugs
FSLR First Solar, Inc. Here 44.35 12452.53 Semiconductors

Top Stocks Based on Momentum/PEG

I have begun conducting the following screen on a monthly basis. Early out-of-sample results have been positive, especially in a bullish environment like the current one. March’s list is here, February’s list is here and January’s here. The screen looks for the following:

  • earnings growers still reasonably priced as judged by the PEG ratio
  • low debt
  • a history of high return on equity and investment, and
  • price momentum as gauged by the percentage the stock is trading to its 250 day high.
January’s list returned 1.39% vs .57% for SPY. February’s list returned a solid 11.78% vs. 6.77% for SPY. March returned 7.91% vs. 4.23% for SPY. I have also started tracking returns of the top 10 stocks at the beginning of each list, the top 10 are selected based on fundamental factors.  The top 10 on March’s list returned an average of 10.77%. The top return stock on March’s list was Joseph A Banks (JOSB) , which returned over 24% in one month. For the full list of stocks and results, please see the right hand side of Scott’s Investments.


With the US equity markets near an 18 month high, this list will be more expansive than in other, less bullish periods since it looks for stocks near 250 day highs. It has tested well historically in bullish periods. Strategies an investor could use to avoid drawdowns would be to either a) abandon this type of strategy entirely when the S&P 500 or another major index is below a long term moving average, or b) hedge positions with a short option strategy on an equity index or ETF like SPY.


Two possible tools an investor could use to conduct this screen on his/her own are stockscreen123 or Finviz. This screen was conducted using stockscreen123.
No positions in stocks mentioned

Ticker Name Trend Analysis Last
WDC Western Digital Corp. Here 44.71
EZPW EZCORP, Inc. Here 23.31
MDF Metropolitan Health Networks, Here 3.12
CBEH China Integrated Energy, Inc. Here 11.53
PTI Patni Computer Systems Limite Here 25.76
USNA USANA Health Sciences, Inc. Here 34.72
DECK Deckers Outdoor Corporation Here 157.21
HSTM HealthStream, Inc. Here 4.85
MD Mednax Inc. Here 57.02
MANT ManTech International Corpora Here 50.36
AFAM Almost Family, Inc. Here 39.4
ARO Aeropostale, Inc. Here 31.88
AAON AAON, Inc. Here 23.95
TRLG True Religion Apparel, Inc. Here 33.11
AEO American Eagle Outfitters Here 18.14
FCFS First Cash Financial Services Here 23.49
LHCG LHC Group, Inc. Here 36.51
IDCC InterDigital, Inc. Here 28.94
JOSB Jos. A. Bank Clothiers, Inc. Here 64.13
USPH U.S. Physical Therapy, Inc. Here 18.03
CHSI Catalyst Health Solutions, In Here 45
DDMX Dynamex, Inc. Here 17.95
CTCM CTC Media, Inc. Here 19.53
MA MasterCard Incorporated Here 267.22
CPLA Capella Education Company Here 93.51
ESV ENSCO PLC Here 51.95
STRA Strayer Education, Inc. Here 253.03
BWLD Buffalo Wild Wings Here 51.33
QCOR Questcor Pharmaceuticals, Inc Here 8.21

Top Stocks Based on PEG/Momentum

I have begun conducting the following screen on a monthly basis.  Early results have been positive, especially in a bullish environment like the current one.  February’s list is here and January’s here.  The screen looks for the following:

  1. earnings growers still reasonably priced as judged by the PEG ratio
  2. low debt
  3. a history of high return on equity and investment, and
  4. price momentum as gauged by the percentage the stock is trading to its 250 day high.

January’s list returned 1.39% vs .57% for SPY.  February’s list returned a solid 11.78% vs. 6.77% for SPY.  The top stock for February’s list was Techwell (TWLL), which returned over 49% in one month.  For the full list of stocks and results, please see the right hand side of Scott’s Investments.

With the US equity markets near an 18 month high, this list will be more expansive than in other, less bullish periods since it looks for stocks near 250 day highs. It has tested well historically in bullish periods.  Strategies an investor could use to avoid drawdowns would be to either a) abandon this type of strategy entirely when the S&P 500 or another major index is below a long term moving average, or b) hedge positions with a short option strategy on an equity index or ETF like SPY.

Two possible tools an investor could use to conduct this screen on his/her own are stockscreen123 or Finviz.  This screen was conducted using stockscreen123.

No positions in stocks mentioned

Ticker Name Trend Analysis
EZPW EZCORP, Inc. Here
MDF Metropolitan Health Networks, Here
FCFS First Cash Financial Services Here
TSCO Tractor Supply Company Here
FOSL Fossil, Inc. Here
JOSB Jos. A. Bank Clothiers, Inc. Here
DECK Deckers Outdoor Corporation Here
PTI Patni Computer Systems Limite Here
MANT ManTech International Corpora Here
ARO Aeropostale, Inc. Here
MD Mednax Inc. Here
AFAM Almost Family, Inc. Here
TRLG True Religion Apparel, Inc. Here
AAON AAON, Inc. Here
LHCG LHC Group, Inc. Here
VLCM Volcom, Inc. Here
OMPI Obagi Medical Products, Inc. Here
AEO American Eagle Outfitters Here
CHSI Catalyst Health Solutions, In Here
CTRN Citi Trends, Inc. Here
URBN Urban Outfitters, Inc. Here
MA MasterCard Incorporated Here
CPLA Capella Education Company Here
STRA Strayer Education, Inc. Here
BWLD Buffalo Wild Wings Here
QCOR Questcor Pharmaceuticals, Inc Here