Top Headlines

Wall Street analysts are missing the mark on some red-hot chip stocks

2h cnbc
According to FactSet data, Advanced Micro Devices, Western Digital, Micron and Applied Materials are among the top S&P 500 stocks trading at the largest discounts to their average price targets. Those stocks are currently sitting a respective 42, 35, 31 and 27 percent below Wall Street estimates. (718-0)
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Test Portfolio Results And Introducing A New Quality Portfolio

56m seekingalpha
The one portfolio had the highest EPS growth expectations for the next five year (portfolio A), the other portfolio had the lowest EPS growth expectations (portfolio B). (368-0)
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Alphabet Inc Stock Price Still Rests on Advertising — and That’s Scary

3h investorplace
Up front, I’ll admit I’ve been too cautious so far on Alphabet Inc (NASDAQ:GOOGL, NASDAQ:GOOG). I’ve been skeptical of the stock, only to watch the GOOGL stock price climb 32% this year and clear $1,000 for the first time. (442-0)
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General Electric Company Stock Finally Is a Reasonable, If Risky, Buy

3h investorplace
General Electric Company (NYSE:GE) has had a tough go of it, which is reflected in the GE stock price. But there are some salient questions you should consider now that it may be leveling out: (414-0)
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Fund managers seek stocks benefiting from Democratic gains in 2018 U.S. elections

1h reuters
NEW YORK (Reuters) - The surprise victory by Democrats in Tuesday’s Alabama election for a U.S. senator is prompting fund managers to prepare for more losses by the Republican party in the 2018 mid-term Congressional elections. (283-0)
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Stock Screens

Finds all companies with an activist investor filing in the last year  
Companies with Return on Invested Capital (ROIC) > 15%  
For investors desiring income over capital appreciation, companies that pay dividends regularly are a great way to generate a steady cash flow. As in any purchase, the goal is to get most value for your dollar, and with dividends, a key metric is dividend yield. The dividend yield is the annual dividend paid divided by the current share price. Higher yields are better. This stock screen finds all securities with a dividend yield greater than 4%.  
The Net Current Asset Value (NCAV) is a conservative valuation metric popularized by Benjamin Graham. To calculate it, simply subtract the total liabilities from a company’s current assets. To calculate NCAVPS (Net Current Asset Value Per Share), divide the NCAV by the number outstanding shares. This stock screener takes Ben Graham’s more conservative approach and uses ⅔ of the NCAV.  
This stock screen finds microcap companies with positive annual revenue.  
This is Benjamin Graham's Net Net Working Capital Screen  
Companies with negative enterprise value generally get this way because they have a lot of cash. (Cash is subtracted when calculating EV). There is some evidence that negative enterprise value companies outperform the market, so companies matching this screen might be undervalued.  
Finds companies where Price to Book Value < 1.0;  
The fundamental task in investing is finding mispricings in price v. quality. There are a lot of cheap companies in the market, but most of them are cheap for very good reasons. The trick is finding companies that are cheap but actually healthy. In 2000, Joseph Piotroski wrote a paper in which he described a mathematical model that turned data from financial reports into a simple 9-point score that described a company’s health. He showed that this score, combined with a valuation metric (he used Book-To-Market), could be used successfully to produce excess returns in an investing strategy. This stock screener finds all companies with a score greater than six (which we call “healthy enough”). In his work, he suggested taking a list like this and buying the cheapest of that list. Note that many people believe, incorrectly, that buying companies with the best score is the proper approach, but they end up overpaying for quality. Remember, the goal is to find mispricings in price and quality, not overpay for high quality.