The results of ValueWalk’s value screen for July.
Winvestor uses financial data from Thomson Reuters to identify undervalued, profitable gems that every investor is looking for. The site’s ‘Value Ranking’ (When To Buy) uses a proprietary value screen to scan stocks using more than ten different growth criteria and then arrives at a final score somewhere in the range of 0 to 100. Each stock is ranked based on its score with 100 being the most undervalued and 0 being the most overvalued.
The screen is based loosely on the Superior All-Stocks Value Strategy, as mentioned in the best-selling book by James O’Shaughnessy, What Works On Wall Street. Stocks qualifying for the screen must meet a number of value criteria including cash yield, EV/EBIT, P/B, P/FCF and P/E along with a number of other criteria that make up the secret sauce.
- Difference Between Value Stocks And Growth Stocks
- Growth vs Value Stocks – Opportunity Knocks
- Do High Quality Value Stocks Outperform Low Quality Value Stocks?
- Difference Between Value Stocks and Growth Stocks
- More Signs Point To A Shift To Value Stocks; Short Squeeze Ending – JPMorgan
Value screen for financial health
Along with value screens, Winvestor includes a screen for the best financial health. Once again, this ranking includes a number of different screening criteria, including debt, or solvency ratios and working capital ratios, including, but not limited to, the current ratio and cash conversion cycle. Each company is given a financial ‘Health Rank’ between 0 to 100 and ranked accordingly.
Winvestor’s value screens cover a universe of over 38,000 companies in 130 countries (representing over 99% of world market capitalization). However, to try and root out the best opportunities for investors, in this article the screen has been limited to US corporations with a market capitalization of $2 billion or more.
The top ten companies with the highest Value Rank are shown below. Banks and insurers are excluded. These are the results of the screen as of before market open 07/29/2015.
(click to enlarge)