Screen to find industry leaders

Latest Release
1

There’s a new screen available here.

It’s called ‘Industry Leaders’ and finds companies that are better than their industry peers (by at least 5%) in several aspects like PE, Price to Sales, EPS growth, etc.

An additional rule in the the last criteria screens out companies that have under-performed the SP500 in the last 4 weeks.

2

Is the screen mentioned here the same as this one?

https://www.portfolio123.com/app/screen/summary/11007?st=1&mt=1

3

@abwillingham:

rules 1,3 and 4 are logical nonsense because of the “>=”.

And the backtest (rebalancing: 4w) underperforms SPY in the last 5 years…

Matthias

4

yeah, that’s an old screen. Created back in 2008. We’ll review the rules. Thanks

5

We just reviewed the screen with a more updated factors combination (including for example net debt and operating cash flow yield), enjoy:

https://www.portfolio123.com/app/screen/summary/11007

Matthias, against the S&P500 many equal weight strategies are not performing as they used to, but in the last 2-3 years there has been a significant multiple expansions on the big names (AAPL for example went from PE13 of late 2018 to 36 now, without significant change in growth estimates, profitability and balance sheet structure). Without a change in actual EPS or sales growth it remains to be seen how much top tier tech stocks are going to continue to drive the mkt cap weight benchmarks above the rest of the market.

6

Thanks Riki,

Can you tell me the purpose of this marketcap rule?
MktCap > 1.2 *FMedian(“MktCap” ,#industry) // Market capitalization above industry median

I see what it does but why use it?

Thanks
Tony