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5 Common Traits of Successful Value Screens

This week’s AAII Weekly Digest highlights these “must-read” AAII articles:

The editors of AAII’s Computerized Investing have compiled their list of the top sites for consensus analyst estimates. This time-saving service lets you cut through the “noise”—sites with mediocre information—and focus on those that offer the best information to help in your investment analysis.

John Bajkowski

Though investing gurus differ in what they look for in a stock, there are five common traits we see across the AAII value-oriented screens.

 

 

Investor Professor

How often have you seen a stock’s price fall after the company announced increased earnings, or rise after it announced that earnings fell? Expectations play a key role in determining a stock’s price. A look at how earnings estimates can impact price.

Earnings surprises and earnings estimates revisions can drive stock price momentum for as much as a year. Here we cover the basics and terminology of consensus earnings estimates.

 Our Member Question for this week is:

 

How much of an impact does the trend in consensus earnings estimates or upward and downward earnings revisions have on your decision to buy or sell a stock?

votenow

Vote to answer this week’s Special Question: Are you worried by the divergence between corporate earnings growth and the new highs in the stock market?

Last Week’s Results:

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Click here to learn about the results of last week’s AAII Special Question.

Tracking Consensus Earnings Estimates Using Stock Investor Pro

One lesson many investors quickly learn is that the market is forward-looking. Security prices are dictated by expectations, and prices fluctuate as these expectations are affirmed or are proven to be unfounded. The most frequently followed measure of market expectations combines analyst projections for a company’s earnings into a consensus earnings estimate. AAII’s Stock Investor Pro provides a variety of earnings estimate data from I/B/E/S, which is part of Thomson Reuters. In this installment ofStock Investor News, we provide a discussion of this data, as well as how it may be used in the stock screening process.

The AAII Weekly Digest is one of the many benefits of AAII membership. To learn more, consider a risk-free 30-day Trial AAII Membership to start becoming an effective manager of your own assets.

 

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