There seems to be a correlation between stocks that have a good return on equity (ROE) year after year and quality growth stocks.<\/p>\n
Here is a screen using AAII SI Pro with the following parameters:
\n – ROE for each of the last seven years > 15%
\n – Current PE < 5-year average PE\n - (PE \/ EPS growth) < 1.5\n - 5-year (diluted) EPS growth > 10%
\n – Projected long term EPS growth > 10%
\n – positive EPS growth for each of last 4 quarters<\/p>\n
Using data from October 8, the screen yielded 22 stocks. <\/p>\n
17 of the 22 stocks have an U\/D ratio > 3.0, total return > 15%, and a relative value < 110. In an equally weighted portfolio, all of these stocks together would have a total return of 20.1%, a PAR of 15.1%, an U\/D ratio of 4.7, and a relative value of 89.1.\n\nThe attached PDF file<\/a> contains a PERT chart (sorted by total return) and a trend report (sorted by PAR) with the stocks passing the screen. The PERT chart uses First Call data for projected EPS and 5-year growth.<\/p>\n","protected":false},"excerpt":{"rendered":" There seems to be a correlation between stocks that have a good return on equity (ROE) year after year and quality growth stocks. Here is a screen using AAII SI Pro with the following parameters: – ROE for each of the last seven years > 15% – Current PE < 5-year average PE - (PE […]\n<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_jetpack_memberships_contains_paid_content":false,"_links_to":"","_links_to_target":""},"categories":[46],"tags":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/stockherd.com\/moosepond\/wp-json\/wp\/v2\/posts\/15"}],"collection":[{"href":"https:\/\/stockherd.com\/moosepond\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stockherd.com\/moosepond\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stockherd.com\/moosepond\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/stockherd.com\/moosepond\/wp-json\/wp\/v2\/comments?post=15"}],"version-history":[{"count":1,"href":"https:\/\/stockherd.com\/moosepond\/wp-json\/wp\/v2\/posts\/15\/revisions"}],"predecessor-version":[{"id":403,"href":"https:\/\/stockherd.com\/moosepond\/wp-json\/wp\/v2\/posts\/15\/revisions\/403"}],"wp:attachment":[{"href":"https:\/\/stockherd.com\/moosepond\/wp-json\/wp\/v2\/media?parent=15"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stockherd.com\/moosepond\/wp-json\/wp\/v2\/categories?post=15"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stockherd.com\/moosepond\/wp-json\/wp\/v2\/tags?post=15"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}