A value strategy selects stocks that are trading at a lower price relative to its fundamentals. The twist on this strategy plays off the efficient market theory which assumes that all facts known are factored into the current price of a stock. With that, a company that has increasing revenues without price appreciation should be increasingly undervalued. This strategy looks for 3 quarters of revenue increases while price remains relatively flat. For buy rules we added positive free cash flow, strong return on assets and equity, and a market cap floor of $500 million. We purchased the smaller market cap stocks first and sold after a 30% gain or a drop of 9% from the highest price since purchase.
Currently outperforming SPY by {{ yearExcess | percent }}
Currently underperforming SPY by {{ yearExcess | percent }}
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US companies only
SP500 members only
ETFs
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Full Strategy Access
( 12 buy rules and 2 sell rules )
available with any paid subscription