Twisted Value
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.
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universe:  all stocks
US companies only
SP500 members only
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buy rules
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sort rule
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purchase smaller first
purchase larger first
sell rules
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min hold time
(trading days)
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Full Strategy Access
( 12 buy rules and 2 sell rules )
available with any paid subscription
Stocks that meet this strategy today
Use Watchlist to implement this strategy and know what to buy and when to sell.
You can refine the strategy to try and improve your returns in Backtester.
Load the strategy in Screener to see current stock selections.
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Data source: CSI (, Zacks Investment Research, Inc.
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