The Omni Intelligencer

Sell your house faster for more. auction-style-property-sale
  Tuesday, June 28, 2016  Home > Money > Finance > Investment > Can you still find good values in this market?
Follow us on Twitter
Every Dollar Helps
Donate using PayPal
Amount:

Can you still find good values in this market?

| More

A lot of investors tell me they're frustrated by all the recent stock market strength. Why? Because they got caught sitting on the sidelines and now feel as though it's too late to buy in.

While I'll be the first person to admit that many companies are no longer the screaming buys they used to be, I do want you to know that there are still plenty of reasonably-priced stocks out there right now. The trick is knowing how to find them.

As I've pointed out in this column many times before, stock screens are one of the quickest and easiest ways to start the process of searching for new buys.

In a minute I'll show you the results of my most recent screen.

First, However, Let's Recap How Stock Screens Work ...

Stock screeners are filtering programs that draw on databases of stored information, allowing you to search for investments based on pre-determined criteria. They're both extremely useful and fun to play with.

In the old days, it took a proprietary system and either lots of tedious labor or a very powerful computer to perform a single stock screen.

Now, things are a lot different. Sure, investment professionals still have access to programs and software that give them more information than most. But the Internet has brought screening to masses, and many of the online tools are as powerful as some of the pro-level stuff.

In fact, plenty of websites now offer advanced tools and rich data sources absolutely free of charge. For example, Yahoo! Finance has an interactive stock screener that encompasses more than 150 different criteria. I think it's very impressive, and worth checking out.

Other sites have quality screeners, too. Zacks Investment Research offers up a custom screener as does Morningstar, which includes the company's analyst rankings as one of the possible criteria. Morningstar also offers a premium screener, which is available by subscription only.

You should also check to see if your broker offers its own proprietary screening tools. Fidelity provides one to its customers, for example.

Okay, But What Criteria Should You Use?
Here's the Most Recent Search I Did ...

In the screen below, I limited my search to shares with dividend yields of 3.5% or higher — a bar that is much higher than the current market average.

Then to ensure that the dividends were reasonably safe I also insisted on a payout ratio of 65% or less. That means, in the worst case, one third of the firm's earnings are still being retained for basic business needs.

Next, I weeded out any stock that was trading at a price-to-earnings ratio in excess of 16. Moreover, I also screened for five-year earnings growth of at least 5%. Together this means the companies below are both reasonably priced and showing healthy business gains.

And to make sure that none of the resulting names were loaded down with debt, I added one final criteria — a long-term debt-to-equity ratio of 50% or less.

As you can see, many of the names are lesser-known regional banks, which makes sense given the combination of characteristics I searched for. However, there are also plenty of non-financials — including Strayer Education, food distributor Sysco, and tobacco company Lorillard.

Now, I'm not saying you should rush out and buy any of these companies — a stock screen is just the first step in the research process.

But I CAN tell you that I recently recommended one of the companies above for my own dad's retirement account. And I'm sure other names in this list are good buys right now, too.

So if you feel like it's too late to put some stocks into your portfolio, I'd humbly suggest you just look a little harder ... and stock screens are a great way to do that.

Source: moneyandmarkets.com


Sell your house faster for more. auction-style-property-sale
| More
 

Current Headlines - Finance

  • Earnings drop at South Africa's Omnia on weak mining sector 28 Jun 2016 | 3:10 am

    South African diversified chemical services provider Omnia reported a fall in full-year earnings on Tuesday, dragged down by the ailing mining sector which has been hobbled by falling prices. Omnia said headline earnings per share, the main profit measure in South Africa, slumped 29 percent to 10.33 rand in the year to March compared with 14.56 in the previous year. "Overall, market conditions remain challenging and some of the key factors affecting market conditions are as follows: softer demand in mining commodity and mineral markets throughout Africa and reduced mining activity in metals and minerals," Omnia said in a statement.

  • South Africa's rand recovers after two days of Brexit volatility 28 Jun 2016 | 2:22 am

    South African Rand coins are seen in this photo illustrationSouth Africa's rand recovered its footing against the dollar on Tuesday after two days of volatile trading spurred by Britain's decision to leave the European Union. The stock market also got off to a firm start at 0700 GMT, with the Top-40 index adding 1.3 percent, while the All-share index was up 1 percent.


  • World stocks, sterling try to shake off Brexit blues 28 Jun 2016 | 12:24 am

    A pedestrian looks at an electronic board showing the various stock prices outside a brokerage in TokyoBy Saikat Chatterjee HONG KONG (Reuters) - Asian stocks rose for the first time in three days on Tuesday while sterling and other currencies advanced as investors scooped up beaten down assets after Britain's vote to exit the European Union stunned financial markets. European markets looked set to follow Asian stocks higher, according to financial bookmakers, and U.S. stock futures rose 0.8 percent, suggesting a stronger opening on Wall Street after a brutal two-day slide. MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.1 percent but the tiny gain belied an impressive turnaround which saw the Japanese stocks rally more than 3 percent from the day's lows, pulling other Asian markets higher.


  • Global equities sell off for second day, safe-havens up in Brexit aftermath 27 Jun 2016 | 7:39 pm

    Traders work on the floor of the New York Stock ExchangeBy Hilary Russ NEW YORK (Reuters) - Global markets sold off for a second straight day on Monday, dragging the British pound to a 31-year low, while gold and safe-haven government debt rallied on Britain's shock vote last week to leave the European Union. Major U.S. stock indexes recorded their worst two-day drop in about 10 months. Banking stocks led losses amid uncertainty over London's future as the region's financial capital. On Wall Street, the S&P financial index fell nearly 2.79 percent. Declines for JPMorgan and Bank of America grew as the day wore on, with the shares down 3. ...


  • Lyft hires investment bank Qatalyst Partners: WSJ 27 Jun 2016 | 7:01 pm

    A smartphone app for Lyft drivers is seen during a photo opportunity in San Francisco(Reuters) - Ride-sharing service Lyft has hired investment bank Qatalyst Partners, the Wall Street Journal reported on Monday, citing people familiar with the matter. Qatalyst Chairman Frank Quattrone has contacted companies including large automakers about acquiring a stake in Lyft, the Journal said, citing the people.


  • Obama uses Hiroshima visit as opportunity to urge no nukes 27 May 2016 | 2:00 pm

    Obama uses Hiroshima visit as opportunity to urge no nukesHIROSHIMA, Japan (AP) — With an unflinching look back at a painful history, President Barack Obama stood on the hallowed ground of Hiroshima on Friday and declared it a fitting place to summon people everywhere to embrace the vision of a world without nuclear weapons.


  • Senate sleuths focus on ex-State Department aide in Clinton email ‘cover-up’ 27 May 2016 | 1:32 pm

    Senate sleuths focus on ex-State Department aide in Clinton email ‘cover-up’As Hillary Clinton seeks to rebound from a highly critical report from the State Department’s inspector general, Senate investigators and a conservative group are zeroing in on newly revealed evidence about the activities of a now retired State Department computer specialist in orchestrating what they charge was a “cover-up” of the former secretary of state’s email practices. The role of John Bentel, whose identity as a key figure in the email probes was first reported by Yahoo News on Wednesday, is expected to be one focus of questioning today when Clinton’s former chief of staff, Cheryl Mills, is deposed in a lawsuit brought by Judicial Watch over the State Department’s handling of Freedom of Information Act requests relating to Clinton’s emails, according to a source close to the case.


  • G7 told to act on antibiotics as dreaded superbug hits U.S. 27 May 2016 | 10:39 am

    Colonies of E. coli bacteria are seen in a microscopic image courtesy of the CDCBy Kylie MacLellan and Ben Hirschler ISE-SHIMA, Japan/LONDON (Reuters) - Britain told the G7 industrial powers on Friday to do more to fight killer superbugs as the United States reported the first case in the country of a patient with bacteria resistant to a last-resort antibiotic. U.S. scientists said the infection in a 49-year-old Pennsylvania woman "heralds the emergence of truly pan-drug resistant bacteria" because it could not be controlled even by colistin, an antibiotic reserved for "nightmare" bugs. In Japan, British Prime Minister David Cameron said leading countries needed to tackle resistance by reducing the use of antibiotics and rewarding drug companies for developing new medicines.


  • Statue of Liberty, other world sites threatened by climate change, says U.N. 27 May 2016 | 10:29 am

    Statue of Liberty, other world sites threatened by climate change, says U.N.The Statue of Liberty is seen in New York harbor. Climate change might dampen Lady Liberty’s glow, according to experts. The United Nations released a report Thursday saying 31 natural and cultural World Heritage sites in 29 countries are vulnerable to the effects of climate change: rising temperatures, rising sea levels, intensifying storms, longer droughts and so on.


  • 19 people rescued from Kentucky cave 31 Dec 1969 | 6:00 pm


The fastest and best way to sell real estate.
auction-style-property-sale