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29 Attractive Stocks That Pass Winning Investment Strategy Screens – Forbes

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Over the years, AAII has studied the works of many successful investors. The goal has been to learn from the winning strategies and techniques of investment legends, modern day investment professionals with a proven record of long-term success and even prominent academic research on investing. The desire has been to use this knowledge to create screening strategies that investors can use to identify interesting investment candidates.

Screening is filtering the stock universe down to a small list of attractive stock ideas. (There are around 40 quantitative screening strategies on AAII.com developed from the works of successful gurus, along with 20 screens based upon academic research and investment factors). The screens range from deep value approaches following the philosophy of investment gurus such as Warren Buffett to earnings and price momentum strategies championed by William O’Neil.

Stocks Passing the Most Screens

In looking at the stocks that pass the screens, an interesting question arises: Is a stock that passes multiple screening approaches more attractive than another stock that just passes one screening approach? Possibly, if the screening approaches that a stock passes are based upon solid financial principles and are diverse enough to capture unique yet desirable qualities.

There are 972 stocks that currently pass at least one of the 60-plus screening strategies presented on AAII.com, but there are only 29 exchange-listed stocks passing four or more screens, and they are the stocks that are presented below.

The stocks are ranked by how close their price relates to their 52-week high price. With the dramatic market ups and downs over the course of this year, it is interesting to identify which companies are close to hitting new highs. Evercore

EVR
passes eight of our screens and is trading near its 52-week high. Evercore is a global investment banking advisory company.

For the most part, the stocks currently passing multiple screens are meeting the criteria for value or growth approaches that identify companies with low prices relative to company financial measures, such as assets or earnings, or companies exhibiting strong, consistent and prolonged growth. For example, the Buffett Hagstrom screen combines price relative to free cash flow, historical earnings growth, industry-beating margins and return on equity. All these elements are well known and well used by value investors. The approach identifies “excellent” businesses based on the prospects for the industry and the ability of management to capitalize on opportunities for the ultimate benefit of shareholders. When combined, the characteristics help to indicate if a candidate merits further analysis.

The table lists two price-earnings ratio calculations: one based upon trailing earnings per share, and one that is determined using forward earnings expected for the current year. The price-earnings ratio is a basic valuation measure, but it can be more difficult to use during economic turning points. If you see a forward price-earnings ratio that is lower than the trailing ratio, it indicates that analysts are expecting future earnings to be higher.

The market capitalization (number of shares outstanding times the share price) is a common way to measure the size of a firm. With a market cap of $30.5 billion, Cadence Design Systems

CDNS
is the largest company to pass four or more screens. The company provides solutions that enable its customers to design electronic products.

While you cannot automatically consider a group of consensus stocks to be a diversified portfolio, they may present a good starting point for constructing your personal portfolio. Optimally, the group of screening approaches a stock passes is diverse enough to capture unique, yet desirable qualities.

All-Star Stocks: Stocks Passing the Most Screens (Ranked by Price as a % of 52-Week High)

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The stocks meeting the criteria of the approach do not represent a “recommended” or “buy” list. It is important to perform due diligence.

If you want an edge throughout this market volatility, become an AAII member.

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Without investment, universities and colleges heading for a crisis – Toronto Star

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Universities and colleges employ hundreds of thousands of people, educate and train over two million students annually and drive research that improves the lives of all Canadians. In cities and communities across the country, they are regional economic drivers and social and cultural centres. Our world-class post-secondary education system is critical to our prosperity, underpins our democracy and finds solutions to key challenges, be it COVID or climate change.

All of this is in peril — and not just because of the COVID-19 pandemic.

Public funding for post-secondary education has been stagnant for more than a decade. COVID-19 has brought the system closer to the edge. Strategic investments in universities and colleges must be made now to ensure a strong economic recovery and a more resilient future for Canadians.

COVID-19 has strained resources and reduced revenues, especially from international student fees. For decades, in the absence of sustainable government funding, students and their families have been asked to pay more. Private sources of funding now make up over half of university revenues, up from just 20 per cent when the parents of students may have once been on campus.

Since the last recession in 2008, provincial government spending in the sector has decreased by one per cent in real terms. Meanwhile, student enrolment has grown by more than 20 per cent over the same time, and income from tuition by nearly 70 per cent. With more than half of all university students already taking on an average of $28,000 of debt to get an education, reliance on student fees to solve the funding crisis simply isn’t sustainable.

There are three areas that need immediate action from the federal government to put post-secondary education on stable footing and improve quality, affordability and accessibility.

First, we need a national strategy for post-secondary education with goals to tackle education inequality, enhance affordability and strengthen research capacity. The last time the federal government increased the base funding to the provinces and territories for post-secondary education was in 2008 under Stephen Harper and this came with no plan of action to address key challenges.

Secondly, we need to accelerate research through enhanced investments in fundamental research. The government’s own advisory panel recommended funding levels 40 per cent higher than what we are investing today to keep Canada competitive.

The pandemic has also put much research on hold. In a survey of Canadian Association of University Teachers (CAUT) members, two out of three have seen their research stop or stall as a result of the pandemic. This hiatus in research will have a significant downstream impact on the innovation and knowledge that supports Canada’s economy.

Finally, we need to secure opportunities for youth and the unemployed by decreasing upfront costs and moving to a free tuition model for working- and middle-class Canadians. The government’s temporary doubling of the Canada Student Grant this year will help students cover costs this term, however it is still less than the average tuition.

It is also an unsustainable approach.

While we have seen increases in student financial assistance, we have also seen increases in tuition. As some provincial officials half-joke, the best way to leverage federal funding for post-secondary education is to raise tuition, as this will increase demands for federally funded student financial assistance.

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Some of the necessary changes to the funding model for post-secondary education could be met by redirecting the $900 million in unused federal funding from the failed Canada Student Service Grant program. The government could also repurpose the Canada Training Benefit to ensure that Canadians have more meaningful and timely access to educational opportunities.

There are many public services and sectors that need strengthening to get us out of the current crisis and be better for it. Post-secondary education is an essential foundation for social cohesion, science, innovation and economic success in Canada, and must not be taken for granted. We cannot let it languish now, when it is so critical to the well-being of our country.

Brenda Austin-Smith is a film studies professor and head of the English, theatre, film and media department at the University of Manitoba. She is also president of the Canadian Association of University Teachers, which represents 72,000 academic staff at universities and colleges across the country.

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Glimmer of hope for investment in Europe: EY survey – The Journal Pioneer

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By Mark John

LONDON (Reuters) – Global executives see a smaller hit to their investment plans for Europe than they did earlier this year and are somewhat more upbeat about the continent’s future appeal, a questionnaire by professional services group EY found.

The survey, conducted in October before a series of COVID-19 vaccine trial breakthroughs, showed that 42% of executives now expect a decrease in their 2020 investment plans and 31% plan to delay them to 2021.

That compared with 66% who expected decreases and 23% who saw delays when asked the same question back in April. This time around, a small number – 10% – even saw an increase to their 2020 investments, something no one did in April.

While that still means a big overall hit to foreign direct investment after 2019’s record year, EY noted that 21% of those surveyed believed Europe would be more attractive for investment post-Covid compared to just 8% in April.

“It is promising that investors believe that over the next three years, Europe will become a much more attractive destination for investments than before pandemic,” EY Area Managing Partner Julie Teigland said.

The findings were based on interviews with 109 global executives across 14 industries in October.

Upbeat news from vaccine trials are starting to support economic sentiment. The monthly eurozone Purchase Managers Index (PMI) for November saw a rise in its “future output” component in November to its highest level since February.

Among the other takeaways from the EY survey, 63% expected faster roll-out of digital customer access to surveys in the next three years (versus 55% in April) but only 37% now saw a reversal of globalisation (versus 56%).

(Reporting by Mark John, editing by Ed Osmond)

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Glimmer of hope for investment in Europe: EY survey – TheChronicleHerald.ca

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By Mark John

LONDON (Reuters) – Global executives see a smaller hit to their investment plans for Europe than they did earlier this year and are somewhat more upbeat about the continent’s future appeal, a questionnaire by professional services group EY found.

The survey, conducted in October before a series of COVID-19 vaccine trial breakthroughs, showed that 42% of executives now expect a decrease in their 2020 investment plans and 31% plan to delay them to 2021.

That compared with 66% who expected decreases and 23% who saw delays when asked the same question back in April. This time around, a small number – 10% – even saw an increase to their 2020 investments, something no one did in April.

While that still means a big overall hit to foreign direct investment after 2019’s record year, EY noted that 21% of those surveyed believed Europe would be more attractive for investment post-Covid compared to just 8% in April.

“It is promising that investors believe that over the next three years, Europe will become a much more attractive destination for investments than before pandemic,” EY Area Managing Partner Julie Teigland said.

The findings were based on interviews with 109 global executives across 14 industries in October.

Upbeat news from vaccine trials are starting to support economic sentiment. The monthly eurozone Purchase Managers Index (PMI) for November saw a rise in its “future output” component in November to its highest level since February.

Among the other takeaways from the EY survey, 63% expected faster roll-out of digital customer access to surveys in the next three years (versus 55% in April) but only 37% now saw a reversal of globalisation (versus 56%).

(Reporting by Mark John, editing by Ed Osmond)

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