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Reduces the universe to 225 stocks, the Research Buy List |
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Perform fundamental analysis on the 225 stocks within the Research Buy List. |
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The following criteria determine the initial attractiveness of fundamentals for all Priority List Stocks: |
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Improving business outlook (accelerating revenues and earnings) |
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Rising return on invested capital demonstrating competent management |
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Positive earnings estimate revisions as the market re-evaluates the company |
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Valuation that is at a discount relative to improving fundamentals |
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Assuming the stock's fundamentals prove compelling based on the above, further fundamental analysis is conducted to assess the company's positioning relative to: |
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Cyclical conditions |
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Competitive environment |
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Brand franchise |
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Technological advantage |
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Use our Strategic Sector Allocation Research to determine which sectors should benefit during the current phase of the business cycle. |
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The research takes into consideration the impact that Fed Policy and the yield curve have on expectations for changes in the market risk premium |
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Apply risk management techniques and portfolio optimization to create a portfolio of the most attractive 30-40 stocks based on our Stock Rating and Valuation System. |
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