Select S&P Sector Stocks

Here is a simple screen based on S&P analysis.  It consists of the top 3 stocks (if any) in each of 10 sectors that pass these criteria:

  1. year ahead expected relative market performance above average (4 or 5 of 5)
  2. price versus current fair value undervalued (4 or 5 of 5)
  3. PEG ratio <= 2 and >= 0.5
  4. yield > 0
  5. ThompsonReuters StarMine year ahead expectations not negative
  6. stocks ranked by PEG from lowest to highest
  7. if there is a tie in the PEG ratio, the higher yielding stock is selected
  8. if less than 3 stocks meet criteria for a sectors only those meeting criteria are selected.

As of November 7, there are 21 stocks that meet the criteria:

Celanese Corporation CE
Comcast Corp Class A CMCSA
PetSmart Inc. PETM
Whirlpool Corporation WHR
CVS Caremark Corp CVS
Wal-Mart Stores Inc WMT
Chevron Corp CVX
National Oilwell Varco, Inc. NOV
Bank of Montreal BMO
Bank of Nova Scotia BNS
Franklin Resources Inc. BEN
Aetna Inc AET
Humana HUM
WellPoint Inc WLP
Norfolk Southern Corporation NSC
PACCAR Inc PCAR
Trinity Industries, Inc. TRN
Apple Inc AAPL
International Business Machines IBM
International Paper Co. IP
Qualcomm, Inc. QCOM

This table contains the current yield, 1-year earnings growth rate and price-to-cash flow for the screen selected companies.

(click image to enlarge)

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