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I conducted a screen in January which looked for:

  1. earnings growers still reasonably priced as judged by the PEG ratio
  2. low debt
  3. a history of high return on equity and investment, and
  4. price momentum as gauged by the percentage the stock is trading to its 250 day high.

As I promised in the original article, here is how the original 8 performed since the open on January 28th. until the close February 24th. I have also added a link on my blog with the spreadsheet results. The list is not a blind buy-and-hold suggestion but I think an investor could find profits by further investigating the list or employing a disciplined trading strategy which includes stop losses, such as the one I detailed here. The original 8 outperformed the S&P 500 by a wide margin, but underperformed a common small cap value ETF.


Symbol Company Trend Analysis 1/28/10 Open 2/24/10 Close Return
CNU Continucare Corporation Here 5.14 4.57 -11.09%
EZPW EZCORP, Inc. Here 18.27 19.86 8.70%
LHCG LHC Group, Inc. Here 32.43 30.7 -5.33%
DECK Deckers Outdoor Corporation Here 103.23 102.03 -1.16%
AZO AutoZone, Inc Here 156.69 164.96 5.28%
INTC Intel Corporation Here 20.3 20.7 1.97%
PTI Patni Computer Systems Limite Here 19.7 21.12 7.21%
PMTC Parametric Technology Here 16.65 17.57 5.53%
-- -- 1.39%
Benchmarks
SPY S&P 500 ETF Here 110.19 110.82 0.57%
VBR Small Cap Value ETF Here 54.33 55.73 2.58%


Running the same screen on February 24th using stockscreen123, I come up with the following list which I will update again in about a month. You can track the portfolio on the right hand side of my blog under the name 'Low PEG High Momentum:'

Ticker Name Trend Analysis
EZPW EZCORP, Inc. Here
PTI Patni Computer Systems Limite Here
TSCO Tractor Supply Company Here
JOSB Jos. A. Bank Clothiers, Inc. Here
CNU Continucare Corporation Here
FOSL Fossil, Inc. Here
FCFS First Cash Financial Services Here
LHCG LHC Group, Inc. Here
DECK Deckers Outdoor Corporation Here
NSR Neustar, Inc Here
AZO AutoZone, Inc. Here
CMG Chipotle Mexican Grill, Inc. Here
AAPL Apple Inc. Here
GILD Gilead Sciences, Inc. Here
AAON AAON, Inc. Here
CPLA Capella Education Company Here
STRA Strayer Education, Inc. Here
BIDU Baidu, Inc. (ADR) Here
TWLL Techwell, Inc. Here
WWW Wolverine World Wide, Inc. Here
NVO Novo Nordisk A/S (ADR) Here
OTCPK:CAGC China Agritech Inc. Here
DWA DreamWorks Animation SKG, Inc. Here

Disclosure: No positions in stocks mentioned

Source: Top Momentum and Low PEG Stocks