Jeffrey Dow Jones
Hedge fund analyst, newsletter provider, research analyst, portfolio strategy

The Cheapest High Growth Stock In The S&P Is... Rowan Companies?!

I've been working on a new research tool for our Alpine Advisor clients. The basic idea is to screen a whole bunch of stocks, and use a special formula to weight multiple valuation metrics alongside some growth metrics. Then we blend it all together to figure out which stocks have the best balance of future growth and present cheapness.

Unfortunately, I don't have sufficient past data to test this using walk-forward analysis. I can't say for sure that currently-depressed high-growth stocks are any better a bet to outperform the market than any others. Theoretically, they should be. Stocks, after all, are nothing more than claims on future earnings and if you pay a little bit for a lot of growth,...

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