7 Stocks That Survive An In-Depth Screen

by: The Financial Lexicon

In a previous article, I outlined a recent equity screen I ran with the following eight criteria:

  1. Market capitalization greater than $5 billion
  2. Dividend yield of 2% to 4%
  3. Beta between one and two
  4. Short interest as percentage of shares outstanding less than or equal to 3%
  5. Sector is not Financials
  6. There must be an option chain
  7. Interest coverage greater than ten
  8. Trading 20% or more below 52-week high

The screen returned 12 companies, five of which have American Depositary Receipts (ADRs) on U.S. exchanges, and seven of which are common stocks. After sharing the five ADRs, I would now like to present the seven common stocks that made it through the screen.

Freeport-McMoRan Copper & Gold (NYSE:FCX) is an international mining company and the world’s largest publicly traded copper producer. FCX is also the world’s largest producer of molybdenum, as well as a producer of gold. The company’s estimated consolidated reserves of copper are approximately 102 billion pounds. Its reserves of gold are roughly 40 million ounces, and its molybdenum, silver, and cobalt reserves are 2.48 billion pounds, 266.6 million ounces, and 700 million pounds respectively. FCX is currently trading at $41.65, which is 32.11% below its 52-week high and well above its December 2008 low of $7.85.

Valero Energy Corporation (NYSE:VLO) is the world’s largest independent petroleum refiner and marketer. VLO has 16 refineries and 10 ethanol plants across the United States, Canada, the United Kingdom, and the Caribbean. Its refining throughput capacity is approximately three million barrels per day. The company also has approximately 6,800 retail and wholesale sites, including its retail stores, the “Valero Corner Store.” VLO is currently trading at $20.45, which is 34.29% below its 52-week high and well above its November 2008 low of $13.94.

Talisman Energy (NYSE:TLM) is a global upstream oil and gas company with three main operating areas in North America, the North Sea, and Southeast Asia. Its main business activities include exploration, development, production, transportation, and marketing of crude oil and natural gas. TLM is currently trading at $12.12, which is 51.92% below its 52-week high and well above its November 2008 low of $6.42.

Emerson Electric (NYSE:EMR) is a diversified global manufacturer and technology company. Its products and services span seven business areas, including Appliance Solutions (washers, dryers, food waste disposers), Climate Technologies (heating, air conditioning, refrigeration), Industrial Automation (fluid automation systems, etc.), Network Power (power backup systems, etc.), Process Management (intelligent control systems, industry expertise, etc.), Professional Tools (tools for contractors and everyday people), and Storage Solutions (residential, health care, foodservice, commercial storage systems). EMR is currently trading at $47.83, which is 25.91% below its 52-week high and well above its March 2009 low of $24.39.

Eastman Chemical (NYSE:EMN) manufactures and sells chemicals, fibers, and plastics that are used as ingredients in various everyday products. For example, EMN is a raw material producer for the adhesives and sealants industries. Another example of EMN’s product reach is that its plastics are used in over-the-counter drug packaging and flexible bags for IVs. Eastman Chemical has a global reach, with manufacturing sites and sales offices around the world. EMN is currently trading at $44.71, which is 19.24% below its 52-week high and well above its March 2009 low of $8.88. The screen was run after the markets closed on Tuesday, January 10, 2012. On Wednesday, EMN was up 3.35%, pushing it to just under 20% below its 52-week high.

St. Jude Medical (NYSE:STJ) develops medical technology and services focused in the areas of cardiac rhythm management, atrial fibrillation, cardiovascular modulation, and neuromodulation. Its product portfolio includes implantable cardioverter defibrillators (ICDs), cardiac resynchronization therapy (NYSE:CRT) devices, pacemakers, electrophysiology catheters, and more. STJ is currently trading at $35.95, which is 33.65% below its 52-week high and well above its November 2008 low of $24.98.

Rockwell Automation (NYSE:ROK) helps manufacturers with industrial automation and information solutions through a variety of products, software, and services. Among others, some of its product lines are Allen-Bradley, Rockwell Software, Anorad, and ICS Triplex. ROK’s global reach spans 80 countries. Its stock is currently trading at $77.98, which is 20.58% below its 52-week high and well above its March 2009 low of $17.50.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Disclaimer: I cannot make any guarantees that the data pulled by the screen is the most up-to-date data available, nor can I guarantee that the data referenced above is entirely accurate. The stock screener used inputs from third party vendors to compile the list of stocks mentioned above. The aforementioned list of stocks is meant to be an idea generator. If you are interested in any of these securities, please do your own due diligence and make sure it suits your needs.