Weekly, my team at E.B. Capital Markets, LLC screens our universe of widely traded ADRs searching for those having passed seven distinct hurdles.
For the better part of a decade, we've been providing the results of this screen to our institutional clients. It serves as a valuable tool for investors looking to quickly identify new stocks for consideration.
The scores also help investors objectively determine when it's time to add to or sell stocks from portfolios.
Our model, outlined more in my book here, includes fundamentals, such as earnings growth and valuation. It includes technical inputs, such as short- and long-term money flow. And, it also incorporates the seasonal price history by quarter, allowing managers insight into timing.
The following table breaks out the top scoring ADRs across all regions and countries, ranked descending by the score we give each stock every week.
ADRS | 9/10/2012 | 4 Week MA | |||
|---|---|---|---|---|---|
Company Name | Symbol | Sector | COUNTRY | SCORE | SCORE |
SAP | TECHNOLOGY | Germany | 100 | 81.25 | |
HDFC Bank | FINANCIALS | India | 95 | 80 | |
Royal Bank of Canada | FINANCIALS | Canada | 95 | 76.25 | |
B C E Inc. | TELCO SERVICES | Canada | 90 | 87.5 | |
Eni | BASIC MATERIALS | Italy | 90 | 68.75 | |
Randgold Resources | BASIC MATERIALS | South Africa | 90 | 82.5 | |
ICON | SERVICES | Ireland | 90 | 73.75 | |
Grupo Aeroportuario del Pacifico | SERVICES | México | 90 | 76.25 | |
Philippine Long Distance Telephone | TECHNOLOGY | Philippines | 90 | 75 | |
Spreadtrum Communications | TECHNOLOGY | China | 90 | 85 | |
Turkcell Iletisim Hizmetleri | TECHNOLOGY | Turkey | 90 | 88.75 | |
AXA | FINANCIALS | France | 85 | 78.75 | |
AXIS CAP HOLDINGS | FINANCIALS | Bermuda | 85 | 65 | |
COPA HOLDINGS | SERVICES | Panama | 85 | 63.75 | |
Gerdau | BASIC MATERIALS | Brazil | 85 | 70 | |
Bank of Montreal | FINANCIALS | Canada | 80 | 77.5 | |
EnCana Corp | BASIC MATERIALS | Canada | 80 | 76.25 | |
China Life Insurance | FINANCIALS | China | 80 | 58.75 | |
Logitech International | TECHNOLOGY | Switzerland | 80 | 61.25 | |
LG Display | TECHNOLOGY | Korea | 80 | 78.75 | |
Sanofi | HEALTHCARE | France | 80 | 76.25 | |
Tenaris | BASIC MATERIALS | Argentina | 80 | 78.75 |
Additionally, we crunch the weekly scores to gather insight into sector trends. This helps investors see where they should be focusing their attention, both for long- and short-side exposure. In the most recent week, healthcare and financials offer the highest average score, while consumer and utilities score weakest.
Sector | Avg. Score |
|---|---|
HEALTHCARE | 53 |
FINANCIALS | 51.52 |
BASIC MATERIALS | 49.91 |
INDUSTRIAL GOODS | 49.69 |
SERVICES | 48.65 |
TECHNOLOGY | 47.06 |
CONSUMER GOODS | 42.74 |
UTILITIES | 41.54 |
Finally, we aggregate the scores by geography such as zone and region. The following table shows you the average score by country. As you can see, Canada and Germany score highest. Greece, thanks to international shipping stocks, also scores strong.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
