The problem

The rising income and EPS growth screener used to operate, at least in part, based on the buzz score, and on estimates. Unfortunately, we lost the following data fields:

1. All estimates fields
2. Insider ownership
3. Institutional ownership
4. Large block trades

This happened because we had to make tradeoffs when we switched to the new data source. So, I present the new, reconstituted screener for your enjoyment.

The solution

We decided to focus this screener on being simple, and ranking based on what we know works, with the filter that all stocks that passed had to match the rising EPS and rising income criteria.

We ask there that the company be in the top 3^rd, that the free cash flow is going up at least 5%, and that the profit margin is also going up by 5% yearly. The rising EPS and rising EBITDA^[1], along with these constraints ensure that we’re getting growth stocks. The ranking criteria ensure that we have stocks that will go up. We show the panels below:

Rising EPS
Rising ebitda
Order by

The results

The results, seen from 1995, paint a mixed picture: underperformance until 2000, and market crushing thereafter, marred only by a miserable 2011 and a mediocre 2006 and 2007.

1. http://www.investopedia.com/terms/e/ebitda.asp ↑