Earnings Growth Strategy
The Earnings Growth strategy is suited for investors seeking high growth rates. It is designed to select stocks with strong reported returns on equity. To track the performance of the strategy, a portfolio is tracked which is designed to hold up to 20 stocks, with a maximum of 5 stocks in one industry group. The strategy emphasizes stocks with high current profitability to equity ratios. Importance is also placed on stocks with high earnings estimate revisions and earnings surprise. Stocks are screened to ensure that they have minimum liquidity, analyst coverage, adjusted book value and earnings estimate revision as well as a limit on dividend payout ratio.
