These Are A Few Of Our Favorite Screens

(30) Launch Pad Candidates (12/9/2016)

As 2016 winds to a close and we start thinking about the Groundhog 2017, it’s time to go shopping for the best opportunities in the coming year. As we recently featured and reminded, it can make sense to peruse the companies with the largest incremental step changes in earnings expectations for the coming year.

Yes, Virginia, we realize that virtually no one can portend stock prices and indices over such a short time frame — but as our contest participants have shown over the last several years, it can make sense to find stocks that look good for the long term that appear to be poised or perhaps about to experience some sort of catalyst. This was the Better Investing premise of featuring a long-term Stock to Study while also giving a nod to a shorter time horizon for the Undervalued feature.

This is also what we do with the weekly updates of the Fave Five and the Weekend Warrior tracking portfolio.

The accompanying figure demonstrates what we seek — companies with the biggest boost in expected earnings for 2017 versus 2016. As shown for Glaxo Smith Kline (GSK), their work in a number of key development areas could restore growth and profitability to this venerable pharmaceutical leader.

And if that doesn’t work out, there’s always AB InBev (BUD) …

Screening Criteria

• 2017 EPS/2016 EPS > +50.0%
• Quality Ranking > 60 (Excellent or Good Quintiles)

For context, the median year-over-year (2017/2016) change in EPS is +11.8%.

The average 1-year total return forecast (ACE) is currently 8.1%.

Our median long term return forecast (MIPAR) is now 5.0%.