Unveiling the Power of James O'Shaughnessy's Growth Screen
A Guide to Smart Stock Selection
James O'Shaughnessy's Growth Screen is a potent tool for investors seeking strategic stock picks as explained in his book “What Works On Wall Street”.
At its core, O'Shaughnessy's Growth Screen aligns with long-term investment principles and is designed to identify stocks with robust growth potential by…
using quantifiable metrics, removing subjective biases and emotions from stock selection;
emphasizing earnings growth promoting sustained portfolio growth;
helping investors avoid speculative bets, focusing on companies with a proven track record of success.
It combines key fundamental metrics to pinpoint companies exhibiting strong earnings growth, a crucial factor for long-term success in the market:
Earnings Per Share (EPS): Prioritize stocks with consistently increasing EPS, indicating sustained profitability.
Price-to-Earnings Ratio (P/E): Look for reasonable P/E ratios, balancing growth prospects with current stock valuations.
Price-to-Sales Ratio (P/S): Evaluate stocks based on P/S ratios to assess sales efficiency.
Relative Strength: Identify stocks with strong relative strength, showcasing resilience in various market conditions.
James O'Shaughnessy's Growth Screen is a valuable ally for investors navigating the dynamic stock market. By understanding its essence, employing the recommended metrics, and embracing its advantages, you can elevate your stock-picking strategy to new heights. Unlock the potential for sustained growth and informed investment decisions with this proven methodology.
As stocks are newly qualified by the screen, they are reported on my private Telegram Channel.