A Lot Of New Stocks Entering The Magic Formula This Week
One of my favorite things about earnings season is that it causes some turnover in the often stagnant Magic Formula (MFI) screens, giving us some new stocks to look into!
This week, we had a load of turnover, including several stocks that have either never appeared in the screens, or have not appeared in many years.
Part of the whole MagicDiligence process is identifying "not really" Magic Formula stocks that show up in the screens from time to time. eBay (EBAY) is one of those stocks. While not extremely expensive, I only calculate a earnings yield of about 6.4%, which wouldn't put it close to MFI. It looks like the spin-off of Paypal (PYPL) might not be properly accounted for, yet.
Some stocks we've seen in MFI before, but not in some time, include Spirit Airlines (SAVE), Select Comfort (SCSS), and Western Digital (WDC). Spirit is near the bottom of its 52-week range, sold off along with the rest of the airlines but a very good operator throughout its history. Select Comfort, maker of the "Sleep Number" bed, has been a volatile stock for many years and traditionally a good pick when it hit the MFI screens. Western Digital, of course, is in the process of acquiring SanDisk (SNDK), another frequent Magic Formula stock in its own right.
Here are the full lists below. Lot of names here!
Entering the 50 over 50 million screen:
Dropping out of the 50 over 50 million screen:
Entering the 50 over 1 billion screen:
eBay Inc. (EBAY)
International Business Machines (IBM)
MKS Instruments Inc (MKSI)
Polaris Industries Inc (PII)
Spirit Airlines Inc (SAVE)
Select Comfort Corp (SCSS)
Syntel Inc (SYNT)
Western Digital Corp (WDC)
Dropping out of the 50 over 1 billion screen:
Apollo Group Inc (APOL)
Coach Inc. (COH)
Crane Co. (CR)
General Dynamics Corp (GD)
Gilead Sciences Inc (GILD)
Block (H&R) Inc. (HRB)
Interval Leisure Group Inc (IILG)
Microsoft Corp (MSFT)
Rockwell Automation Inc. (ROK)
Entering the 30 over 3 billion screen:
Dropping out of the 30 over 3 billion screen:
Joel Greenblatt and MagicFormulaInvesting.com are not associated in any way with this website. Neither Mr. Greenblatt or MagicFormulaInvesting.com endorse this website's investment opinions, strategy, or products. Investment recommendations on this website are not chosen by Mr. Greenblatt, nor are they based on Mr. Greenblatt's proprietary investment model, and are not chosen by MagicFormulaInvesting.com. Magic Formula® is a registered trademark of MagicFormulaInvesting.com, which has no connection to this website. The information on this website is for informational purposes only and solely represents the views and opinions of the author. No warranty is provided or implied as to the accuracy, completeness, or timeliness of this information. This information may not be construed as investment advice of any kind, nor can it be relied upon as the basis for stock trades. DON'T RELY SOLELY ON THIS WEBSITE'S INFORMATION OR STATISTICS! Please do your own research before buying. Alexander Online Properties LLC, the proprietor of this website, is not responsible in any way for losses or damages resulting from the use of this information. Alexander Online Properties LLC is not a registered investment advisor. All logos are trademarked properties of their respective companies.
© 2008-2017 Alexander Online Properties LLC