![]() Filtering out stocks with big price drops helps by adding price stability to the mix. This methodology aims to identify companies with a demonstrated ability to sustain growth in revenue and earnings in the past and into the future. Over time the P/E levels may creep up, but that is not necessarily a signal to sell assuming the other criteria remain present. ![]() Buying these stocks at lower P/E levels tends to produce better returns on initial purchases. These criteria are more about when to buy. P/E and forward P/E are below 40 and 35, respectively.Negative numbers mean the company is increasing the shares outstanding and diluting shareholders. Shareholder yield is a combination of dividends, share buybacks and share issuance. Shareholder yield is greater than zero.Each stock should have outperformed the S&P 500 significantly over the last half decade. All stocks on the list are priced above $5 a share and trade an average of at least one million shares per day, providing excellent liquidity. With few stocks meeting this criteria, it’s an excellent measure of historical stock price stability. For reference, 92% of North American stocks have had a price drop bigger than 50% within the past decade. Each stock has not experienced a sustained decline of more than 50% in the last 10 years. ![]() Actual EPS numbers should have increased steadily over the past 10 years. Each company has increased revenue and EPS an average of 8% or more per year over the last five years.
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