John Neff’s Screen Results
John Neff, turns out, is a lot like me. Likes buying quality companies when they’re undervalued and out of favor. Makes sense to me. So he had a method/equation he used to find investable companies. If Total Return (earnings growth + dividend yield) divided by the price to earnings ratio was at least 2:1, he took interest. Using numbers provided by Simply Wall Street, here is a list of quality companies whose growth + yield are more than 2x the current P/E ratio. All are profitable and relatively stable, out of favor and relatively cheap. Obviously, do your own research. I just want to share some of the results to offer up new ideas to anyone looking to spread their wings.
Here are the results, I do own some of these FYI.
I share my portfolio, but to save anyone time, I currently own $MATX , $WIRE , $BCC , $MDC , and held $LU is the past, but it appreciated like 30% in a week immediately after I bought it (100% luck to happen that quickly), that’s a sell in my book. Gotta remember to not be greedy, pigs get slaughtered. If I can make 20%-30% in a month, I’ll take it and move on. Too many opportunities to make money to be in love with any stock.
I hope that provides some new companies for a few value investors. Enjoy!
Remember, if you like charts, you’ll hate most of these stocks😉I go against the crowds momentum, hence the success.
On a side note, $MATX & $WIRE are showing up on lots of my different quality screens. Those are the two you may want to evaluate first😉
Let me know what you like or hate, be sharing one a week for a while.
PS: I mentioned I use ZERO forward looking anything; however, to build Neff’s screen, I had to use 12 month FWD earnings estimates to estimate total return. I reduced analyst earnings estimates by 10% to increase my margin of safety further and ensure estimates were conservative. This will be the ONLY time forward looking anything will be used in a post of mine🤙
Good morning contrarians! Russia-Ukraine continues to hang over the market. Yesterday we had a nice relief rally. Was that it now? Nobody knows, which is why this is still very much front and center in investors’ minds. Earnings are a bit of a distraction but only really for individual stocks.

On that note, Hilton Worldwide ($HLT) just missed on EPS but beat revenues while Owens Corning ($OC) beat both top- and bottom-line estimates and announced a stock buyback to boot. Kraft Heinz ($KHC) and Shopify ($SHOP) are also due to report before the open at 0930. After the close at 1600 we get Cisco ($CSCO), Nvidia ($NVDA), Applied Materials ($AMAT), Marathon Oil ($MRO), TripAdvisor ($TRIP), AIG ($AIG), DoorDash ($DASH), and Cheesecake Factory ($CAKE).

Underneath the surface, retail sales (out at 0830) could create a fresh point of concern if they come in weaker than anticipated.

And of course we have the Fed looming, but not sure what the FOMC minutes (out at 1400) will do about that. Fed officials have made their stances pretty clear in public comments these last couple of weeks.

Add it all up and it could make for a pretty quiet day — Russia-Ukraine notwithstanding.

Full briefing and podcast here:
Have never met someone that actually owns $CAKE but I sure do enjoy the restaurant. I'm not sure about their business model but I sure am bullish on their waiters'/waitresses' memories. That menu is an encyclopedia!
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