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🤙
Alberto Wallis's avatar
$8.7m follower assets
Upcoming Earnings Calendar (March 21st-25th)
Two heavy-hitters reporting next week: Nike and Adobe. Really interested in seeing what Nike has to say about supply chains after the recent events. Carnival Cruise and Nio should also be interesting. Full list of companies below.

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Key Data Points on Home Builders
I recently made the homebuilder theme my biggest investment. I'm invested in many stocks across the sector.

Yesterday, $KBH reported earnings and it appears the market reacted positively after hours. The housing market is being driven by high demand and constrained supply. Homebuilders are priced as cyclical stocks but I don't think we are anywhere close to the top of the cycle. The market is underestimating the drivers of this cycle (demographic + supply shocks). On top of that, most homebuilders have repaired their balance sheet and have much less capital tied into the land than in the previous cycle.


Data Points:
$KBH reported yesterday after the market closed.
$MTH on January 26 (after market close)
$PHM on February 1st (before market open)
$MDC on February 1st (before market open)
$DHI on February 2nd (before market open)
$TOL on February 21st (before market open)
$LEN on March 14th (before market open)*
$NVR on April 19th (before market open)

Economic Data of Interest
Jan 19th (8:30am) - Housing Starts
Jan 19th (8:30am) - Building Permits
Jan 20th (10:00am) - Existing Home Sales
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Alberto Wallis's avatar
$8.7m follower assets
Upcoming Earnings Calendar (Jan 10-15th)
Earnings season starts next week! Here's what I'm interested in:

  • $TSM is the largest and most important semiconductor company in the world. It's a key supplier for $AMD $NVDA $QCOM $AAPL, so their comments on supply chain and industry outlook carry a lot of weight.
  • Several big banks $JPM $C $WFC report earnings on Friday. While I'm not invested in banks, their comments on corporate credit demand, credit card spending, etc. will give us a glimpse of the health of the economy.

If you'd like an easier way to track earnings dates, you can automatically sync your portfolio's earning dates to your personal calendar with just a couple of clicks here.

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This week's featured earnings (Sep 20 - 24)
Another slow week as we wrap up the quarter of earnings, but some interesting companies like $ADBE, $SFIX and 2 retail giants ($COST and $NKE), 2 homebuilders ($LEN and $KBH) and $FDX

I'll be closely watching

  • Homebuilders given the tailwind in demand for housing and I believe we are only mid-way through the cycle in these cyclical stocks. I only own $PHM but interested esp in buying $LEN if there is a correction. While prices are moderated, very interested in their backlog numbers
  • Always interested to see how $NKE is doing in their DTC.
  • I'm also interested in $RAD to compare them $WBA and $CVS in my portfolio, and see if any impact of delta variant on store visits.

Any companies you are closely watching this week?
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Featured earnings week of June 21
A day late in posting this week, but I guess the fun starts tomorrow. It's really the tailend of earnings, but a surprising number of interesting companies. I first discovered $PLUG from @eric's recent post, so will learn about them through the earnings.

One's I'm interested in are $KBH (going to compare them to $LEN), $FDX (interesting non-amazon ecommerce stats), $ACN (on my watchlist. they've been closely riding the SaaS implementation wave and crushing it), $NKE (on my watchlist. especially interested on their progress on d2c)

Which ones are you interested and is there a specific business update you looking for an update on?
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Agree on $KMX. I should have pointed that out. In fact on my watchlist. I am intrigued how their omni channel strategy holds to pureplay online players like $CVNA, not to mention how much cheaper this stock is compared to pureplay online.
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