Over the course of each year, I run a multitude of screens to find the best value stocks for possible investment in the Value Stock Guide portfolio and recommendations to the members. The following are the screens that list some of the best stocks for 2014.
How to Read these Screens
Please remember that these stocks are still part of the due diligence process so should not be considered as a recommendation to buy. If you are a member, you receive recommendations in your dashboard and through emails. If you are not a member, use these ideas as a starting point. You should aim to take about 10% of these stock ideas and look into them at a deeper level – this includes understanding the business and its drivers, reviewing the financials, figuring out the competitive landscape, determining the intrinsic value of the stock and judging the gap between price and value. Each of the screens listed below should yield 1-3 stocks that may be worthy of your investment dollars.
These screens are being categorized according to the asset type. Some stocks can span 2 or more of thee asset classes, in which case I have listed them according to the focus of the screen. This way, if you are a dividend investor, you can zero in on the screen that will be of a greater interest to you. As new screens are run, they will be added to the lists below.
|Dividend Stocks||Large Cap Stocks||Mid Cap Stocks||Small Cap Stocks|
Common Themes in these Screens
While all these screens have a different focus, the common idea across these screens is to uncover stocks that may be undervalued. As a result, you will find that great attention has been paid to run the screens for value. Each of these screens may have different valuation indicator being tested and the introductory text outlines the key criteria. Also please keep the date of the screens in mind. It is still worthwhile to check the older screens. While some of the stocks in there may not be a good value any more, a few other stocks may have become a better value and you do not want to miss these.
Are these Really the Best Stocks for 2014?
There are no absolutes in investing. Many times, the best performing stock at the end of the year may not have any reasonable thesis for investment at the beginning of the year. Business conditions change over the course of time, companies launch new products or services, competitors cease to exist, regulations change, etc. The best we can do is to continue to evaluate stocks with as many criteria as possible as we go along and make appropriate decisions. The goal at Value Stock Guide has always been to maximize returns while minimizing risk. Therefore we do not punt at a hot new IPO, or stocks in the industries that are trading at exuberance not supported by fundamentals. This means that we may lose out on some of the outstanding returns in the market but over long term, this is more than offset by avoiding the spectacular failures as well.
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