One of the big investment themes that has been attracting attention recently, and especially since the election of Donald Trump as US president in November, is the resurgence of 'value' investing (you can read my two cents worth on the topic from shortly before the US election here). For nearly a decade, a so-called 'value' investment style (buying stocks and sectors with low valuations relative to peers and their history) has generally underperformed a 'growth' style (buying stocks expected to grow earnings fast). But the tick up in bond yields that started last year, especially following Mr Trump's election, has triggered a reversal in fortunes.
My screen this week is based on a 2000 paper by accountancy professor Joseph Piotroski, which nails it colours firmly to the mast of a value style. Indeed, the performance of the screen last year, following two disappointing outings, lends credence to the view that 'value' is back in vogue.