Stock Screens 

Feast on pubs and restaurants in 2018

Feast on pubs and restaurants in 2018

This time last year I introduced a screen that tried to assess sector prospects using two of the factors researchers have found to be most influential on future share price performance: value and momentum. Indeed, regular readers of this column may be aware that I am a fan of playing value and momentum off against each other. However, last year I struggled to find a valuation metric that allowed me to make decent comparisons between the wide variety of sectors that make up the UK listed market. In the end, I plumped for dividend yield as a universal valuation measure. Specifically, the screen looked at where sector yields sat compared with the long-term average. I think I can do better than that this year by using a valuation method I introduced in this column at the end of October. The idea is to look at how a stock is being priced against the ultimate source of its earnings. 

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