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. 

To continue reading, subscribe today

and enjoy unlimited access to the following:

  • Tips of the Week
  • Funds coverage
  • Weekly features on big investment themes
  • Trading ideas
  • Comprehensive companies coverage
  • Economic analysis
Subscribe to Investors Chronicle

Subscribe today

Full access for just £3.37 a week:

• Tips and recommendations - to beat the market 
• Portfolio clinic & Mr Bearbull - build a well-planned portfolio 
• Expert tools - track and manage investments effortlessly
• Plus free delivery to your home or office

Subscribe Now