·
Get
a copy of the weekly “Summary & Index”
·
On
the first page of the Summary & Index, under “SCREENS,” locate the pages on
which the following two screens begin.
o
Timely
Stocks In Timely Industries
o
Highest
Growth Stocks
·
Copy/print
those screen lists
·
On
the first page of the Selection & Opinion, under “In This Issue,” locate
the page on which “Model Portfolios:
Recent Developments” begins. The
model portfolios are:
o
Portfolio
I: Stocks With Above-Average Year
Ahead Price Potential
(Suitable for
more aggressive investors)
o
Portfolio
II: Stocks for Income and Potential
Price Appreciation
(Suitable for
more conservative investors)
o
Portfolio
III: Stocks with Long-Term Price Growth
Potential
(Suitable for
investors with a long-term horizon)
·
Copy/print
the ” Model Portfolios: Recent
Developments” section
·
The
Section & Opinion section usually includes one or two of the following
periodic screens:
o
30
Largest Market Capitalizations
o
Companies
with a Ten Year Record of Increasing Dividends
o
Growth
Stocks with Moderate Risk
o
Income
Stocks with Worthwhile Total Return Potential
o
Low
Risk Stocks fore Worthwhile Total Return
o
Stocks
for Dividend Growth and Low Risk
o
Stocks
for Long-Term Gains
o
Stocks
with A++ Financial Strength Ratings
o
Stocks
with Large Upward Revisions in Earnings Estimates
o
Timely
Growth Stocks
o
Timely
Stocks with Healthy Price Appreciation Potential
o
Timely
Stocks with High Price and Earnings Momentum
o
Timely
Stocks with High Return on Equity
o
Timely
Stocks with Low Risk
·
Copy/print
the periodic screens from the past few issues
Narrowing the Field
At this point, you should have copies of the
following lists and can start your own screening:
·
Timely
Stocks In Timely Industries (from Summary & Index)
·
Highest
Growth Stocks (from Summary & Index)
·
Portfolios
I-III (from Selection & Opinion)
·
A
few period screen lists (from Selection & Opinion)
Build your Prospective Stocks lists by
applying the filters outlined in the following table.
Guidelines for Refining
Value Line Lists
|
Value
Line List |
Add to Prospective Stocks list if… |
|
|
|
|
Timely
Stocks In Timely Industries and Highest
Growth Stocks |
·
Current
PE < 25; AND ·
Low
end of “Estimated 3-5 Year Price Potential” > 50%; AND ·
High
end of “Estimated 3-5 Year Price Potential” > 110%; AND ·
PEG
Ratio * < 1.50 |
|
Model
Portfolio I |
P/E
< 25 |
|
Model
Portfolio II |
P/E
< 15 |
|
Model
Portfolio III |
·
P/E
< 20; AND ·
Low
end of “Estimated 3-5 Year Price Potential” > 50%; AND ·
High
end of “Estimated 3-5 Year Price Potential” > 110% |
|
30
Largest Market Capitalizations |
P/E
< 20 |
|
Companies
with a Ten Year Record of Increasing Dividends |
Estimated
average annual dividend growth rate for next 5 years > 8% |
|
Growth
Stocks with Moderate Risk |
–
No Filter– |
|
Income
Stocks with Worthwhile Total Return Potential |
–
No Filter– |
|
Low
Risk Stocks fore Worthwhile Total Return |
Total
Return > 15% |
|
Stocks
for Dividend Growth and Low Risk |
Estimated
average annual dividend growth rate for next 5 years > 8% |
|
Stocks
with A++ Financial Strength Ratings |
–
No Filter– |
|
Timely
Growth Stocks |
Projected
(3-5 years) earnings growth rate > 12% |
|
Timely
Stocks with Healthy Price Appreciation Potential |
P/E
< 20 |
|
Timely
Stocks with High Price and Earnings Momentum |
P/E
< 20 |
|
Timely
Stocks with High Return on Equity |
Relative
P/E <1.50 |
|
Timely
Stocks with Low Risk |
–
No Filter– |
Next Step
Eliminate any stock that does not pass the following
tests:
·
Low
end of “Estimated 3-5 Year Price Potential” > 50%
·
High
end of “Estimated 3-5 Year Price Potential” >110%
·
PEG
Ratio * < 1.50
* NOTE: PEG = P/E divided by expected 5-year EPS
growth rate