Based on extensive backtesting, these are the best-performing Sabrient filters, by market cap, for the month of December 2005. These filters substantially outperformed their index benchmarks during the past three months.
LARGE-CAPS
GARP Filter
The GARP filter is a proxy for growth at a reasonable price. A high score indicates a reasonable price for the growth potential; a low score suggests the growth potential may be overpriced.
Financial Quality Filter
The Financial Quality Filter assesses a company's financial health, emphasizing cash flow, along with projections for bottom-line and recent top-line growth.
Primary Value Filter
The Primary Value Filter measures key growth and valuation ratios, both long-term and short-term.
MID-CAPS
Primary Value Filter
The Primary Value Filter measures key growth and valuation ratios, both long-term and short-term.
Momentum Dymanics Filter
The Momentum Dynamics Filter measures EPS, price and group momentum over multiple time periods. In addition, this key momentum filter measures the flow of money into a stock and the change in that flow during the most recent 90 days.
Momentum Rank Change Filter
The Momentum Rank Change Filter measures short-term changes among key momentum measures, including earnings, price and group momentum.
SMALL-CAPS
Group Momentum Filter
The Group Momentum Filter measures industry group performance in multiple periods with an emphasis on the last three months. It serves as a proxy for broader market sentiment toward a group or niche.
Price Trend Filter
The Price Trend Filter uses a sophisticated statistical analysis to evaluate a stock's current price with respect to its long-term trend and to compare the result to the stock's core growth characteristics. A high score means the stock is below its long-term trend, especially in light of its earnings performance. A low score means the stock is above its long-term trend and may likely fall back to or below the mean.
Cash Flow vs. Valuation Filter
The Cash Flow vs. Valuation Filter considers the absolute change of earnings growth, its price-to-earnings valuation, and strength of free cash flow.
MICRO-CAPS
Earnings Momentum Filter
The Earnings Momentum Filter scores stocks for rapid acceleration in earnings momentum over the past four quarters.
Triple Rank Filter
The Triple Rank Filter considers earnings momentum, price momentum and group momentum, along with a factor that measures the flow of money into a stock.
Price Trend Filter
The Price Trend Filter uses a sophisticated statistical analysis to evaluate a stock's current price with respect to its long-term trend and to compare the result to the stock's core growth characteristics. A high score means the stock is below its long-term trend, especially in light of its earnings performance. A low score means the stock is above its long-term trend and may likely fall back to or below the mean.
