Based on extensive backtesting, these are the best-performing Sabrient filters, by market cap, for the month of May 2006. These filters substantially outperformed their index benchmarks during the past three months and indicate what the market is rewarding in June 2006.

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.

Composite Growth Filter
The Composite Growth Filter includes long-term and short-term factors related to earnings, cash flow and revenue growth.

Momentum Rank Change Filter
The Momentum Rank Change Filter measures short-term changes among key momentum measures, including earnings, price and group momentum.

MID-CAPS  

Composite Growth Filter
The Composite Growth Filter includes long-term and short-term factors related to earnings, cash flow and revenue growth.

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.

Cash Flow vs. EPS Filter
The Cash Flow vs. EPS Filter measures long-term cash flow and free cash flow growth against long-term revenue growth and earnings consistency.

SMALL-CAPS  

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.

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.

Valuation Ratios Filter
The Valuation Ratios Filter is a proxy for fundamental valuation, bestowing high Sabrient scores on stocks with low, and therefore favorable, valuation ratios such as price-to-earnings and price-to-sales.

MICRO-CAPS  

Earnings Momentum 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.

Consistency Filter
The Consistency Filter measures various earnings trends, along with short-term revenue growth. High scores are given to stocks that exhhibit a smooth expansion in earnings and notable short-term revenue growth.

Valuation Ratios Filter
The Valuation Ratios Filter is a proxy for fundamental valuation, bestowing high Sabrient scores on stocks with low, and therefore favorable, valuation ratios such as price-to-earnings and price-to-sales.