In today’s Sunday Screener, we are following Distressed Investing editor Marty Fridson’s proprietary method for picking stocks that outperform the market.
An important tool in our analytical toolbox at Porter & Co. is our stock screens, in which we apply a list of criteria – relating to different financial, accounting, and performance parameters – to sift through the 3,000+ publicly traded stocks on U.S. markets. That’s how we’re able to identify the tiny fraction of the universe of U.S.-listed stocks that offer the best opportunities for making money.
Most people know Marty Fridson as the distressed-bond expert. He’s regarded by Investor’s Digest as “the most well-known figure in the high-yield world.”
But Marty’s investment prowess doesn’t stop at bonds. He also is a fantastic stock picker, as evidenced by the performance of the companies whose shares Marty has recommended in Distressed Investing.
“Marty Fridson’s Stock Screen” is based on Marty’s extremely effective method for picking outperforming stocks.
In 2023, Marty published The Little Book Of Picking Top Stocks, in which he focuses on analyzing the best-performing stocks in the S&P 500 in prior years, and on the factors that led to their market-beating returns.
To see the criteria used to create “Marty Fridson’s Stock Screen,” go here.
As of the close of trading on Thursday, April 16, the following five stocks met these criteria:
Highs And Lows
Each week, we also monitor any stocks in the market making 52-week highs. We do this because any stock on its way to generating 2x, 3x, or 10x returns will spend a lot of time making new 52-week highs along the way. Thus, the 52-week-high list provides an opportunity to flag these potential high performers before they really break out, with a particular emphasis on lower-profile, less widely-followed stocks that might have otherwise gone unnoticed.
Notable stocks making a 52-week high this week:
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Micron Technology (MU)
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Advanced Micro Devices (AMD)
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Intel (INTC)
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GE Vernova (GEV)
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Linde (LIN)
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Citigroup (C)
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Arista Networks (ANET)
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Analog Devices (ADI)
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Welltower (WELL)
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Interactive Brokers Group (IBKR)
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Prologis (PLD)
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Dell Technologies (DELL)
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Western Digital (WDC)
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Seagate Technology Holdings (STX)
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Equinix (EQIX)
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Freeport-McMoRan (FCX)
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Marriott International (MAR)
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The Bank of New York Mellon (BK)
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Quanta Services (PWR)
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Cummins (CMI)
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CSX (CSX)
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Hilton Worldwide (HLT)
We also monitor stocks on the 52-week-low list. In many cases, the names on this list are there for good reason – the market is often correctly pricing in weak fundamentals. However, once in a while, a great business with excellent long-term prospects finds itself on this list due to a temporary setback. This can create the rare opportunity to buy top-shelf merchandise at bargain-basement prices.
Notable stocks making a 52-week low last week:
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Abbott Laboratories (ABT)
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Mid-America Apartment Communities (MAA)
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Hormel Foods (HRL)
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Texas Roadhouse (TXRH)
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Pilgrim’s Pride (PPC)
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The Marzetti Company (MZTI)
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Addus HomeCare (ADUS)
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Dream Finders Homes (DFH)
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Gibraltar Industries (ROCK)
Porter & Co.
Stevenson, Maryland