Piotroski and Book/Market-Based Investing

 In a recent article for Nasdaq, Validea CEO John Reese shares insights on quantitative investing and outlines the approach of Stanford University accounting professor Joesph Piotroski (a market guru that inspired one of the stock screening models Reese created for Validea). Piotroski, writes Reese, was a trailblazer in the investment approach, turning heads on Wall Street in 2000 with his research on unpopular companies with high book-market ratios (defined as total assets minus total liabilities… Read More

Five Stocks that Satisfy Piotroski’s Book/Market Model

The concept of quantitative investing, while gaining a lot of limelight these days, is not a new concept, writes Validea CEO John Reese in a recent Nasdaq article. Reese offers a profile of investing guru Joesph Piotroski, who authored a paper on the subject in 2000 which, writes Reese, “took Wall Street by surprise.” Reese describes Piotroski’s philosophy which focused on the book-market value of stocks as well as other metrics that enabled him to differentiate… Read More

Guru Screen of the Week: Looking for high Book-to-Market Stocks with Sound Fundamentals

This week, we bring you the Stock Screen of the week from Validea. On Validea.com, you can screen for stocks using the site’s Guru Stock Screener, which scores stocks based on the fundamental stock selection criteria of legendary investors. The firm’s models are based on investing legends such as Warren Buffett, Peter Lynch, Benjamin Graham, Kenneth Fisher, Martin Zweig, David Dreman, Joel Greenblatt and others. This week’s screen is based on Validea’s Joseph Piotroski-based strategy, which… Read More

The Piotroski Model: Little-Known Strategist, Big-Time Rewards

Every other issue of The Validea Hot List newsletter examines in detail one of John Reese’s computerized Guru Strategies. This latest issue looks at the Joseph Piotroski-inspired strategy. Below is an excerpt from the newsletter, along with several top-scoring stock ideas from the Piotroski-based investment strategy. Taken from the January 3, 2014 issue of The Validea Hot List Guru Spotlight: Joseph Piotroski If you haven’t heard of Joseph Piotroski, you’re not alone. He’s probably the least well-known… Read More

Low-P/E Stocks That Pass An Accountant’s Tests

In his latest column for Forbes.com, Validea CEO John Reese takes a look at how to go beyond the P/E ratio when looking for cheap stocks. “P/E ratios are useful tool, but they are by no means the be-all and end-all when it comes to gauging the valuation and attractiveness of a stock. In fact, no single metric is,” Reese writes. “As Forbes’ own Kenneth Fisher has said, there are no silver bullets in the… Read More

Piotroski-Style Bargains at Home, and North of the Border

In a “Number Cruncher” column for Canada’s Globe and Mail, Ian McGugan takes a look at some overlooked bargain-priced stocks using Validea.com’s Joseph Piotroski-inspired strategy.  “Piotroski, a professor at Stanford University, has discovered that applying a battery of accounting tests to a portfolio of value stocks can improve returns by eliminating ones that are financially too weak to recover and spotlighting ones with improving fundamentals,” McGugan writes, explaining that Validea’s Piotroski-inspired model targets stocks in… Read More

The Little-Known Guru Who Beats The Market

Every other issue of The Validea Hot List newsletter examines in detail one of John Reese’s computerized Guru Strategies. This latest issue looks at the Joseph Piotroski-inspired strategy, which has averaged annual returns of 6.0% since its February 2004 inception vs. 1.8% for the S&P 500. Below is an excerpt from the newsletter, along with several top-scoring stock ideas from the Piotroski-based investment strategy. Taken from the February 3, 2012 issue of The Validea Hot List Guru… Read More