This week we use the Magic Formula, developed and written about by Joel Greenblatt in his book, The Little Book that Beats the Market.
X Pass the Earning Yield Model with at least 90% (stocks are percentile ranked based on Earnings Yield and ROTC and then sorted based on the combined rank)
X Long-Term EPS Growth greater than 15%
X Trailing PE Ratio below 10
X Percent Below 52 Week High at least 20%
X Current Ratio greater than 2.0
Passing Names: BKE | BUCKLE INC, MBUU | MALIBU BOATS INC, TGLS | TECNOGLASS INC, WIRE | ENCORE WIRE CORP, UONEK | URBAN ONE INC, RGP | RESOURCES CONNECTION INC, STLD | STEEL DYNAMICS INC, DDS | DILLARD’S INC