Here’s my selection of fifty stocks that scored lowest in my screening – for details see below. Briefly, for each stock from NYSE and NASDAQ for areas were assessed: Valuation (V), Profitability (P), Growth (G) and Health (H); then, the overall score (here: Score) was calculated and what you see below is an ordered list of worst scoring stocks.

A listing of top 50 stocks is available there.

Enjoy and don’t forget to leave a comment!

# Ticker Total V P G H Sector Industry
1 VRT 29.86 27.92 42.67 39.05 9.8 Electronic Technology Electronic Production Equipment
2 EXTR 29.85 22.89 38.36 47.05 11.11 Electronic Technology Computer Peripherals
3 CHX 29.84 27.67 27.31 33.5 30.89 Process Industries Chemicals: Specialty
4 LPTH 29.5 23.25 22.83 17.08 54.84 Electronic Technology Electronic Components
5 GHM 29.4 48.36 17.96 17.46 33.82 Producer Manufacturing Industrial Machinery
6 RCMT 29.33 24.02 30.62 24.43 38.24 Industrial Services Engineering & Construction
7 CMCO 29.25 31.38 17.58 40.73 27.31 Producer Manufacturing Trucks/Construction/Farm Machinery
8 USX 29.19 77.47 20.21 12.63 6.43 Transportation Trucking
9 PFGC 28.96 18.52 34.72 39.28 23.33 Distribution Services Food Distributors
10 XPO 28.88 24.19 23.8 56.19 11.35 Transportation Trucking
11 GRPN 28.71 12.33 47.19 49.41 5.92 Commercial Services Advertising/Marketing Services
12 TREX 28.57 0.0 45.24 21.43 47.62 Non-Energy Minerals Forest Products
13 NWSA 28.48 18.89 39.68 26.79 28.57 Consumer Services Publishing: Newspapers
14 MG 28.34 39.32 27.52 33.76 12.75 Industrial Services Engineering & Construction
15 AVTR 28.21 9.3 52.56 39.02 11.96 Process Industries Chemicals: Specialty
16 SND 28.12 66.67 0.0 0.0 45.83 Non-Energy Minerals Construction Materials
17 NI 28.07 25.0 8.33 33.12 45.83 Utilities Gas Distributors
18 GPK 28.0 52.55 23.09 18.19 18.18 Process Industries Containers/Packaging
19 NEE 27.98 3.46 51.22 30.39 26.87 Utilities Electric Utilities
20 CLAR 27.94 18.0 17.58 12.96 63.22 Consumer Durables Recreational Products
21 BBBY 27.92 30.16 13.61 21.04 46.87 Retail Trade Specialty Stores
22 MO 27.64 20.0 55.56 35.0 0.0 Consumer Non-Durables Tobacco
23 CVGW 27.63 18.44 29.2 21.21 41.68 Consumer Non-Durables Food: Specialty/Candy
24 WSC 27.11 17.96 30.3 23.2 36.99 Finance Finance/Rental/Leasing
25 MCO 27.08 33.33 16.67 25.0 33.33 Commercial Services Financial Publishing/Services
26 TPIC 26.42 10.53 36.05 42.59 16.52 Producer Manufacturing Electrical Products
27 PSMT 25.83 40.0 0.0 10.0 53.33 Retail Trade Discount Stores
28 ENR 25.16 28.11 23.39 24.56 24.56 Consumer Non-Durables Household/Personal Care
29 FND 24.65 11.11 33.33 12.5 41.67 Retail Trade Home Improvement Chains
30 CENT 24.3 11.11 44.44 25.0 16.67 Consumer Non-Durables Consumer Sundries
31 IQV 24.25 10.32 28.57 48.57 9.53 Health Services Services to the Health Industry
32 DIS 24.0 7.14 13.33 33.33 42.22 Consumer Services Cable/Satellite TV
33 TSQ 23.91 12.1 29.51 51.14 2.9 Consumer Services Broadcasting
34 HL 23.38 29.74 23.18 20.89 19.7 Non-Energy Minerals Precious Metals
35 SPGI 22.92 16.67 33.33 25.0 16.67 Commercial Services Financial Publishing/Services
36 SRLP 22.69 3.7 45.06 18.0 24.0 Industrial Services Oil & Gas Pipelines
37 SSTI 22.47 4.53 29.0 26.8 29.55 Electronic Technology Aerospace & Defense
38 MNRO 22.31 25.58 19.14 25.62 18.9 Retail Trade Specialty Stores
39 MNTX 21.74 24.37 21.28 12.32 28.98 Producer Manufacturing Trucks/Construction/Farm Machinery
40 PBI 20.84 14.29 38.1 7.14 23.81 Producer Manufacturing Office Equipment/Supplies
41 GT 20.14 55.56 11.11 8.34 5.56 Consumer Durables Automotive Aftermarket
42 GWRS 19.56 6.06 14.39 13.34 44.45 Utilities Water Utilities
43 KSU 19.45 16.67 5.56 33.34 22.22 Transportation Railroads
44 JW.A 19.44 11.11 33.33 25.0 8.33 Consumer Services Publishing: Books/Magazines
45 ARKO 18.92 15.85 2.56 3.85 53.42 Retail Trade Food Retail
46 JW.B 18.75 8.33 33.33 25.0 8.33 Consumer Services Publishing: Books/Magazines
47 JELD 16.47 25.4 9.53 21.43 9.53 Non-Energy Minerals Forest Products
48 SWK 15.27 0.0 33.33 16.66 11.11 Consumer Durables Tools & Hardware
49 M 13.89 35.56 13.33 0.0 6.67 Retail Trade Department Stores
50 CULP 13.89 33.33 0.0 0.0 22.22 Process Industries Textiles

Methodology

For each stock from NASDAQ and NYSE scores are calculated for each of the following areas:

  • Valuation
  • Profitability
  • Growth
  • Health

The scores are calculated using the indicators shown in colored boxes above. For instance, to assess stock’s profitability, Return on Assets (ROA), Return on Equity (ROE) and Net Margin are taken into account. The algorithm looks up the value of ROA in every stock belonging to the same industry and compares it against the analyzed stock, providing a final rank: if there are 20 stocks and 5 of them have higher ROA, then the ROA-associated score is (20-5)/20 * 100 = 75, meaning that the ROA is better than in 75% of stocks. We want ROA to be higher than in the other companies; sometimes, however, we want the indicator’s value to be lower than in peers, as is the case with Price to Book ratio (P/B).

In the next step, the mean score across ROA, ROE and Net Margin is calculated. Similar calculations are done for stock’s Valuation, Growth and Health. The algorithm starts with Valuation score, then it proceeds with Profitability, Growth and Health scores. Finally, the mean value across all four areas of interest are calculated.

 

Disclaimers

  • What you see here is my personal opinion and should not be treated as an investing advice
  • I’m not an expert stock analyst nor financial advisor

 

Michał, the Investing Scientist.

 

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