What are we looking for?
North American companies that rank in the top 15 per cent across three of Thomson Reuters' proprietary StarMine models. These models look to identify opportunity based on each company's respective attributes and can be incorporated into our screening tool.
The screen
The StarMine quantitative models are grounded in fundamental economic concepts and backed by rigorous research and testing. This screen will take a look at companies that score in the top regional percentiles across three of the most commonly used StarMine models:
- the Analyst Revision model ranks stocks according to changes in analyst sentiment
- the Value-Momentum model interprets and ranks recent valuation and momentum characteristics of the stocks
- the Earnings Quality model focuses on the sustainability of a company’s earnings.
The screen is limited to companies that score in the top 15 per cent for each model, and is limited to companies headquartered in Canada and the United States.
More about Thomson Reuters
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What did we find?
The screen yielded 10 results ranging across multiple sectors and varying significantly from large to microcapitalization companies.
Gilead Sciences Inc. has impressive scores across all three models and is one of the largest biopharmaceutical companies in the market. Taking a closer look at the company's Analyst Revision score, Gilead has seen positive revisions from its coverage analysts across all of its major metrics, an indication of strong future performance.
Of the three Canadian companies listed in the results, Supremex Inc., leads the way with exceptional StarMine rankings among its North American peer group. Year-to-date, it has realized a 53-per-cent appreciation in stock value and has steadily been able to increase its gross dividend due to increased earnings sustainability, a feat not many microcap companies can accomplish.
Please e-mail me at ryan.gottschalk@thomsonreuters.com for more detailed information or questions regarding the Starmine models.
This commentary does not provide individualized advice or recommendations for any specific subscriber or portfolio. Investors should conduct further research before investing.
Ryan Gottschalk works in the financial and risk unit of Thomson Reuters and specializes in asset management.