Future Blue Chips
An Overview of the Future Blue Chips Investment Strategy
Location of Screen: The screen was originally discussed in an MSN article by Harry Domash and is run on Sum of Some using the MSN screening tool
Updated: Continually, based on current market data
Inception: Posted in February 2007
Created By: Harry Domash
Harry Domash:
- Author at MSN and his two websites, Dividend Detective and Winning Investing
- Frequent speaker at the American Association of Individual Investors’ meetings and conducts fundamental analysis workshops
- Author of the books Fire Your Stock Analyst: Analyzing Stocks On Your Own and The Everything Online Investing Book
Stock Screen Parameters for the Future Blue Chips Screen
The below bullet points use technical parameters that can automatically be screened. These parameters are run by Sum of Some using the MSN screening tool. The text in italics explains how the parameter was defined in the screener.
1) Big Companies: Find companies with large market capitalizations
Parameter: Market Capitalization >= $50 billion
2) S&P: Let the S&P analysts decide the company is worth inclusion into the S&P
Parameter: S&P Index Membership = S&P 500
3) Institutional Investors: Find companies that institutional owners want to have in their portfolio
Parameter: Institutional Ownership > 60%
4) Analysts: Pick companies that the analysts like
Parameter: Mean Recommendation >= Moderate Buy
5) Earnings Growth: Find companies which have solid growth expecatations. Since this screen is looking for blue chips, the growth may be a bit lower than smaller companies
Parameter: EPS Growth Next 5 Years >= 10
6) Profitable: Find companies that are able to grow from their investments rather than through borrowing or selling stock
Parameter: ROE: 5-Year Average >= 15
7) Debt: Find companies that are in less debt than others in the industry
Parameter: Debt to Equity Ratio <= Industry Average Debt to Equity Ratio
8) Revenue: Find companies that are increasing profits through revenue growth
Parameter: 5-Year Revenue Growth >= 5
9) Trend: Find companies which are in a long-term upward trend
Parameter: Last Price >= 200-Day Moving Average
