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| Criteria - Zweig |
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Zweig made a name for himself with the Zweig Forecast newsletter. The Zweig criteria can be found in long form in Winning on Wall Street by Martin Zweig . These criteria look for repeated, solid earnings growth, supported by consistently strong sales growth. At the bottom of this page are links to MSN and Yahoo screens based on these parameters.
Please note, this page is supplied for informative purposes only. U.S. Stock Screens has no affiliation with Martin Zweig or the Zweig Forecast. U.S. Stock Screens is neither sponsored nor endorsed by Martin Zweig or the Zweig Forecast. |
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| Criteria description: |
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Quarterly earnings should be positive and increasing faster than they were a year ago, faster than they were in the last three quarters, and faster than they were in the last years. This criterion is looking for some momentum in EPS growth. |
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Annual earnings should be up for the last five years at least, if not for a longer period. In other words, growth should be consistent and consistently strong. |
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Sales should be increasing at least as fast as earnings, since earnings growth can't be sustained long-term without underlying revenue growth. Both quarter-over-quarter and year-over-year sales growth should be as strong as earnings growth. |
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Price-to-earnings ratio of shares should be a minimum of 5 — to screen out troubled companies — and a maxiumum of 1.5 times the median market P/E. Using the S&P 500 average of 25.4, the maximum allowed P/E would be 38.1. This puts a value spin on what could otherwise be considered a growth screen. |
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For any low-P/E stock, the balance sheet should be in order. |
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The stock should be outperforming the median of the market. For example, look at price-to-50-day-moving-average and price-to-200-day-moving-average ratios. Look for relative strength above market average. "Market average" can be the mean or median of one of the major indexes (S&P 500, Nasdaq, or DJIA). |
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Screen criteria:
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Yahoo:
Earnings Growth Past 5 Years >= 14
Earnings Growth Est This Year >= 14
Sales Growth Est Next Quarter >= 14
P/E Between 8 And 32
Forward P/E Between 8 And 22
PEG Ratio Betwen 0.5 And 2.1
Total Debt/Equity <= 0.83
Long Term Debt/Equity <= 0.81
Price Book Ratio Between 1.45 And 7.7
Current Price Less than 52 Wk High(%) <= 22
Current Price Greater than 52 Wk Low(%) >= 22
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MSN:
Annual EPS Growth Rate >= 12.5
EPS Growth Year vs Year >= Annual EPS Growth Rate
EPS Growth Year vs Year >= S&P 500 Average EPS Growth Yr. vs Yr.
EPS Growth Qtr vs Qtr >= EPS Growth Year vs Year
5-Year Revenue Growth >= 12.5
Rev Growth Year vs Year >= 5-Year Revenue Growth
Rev Growth Qtr vs Qtr >= Rev Growth Year vs Year
P/E Ratio: Current >= 5
P/E Ratio: Current <= 1.5 * S&P 500 Average P/E Ratio: Current
Debt to Equity Ratio Decreased Since
Debt to Equity Ratio <= 1.1 * Industry Average Debt to Equity Ratio
3-Month Relative Strength >= 51
6-Month Relative Strength >= 51
12-Month Relative Strength >= 51
Last Price >= 50-Day Moving Average
Last Price >= 200-Day Moving Average |
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| Online Screening Tool Links |
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Zweig interpretation using the Yahoo! Finance Screener (requires Java)
Zweig interpretation using the MSN Money Deluxe Screener (requires ActiveX) |
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