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Top 10 Quality, Value & Momentum Quant Stocks for December Revealed Here
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The 10 stocks featured in this article are featured from Fintel’s QVM (Quality, Value & Momentum) stock screen this week. This screen finds companies that rank highest on Quality, Value, and Momentum. To do this, we use Fintel’s QVM Score factor, which is a factor that combines the three Fintel factors Quality Score, Value Score, and Momentum Score into a single score. The score ranges from zero to 100.
The quality score focuses on a stock’s cash flow generating abilities from current operations.
The value score ranks companies based on their relative valuation to the market.
The momentum score factors the share price performance over the last 6 months.
This quant screen currently consists of 13,923 constituents and only includes companies that have a score above 50.
American firearm manufacturer Sturm Ruger (US:RGR) made the top 10 with a QVM score of 92.29.RGR has a $925 million market cap and is trading on an 8.67x PE ratio and an attractive 4.62% annualized dividend yield. RGR has traded -24% lower over 2022 fuelled with stronger selling after weak results in August spooked investors. Most recently in November RGR announced a $5 special dividend.
Semiconductor manufacturer Kulicke and Soffa Industries (US:KLIC) makes the list with a 92.49 QVM score. The $2.70 billion market cap stock has a PE ratio of 6.65x and an annualized dividend yield of 1.61%. KLIC has traded -27.9% lower over 2022 with momentum showing a change of pace since early October with the stock recovering 25% of losses. In November, KLIC reported Q4 EPS/revenue ahead of analyst forecasts and increased the quarterly dividend by ~12% to 19 cents.
Healthcare sector safety needle manufacturer Retractable Technologies (US:RVP) features on the list with a QVM score of 92.90. The stock has fallen -73.6% over 2022, cooling off significant highs reached during the pandemic which saw the stock skyrocket towards $20. RVP now has a market cap of only $63 million with a PE ratio of 2.16x. During November, the RVP reported Q3 revenues of $23.1 million and EPS of 16 cents, which both declined when compared to the prior year’s quarter.
Steelmaker and scrap recycler Nucor (US:NUE) is on the list with a QVM score of 93.13. The $34 billion market cap has built on share price gains from the pandemic, rising a further 18.2% over 2022. NUE is trading on a PE ratio of 4.16x and currently has an annualized dividend yield of 1.53%. In November, the company told investors it plans to expand its Towers and Structures business while providing fourth quarter guidance and also increasing the quarterly dividend by 2%.
Metal and electrical product manufacturer Atkore International Group (US:ATKR) has a QVM score of 93.64. The stock is trading in positive territory over 2022 with a 33.7% recovery over the past 6 months. ATKR has a market cap of 4.66 billion and is trading on a 5.76x PE ratio. Institution B Riley Securities initiated coverage on the stock in December with a ‘buy’ rating and a $146 target price.
United States Steel (US:X) is fifth on the list with a QVM score of 93.83. X is a US steel producer headquartered in Pittsburgh, Pennsylvania. The stock has a market cap of $5.86 billion and is currently trading on a cheap PE ratio of 2.08x with an annualized dividend yield of 0.80%.
United States Steel has traded up more than 50% towards $40 per share and down -30% falling below $17 experiencing volatile swings over 2022. On a six-month view, X has risen 27.6% as momentum has strengthened over the second half.
In December US Steel provided fourth quarter profit guidance where management told investors they expect to report underlying EPS of 58 to 63 cents with the mid-point of guidance ahead of consensus forecasts.
Encore Wire (US:WIRE) is fourth on the list with a QVM score of 94.25. Encore is a leading manufacturer of copper and aluminium wires. The stock experienced strong share price gains over the pandemic, more than doubling from $50.
The WIRE share price is flat over 2022 but has recovered from early year losses with the stock up 30% over the last 6 months. The $2.5 billion market cap stock trades on a 3.93x PE ratio and has a current dividend yield of 0.057%.
Alpha Metallurgical Resources (US:AMR) makes the top three with a QVM score of 94.87. AMR is a Tennessee-based mining company focused on coal.
AMR has experienced a strong year in 2022, rising 130.7% on the back of skyrocketing coal prices as a result of the Ukraine war. AMR has a $2.32 billion market cap and trades on a 1.86x PE ratio with a 1.15% annualized dividend yield.
During late November, the company announced production guidance for FY23. AMR expects to ship between 16.7 to 18.4 million tonnes of coal and intends to spend $250 to $280 million on capital expenditures. Coal prices are expected to maintain high in the short to medium-term as the northern hemisphere grapples with winter.
Boise Cascade (US:BCC) is second on the list with a QVM score of 94.92. Boise Cascade is a wood products manufacturer and wholesale distributor of building materials headquartered in Idaho.
After making strong gains during the pandemic, BCC has traded flat over 2022. Over the last 6 months, the stock has experienced solid momentum, rising 11.2%. BCC has a $2.8 billion market cap and trades on a 3.10x PE ratio. The stock has an annual dividend yield of 0.85%.
In December, BCC announced that they had acquired two new parcels of land to build more distribution centers. One will be the third center in Texas and the firm’s first distribution facility in the state of South Carolina.
Louisiana-Pacific (US:LPX) tops the list with a QVM score of 96.29. Louisiana-Pacific is an American building materials manufacturer headquartered in Tennessee.
LPX has held on to the majority of the significant share price gains made during the pandemic of more than 100% but has retreated -20.7% over 2022 with broader US markets. On a 6 month momentum view, the stock is up 13%.
LPX has a 4.43 billion market cap and trades on a 3.90x PE ratio which contributes to high Quality and Value metrics. The company also has a current dividend yield of 1.42% per annum.
At the most recent Q3 result, LPX told investors that sales declined -16.3% over the year to $852 million with inflationary pressures impacting the bottom line further. Following the print, Berkshire Hathaway during the most recent 13F filing disclosed an initial 5.8 million share position in LPX.
This article originally appeared on Fintel
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