Value Investing News

Weekly roundup of stocks moving in and out of the Magic Formula Investing screen.

Weekly roundup of stocks moving in and out of the Magic Formula Investing screen.

Cardinal Health is one of the "big 3" pharmaceutical distributors. With a stable, recession-proof business and limited competition, along with a solid dividend with room for growth, Cardinal is a good, conservative Magic Formula stock.

Weekly roundup of stocks moving in and out of Joel Greenblatt's Magic Formula Investing screen.

Weekly roundup of stocks moving in and out of Joel Greenblatt's Magic Formula Investing screen.

Weekly roundup of stocks moving in and out of the Magic Formula Investing screen.

McKesson enjoys a tight oligarchy in its pharmaceutical distribution business, and a highly profitable healthcare software unit adds both margin and growth advantages over competitors. A good Magic Formula buy.

Most investors believe that successful dividend investing consists of identifying the highest yielding stocks in the market and then generating double digit returns on investment each year. The problem with this strategy it that it often overlooks the fact that such dividend yields are most often unsustainable in the long run.

Looking for the perfect dividend stock? In an utopian world, the perfect dividend stock would be one that is both high-yield and provide a high dividend growth rate. Its share price would appreciate with its increasing dividend. All of this would be driven by increasing earnings and cash flow.

MagicDiligence puts 3 competitors, all Magic Formula stocks, up against each other in this face-off of pharmaceutical distribution companies.

Magic Formula stocks have performed well over the past year, and history tells us that winners do indeed keep winning. What MFI stocks have strong momentum to continue their gains going forward?

People want to feel secure. National security and the military provide assurance that a country’s citizens will be protected. Governments partner with companies like Northrop Grumman Corp (NOC) to provide the best defense products at the lowest price.

Putting it all together, here are the top 20 Magic Formula stocks ranked by a combination of price/sales, price/book, dividend yield, and relative strength. All of these measures have been shown to lead to outperforming stock picks.

Several studies have shown that low price-to-sales ratio, not price-to-earnings or price-to-book, has been the most reliable indicator of outperforming value stocks. This article shows the top 20 current Magic Formula stocks with the lowest price-to-sales ratios.