Lemons or Lemonade? - Investment Ideas

By Kip Robbins,

Shutterstock photo

the tale of two lemonade entrepreneurs

Accrual Anomaly Dr. Richard Sloan the market rewards cash inflows and higher-quality earnings as opposed to cash outflows and low-quality earnings.

  • First, start with only US common stocks .
  • Next, create a liquid (no pun intended!) investible set of the stocks with the largest 3000 market values and average daily trading volume greater than or equal to to 100,000 shares (if there's not enough liquidity, it'll be hard for you to trade it).
  • Add another filter by selecting those stocks with a Zacks Rank less than or equal to 3 . (Let's be clever and avoid the poorly-rated stocks.)
  • Select the top 10 stocks with the lowest accruals (net income - cash flows) / total assets






The Handbook of Equity Market Anomalies hema.zacks.com

ACXIOM CORP ( ACXM ): Free Stock Analysis Report
BOSTON SCIENTIF ( BSX ): Free Stock Analysis Report
MYERS INDS ( MYE ): Free Stock Analysis Report
RENT-A-CENTER ( RCII ): Free Stock Analysis Report
TNS INC ( TNS ): Free Stock Analysis Report
Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Investing Ideas , Stocks
Referenced Stocks: ACXM , BSX , MYE , RCII , TNS

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