Results: Picking companies that are profitable

There are 2,130 stocks with positive Net Income, vs. ~3,100 stocks that passed the same data validation last week without the Net Income test.

The expected return of these stocks, all held in an equal capitalization portfolio, is 19.71% over the next 12 months, excluding dividends.

The stocks chosen in the best 10 portfolios are similar to the stocks picked the week before.  However, there are many fewer leptokurtic stocks with low variance.  There are 15 of those stocks identified this week vs. more than 40 last week.  It seems that now we have an interesting list for options trading.

Excerpt from our model run last night:

• The stocks that are leptokurtic and low variance: 
• This is the minimum Leptokurtic score and variance of all stocks:  4.5 0.0001717
• ['ABBV', 'AMGN', 'APD', 'LMT', 'MNR', 'NOC', 'PNM', 'ROP', 'SPH', 'STN', 'T', 'TRI', 'TSN', 'VZ', 'WMT'] 15