Harry Domash's Winning Investing

Finding Market Beating Stocks

Do you want to find stocks that could potentially beat the market over the next two years?

While in the stock market, nothing works all of the time, I’ve found four factors that outperforming stocks often have in common.

So, in theory, a portfolio of stocks containing all four factors should beat the market.

With that in mind, today I’m going to describe a stock screen that you could use to indentify such stocks. It’s untested, so don’t put serious money there yet. Here are the details.

Use Finviz Screener

As usual, I’ll use the free and user friendly Finviz stock screening program to find the stocks.

Start from the Finviz homepage (finviz.com) by selecting Screener. Finviz uses “filters” to search for stocks meeting your selection criteria. Select “All” on the Filters bar to see all of the available filters. Here’s how to set up the screen.


Already profitable companies are your best bets for future share price growth. Finviz offers a variety of different profitability gauges. I’ve done a lot of testing using return on equity, which compares net income to shareholders equity. So select the “Return on Equity” filter and specify “Over +15%” to limit your list to highly profitable stocks.

Earnings Growth Forecasts

I’ve found that stock share prices track annual per-share earnings (EPS) closer than any other single factor. Analyst’s forecasts are the only tool available to us for predicting future EPS growth. So, select both the “EPS Growth This Year” and “EPS Growth Next Year” filters and specify “Over 30%,” which is the highest available choice, for each.

High Institutional Ownership

Institutional investors are organizations such as mutual funds, hedge funds, endowments, etc. I’ve found that stocks heavily owned by these savvy investors typically outperform stocks with low institutional ownership. Specify “Over 90%” using the “Institutional Ownership” to limit your list to stocks in-favor with these wired-investors.

High Trading Price

Contrary to what many market players seem to believe, higher priced stocks typically outperform “cheap stocks.” So, using the “Price” filter, specify “Over $50” to rule out cheap stocks.

Five Candidates

My screen turned up five stocks when I ran it last week.

American International Group (AIG): offers a variety of insurance products internationally. Expected 2023 year-over-year EPS growth 40%.  

CONSOL Energy (CEIX): produces and exports bituminous coal in the U.S. Expected 2023 EPS growth 157%. 

Darling Ingredients (DAR): Produces products from waste recycling.  Expected 2023 EPS growth 31%. 

Expedia Group (EXPE): online travel agencies. Expected 2023 EPS growth 31%.

Incyte Corp. (INCY): biopharmaceuticals. Expected 2323 EPS growth 46%.

These are my ideas, but do your own due diligence. The more you know about your stocks, the better your results.

published 1/19/23  

Questions or comments about this site: click here

Winning Investing

199 Quail Run Road  Aptos, CA 95003

(Aptos is 'the beach' for Silicon Valley)

(800) 276-7721    (831) 685-1932   

 Popular Dividend Detective Links
Free Cash Flow: Best & Worst Monthly Dividend Stocks
 Preferred Stocks Best Closed-End Funds

About Harry Domash

Click here to read a recent interview.