With the pace of new COVID-19 cases slowing, many investors expect economic growth to accelerate over the course of 2021. John Buckingham, editor of the Prudent Speculator newsletter, has provided a custom screen of 25 stocks that meet the following criteria:
Buckingham and his team then consider qualitative factors, such as brand positioning, to narrow their list to a group of about 120 stocks they recommend across five strategies covered in the newsletter. In the chart above, the value and growth groups are as defined by criteria developed by Eugene Fama and Kenneth French. NBER stands for the National Bureau of Economic Research, a research institute that defines when recessions occur.
Getting back to Cohu and Kulicke & Soffa Industries — two growth stocks that made the list — Buckingham said shares of most companies involved with semiconductor manufacturing had risen because of elevated demand.