Does Summit select stocks for its clients portfolios?
Summit is a financial planning and investment management firm. As such we focus on sophisticated financial planning and estate strategies and picking world-class stock pickers (managers) to insure clients receive the absolute best in every area of their financial affairs. However, on occasion we will select stocks for portfolios. When we do this we use quantitative analysis. We screen for companies whose price-to-earnings or price-to-cash flow represents a discount to their expected earnings growth rate. In addition, Summit examines the trends in positive earnings per share for companies, the magnitude of recent changes in the current fiscal year, and the next fiscal year consensus earnings estimates. Also, we evaluate the extent to which all brokerage analysts are revising earnings per share estimates in the same direction. Our belief that these factors result in higher positive returns, is supported by historical academic research.
