How does Financial Planning Consultants, Inc. select stocks for its clients’ portfolios?
Financial Planning Consultants, Inc. (FPC) uses quantitative and qualitative analysis to construct individual equity portfolios. We screen for companies whose price-to-earnings or price-to-cash flow represents a discount to their expected earnings growth rate. In addition, FPC 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 positive returns more often, is supported by historical academic research.
