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What is the Keystone screen. How does it work?

Keystone screen
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What is the Keystone screen. How does it work?

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The Keystone screen was developed and tested by Robert Sheard when he was the official Foolish Workshop guru. It starts with U.S. based stocks ranked 1 or 2 for Timeliness by Value Line. The 30 largest companies by market cap are sorted by 26-week total return, and the top 5 or 10 are purchased. The screen was tested with a one year holding period. Another variation is Keystone-EPS. It uses the top 10 Keystone stocks and does a final sort by a combination of relative strength and recent EPS growth. This screen, which was tested with a one-year holding period, improves on the performance of the traditional Keystone screen.

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