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Backtested Scanners

Joel Greenblatt: Magic Formula

Read the study: The Magic Formula, Retested: 14.48% a Year Since 2000 — Behind the Market Since 2010

31 Hits · last calculated September 18, 2026 Source: fundamental data & SEC filings (annual and quarterly reports, 10-K/10-Q) · Market filter active: the list shows 31 hits from US

Methodology & criteria

The simplified screener version of Greenblatt's "The Little Book That Beats the Market": above-average companies (return on capital ≥ 25%, approximated as ROE × equity ratio) at below-average prices (positive P/E, at least 5 to filter out data outliers). Financials and utilities are excluded as in the original, minimum market cap $50 million. We back-tested the formula for you from late 1999 to July 2026: the full original ranking of earnings yield and return on capital returned 14.48% a year against 8.28% for the S&P 500 — the screener version this scanner implements came in at 10.07% a year. Honest caveat: since 2010 the formula has trailed the S&P 500 by roughly 3.8 percentage points a year on average. Source: fundamental data.

No global trading filters — this strategy checks the entire stock universe purely against its own criteria (mega caps over $50B included).

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Terms in This Scanner Explained

(15)
ADR (Average Daily Range)
The average daily swing of a stock in percent - measured over 10 or 30 trading days (columns "ADR 10D/30D"). An ADR of 5% means: on a normal day the gap between the intraday low and high runs about 5%. Traders look for movement - that is why stocks with an ADR under 1% are filtered out globally. Scanners that run without the global filters still include them; that is noted below their hit list. Not to be confused with ADR meaning "American Depositary Receipt" (a US certificate for foreign shares) - here ADR always means the daily swing.
AI Classification
Our company-by-company assessment of the AI boom based on SEC filings (the last four quarterly 10-Q reports and two annual 10-K reports): "Sells AI" (AI is a revenue source), "Threatened" (AI is a concrete business risk), "Uses AI" (operational use), or "Neutral" (no material AI exposure). Every classification requires at least two direct quote citations - otherwise the column shows "-". Not a quality judgment or a buy recommendation; the full file is on the stock page, methodology at /stocks/ai-rating-methodology.
Analysis (Full Company Analysis)
If the Analysis column shows "Read," there is an in-depth TickerGuard company analysis for this stock: business model, scanner findings, quarterly results, evidence from SEC filings, plus opportunities and risks. One click opens it directly.
Avg/Yr 3Y (Average Annual Return)
The stock's average annual return over the past 3 years. Shows at a glance whether a stock delivers over the long run or just had a short hot streak.
Earnings Date
The date of the next quarterly earnings report. Price gaps in either direction are common around this date - that is why we color it red when it is 7 days away or less, and yellow when it is 14 days away or less: elevated risk for fresh positions.
EPS (Earnings per Share)
Quarterly earnings divided by the number of shares outstanding. The most important growth metric: if EPS rises strongly over several quarters, the company is earning more money per share.
Free Cash Flow (FCF)
Operating cash flow minus capital expenditures - the money left over for everything else (debt paydown, acquisitions, or buybacks). Consistently positive free cash flow is one of the most honest signs of a healthy business model.
Funda Rating (Fundamental Rating A+ to F)
Our proprietary fundamental rating from 0 to 100 points with a school-grade rank from A+ to F. 50 points is the average across the universe, 100 the best possible score. Every stock is scored against all others by percentile: growth in earnings and revenue, earnings surprises, analyst estimates, and quality criteria such as margins, cash flow, and balance-sheet strength. Grades: A+ from 95, A from 75, B from 55, C from 45, D from 25, E from 5, F below — A/A+ are the fundamentally strongest stocks in the universe.
Market Capitalization (Mkt Cap)
The market value of the company: share price x total shares outstanding, shown here in billions of dollars. Micro caps (< $0.3B) are small and volatile, mega caps (> $200B) are heavyweights. Our scanner universe is deliberately capped at $50B - we look for stocks with room to run. The cap does not apply to scanners that run without the global filters; that is noted below their hit list.
Net Margin
How much of revenue is left as profit? Net income divided by revenue, in percent. A 20% margin means: out of every dollar of revenue, 20 cents is left as profit. Rising margins are a strong quality signal.
Operating Cash Flow (OCF)
The cash that actually flows into the company from day-to-day operations - without accounting effects such as depreciation. A company can report book profits while still burning cash; operating cash flow reveals that.
Piotroski F-Score
A balance-sheet health check developed by Joseph Piotroski: 9 yes/no criteria covering earnings, cash flow, leverage, and efficiency produce a score from 0 to 9. Scores of 7 or higher are considered financially very solid, scores under 3 a warning sign.
ROE (Return on Equity)
Profit divided by equity: how much return does the company generate on its owners' money? Consistently above 15-20% is considered a hallmark of top-tier companies.
Sector & Industry
Two levels of industry classification: sector is broad (e.g., Technology), industry is narrow (e.g., Semiconductors). Many strategies watch industry strength, because strong stocks are almost always found in strong industries.
Stage (Weinstein Stages 1-4)
Stan Weinstein divides every price chart into four stages: Stage 1 = basing (sideways after a downtrend), Stage 2 = uptrend (the only buying stage), Stage 3 = topping, Stage 4 = downtrend (avoid, or short candidate). Measured against the 30-week line (150-day moving average) and its slope.
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Rating (traffic light)

Stage

Funda Rating

Piotroski

Columns

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Extra columns

Tip: clicking a column header sorts the table by that column; a second click flips the direction.

Joel Greenblatt: Magic Formula
Symbol Earnings Avg/Y 3Y Volatility Stage Funda Rating Piotroski MktCap Industry AI Rating Deep Dive Deep-Dive Report Bankruptcy Check Sector Price YTD 6 Mo. 1 Year Off High Price Target RS EPS Rating ADR 10D ADR 30D Beta P/E P/E (f) P/S P/B P/FCF PEG EV/EBITDA EBIT Margin Gross Margin Net Margin ROE ROA Debt/Eq Equity Ratio Sales +/Y Growth Score Div. Yield Payout Ratio Altman Z Inst. % Short % Analysts
MU Micron Technology Inc +511 % 81 % Stage 2 A 91 6 of 9 1,269.8 $ Semiconductors Sells AI 0/3 Technology 977.50 $ +268.7 % +299.8 % +512.0 % −3.3 % +63.1 % 99 96 10.6 % 9.5 % 2.22 20.7 6.3 21.8 10.3 32.4 0.14 15.8 80.4 % 72.6 % 55.9 % 39.8 % 34.9 % 0.06 75.1 % +48.9 % 7 0.1 % 1.2 % 11.7 81.6 % 2.6 % 4.5 (37)
SNDK Sandisk Corp 08/13 ⚠ Wildest 10% 115 % Stage 2 A 90 7 of 9 276.8 $ Computer Hardware Uses AI 0/3 Technology 1,614.40 $ +727.2 % +719.9 % +1,618.0 % −0.8 % +38.8 % 99 96 10.9 % 9.6 % 55.8 7.2 13.7 17.5 24.1 17.7 70.0 % 71.5 % 56.5 % 39.3 % 43.9 % 0.02 80.7 % +10.4 % 9 0.0 % 0.0 % 13.0 80.8 % 6.4 % 3.8 (12)
WDC Western Digital Corporation 07/29 +752 % 80 % Stage 2 A 85 6 of 9 159.6 $ Computer Hardware Uses AI 0/3 Technology 423.90 $ +289.6 % +263.3 % +320.7 % −15.6 % +61.4 % 99 95 11.5 % 8.3 % 2.18 22.4 21.6 12.4 13.3 45.5 0.85 15.4 37.0 % 48.9 % 73.0 % 85.9 % 20.8 % 0.32 64.3 % +50.7 % 7 0.1 % 5.5 % 10.8 101.2 % 6.2 % 4.5 (25)
LRCX Lam Research Corp 07/29 +176 % 64 % Stage 2 A 76 8 of 9 371.4 $ Semiconductor Equipment & Materials Uses AI 0/3 Technology 269.30 $ +117.3 % +132.2 % +122.2 % −1.9 % +37.7 % 96 75 7.4 % 6.9 % 1.86 47.0 32.3 16.0 29.5 67.2 1.39 41.9 35.0 % 50.5 % 31.3 % 66.8 % 22.8 % 0.35 50.9 % +23.7 % 8 0.4 % 19.1 % 14.5 88.1 % 2.5 % 4.3 (33)
CRDO Credo Technology Group Holding Ltd 09/02 +487 % ⚠ Wildest 10% 96 % Stage 2 A 85 7 of 9 31.3 $ Semiconductors Sells AI 0/3 Technology 168.30 $ +89.0 % +63.6 % -1.8 % −13.2 % +74.9 % 96 93 10.5 % 11.3 % 3.23 64.2 23.9 19.7 14.4 71.4 49.5 35.7 % 67.1 % 33.8 % 34.4 % 16.1 % 0.01 89.9 % +205.7 % 9 0.0 % 0.0 % 19.7 75.9 % 4.0 % 4.6 (13)
KLAC KLA Corporation 07/30 +150 % 61 % Stage 2 B 69 6 of 9 220.8 $ Semiconductor Equipment & Materials Uses AI 0/3 Technology 169.00 $ +101.7 % +118.6 % +71.6 % −89.4 % +39.1 % 94 60 7.6 % 6.9 % 1.44 46.0 33.4 16.3 37.9 58.6 1.73 37.8 41.2 % 61.3 % 35.6 % 95.0 % 20.8 % 1.52 34.6 % +23.9 % 6 0.5 % 22.3 % 9.6 93.8 % 2.5 % 4.1 (30)
TGTX TG Therapeutics Inc 08/03 +43 % 45 % Stage 2 B 65 5 of 9 8.7 $ Biotechnology Neutral 0/3 Healthcare 56.50 $ +80.9 % +79.3 % +76.3 % −6.5 % +23.4 % 90 92 5.0 % 4.8 % 1.66 20.3 24.6 10.9 15.2 498.6 1.61 59.7 17.0 % 82.4 % 55.2 % 112.6 % 7.3 % 1.29 38.1 % +87.3 % 6 0.0 % 0.0 % 6.2 70.2 % 28.5 % 4.3 (9)
MSGE Madison Square Garden Entertainment Corp. 08/12 +45 % 31 % Stage 2 B 60 6 of 9 3.6 $ Entertainment Neutral 0/3 Communication Services 77.20 $ +41.8 % +48.6 % +71.9 % −0.6 % +18.7 % 86 18 4.0 % 3.0 % 0.56 73.9 27.7 3.2 78.8 10.5 23.2 10.3 % 47.3 % 6.2 % 170.3 % 5.8 % 0.08 53.2 % -1.7 % 4 0.0 % 0.0 % 4.1 102.1 % 3.5 % 4.4 (9)
AUPH Aurinia Pharmaceuticals Inc 07/30 +31 % 42 % Stage 2 A 76 6 of 9 2.1 $ Biotechnology Neutral 0/3 Healthcare 17.00 $ +12.1 % +3.2 % +37.9 % −8.8 % +5.0 % 83 79 5.6 % 4.2 % 1.41 8.1 11.6 6.8 4.0 12.3 9.6 53.3 % 77.9 % 100.8 % 65.0 % 15.5 % 0.12 78.4 % +20.4 % 7 0.0 % 0.0 % 9.2 60.3 % 7.5 % 4.3 (6)
GOOGL Alphabet Inc Class A 07/22 +62 % 31 % Stage 2 B 73 6 of 9 4,238.0 $ Internet Content & Information Sells AI 0/3 Communication Services 347.30 $ +10.7 % +12.7 % +39.6 % −15.9 % +24.1 % 79 83 3.8 % 3.1 % 1.23 26.1 22.0 9.5 8.9 79.6 1.21 12.3 36.1 % 60.9 % 54.8 % 38.9 % 13.0 % 0.22 68.0 % +15.1 % 7 0.3 % 4.3 % 10.1 80.8 % 1.3 % 4.4 (68)
GOOG Alphabet Inc Class C 07/22 +61 % 31 % Stage 2 B 73 6 of 9 4,226.7 $ Internet Content & Information Sells AI 0/3 Communication Services 343.70 $ +10.4 % +11.4 % +37.9 % −15.4 % +23.7 % 79 83 3.6 % 3.1 % 1.23 25.7 21.8 9.5 8.6 79.3 1.20 12.3 36.1 % 60.9 % 54.8 % 38.9 % 13.0 % 0.22 68.0 % +15.1 % 7 0.3 % 4.3 % 10.1 61.1 % 0.3 % 4.4 (68)
LLY Eli Lilly and Company 08/06 +49 % 36 % Stage 2 A 81 8 of 9 1,027.6 $ Drug Manufacturers - General Uses AI 0/3 Healthcare 1,152.40 $ +3.4 % +14.6 % +52.6 % −4.7 % +16.1 % 72 89 3.1 % 3.3 % 0.50 44.4 23.6 12.9 33.3 44.7 1.10 24.9 49.4 % 83.4 % 33.5 % 107.5 % 20.4 % 1.73 26.8 % +44.7 % 8 0.6 % 21.2 % 7.3 85.4 % 0.9 % 4.3 (31)
EXEL Exelixis Inc 07/27 +53 % 37 % Stage 2 B 71 8 of 9 14.7 $ Biotechnology Neutral 0/3 Healthcare 58.50 $ +17.1 % +16.7 % +44.6 % −1.3 % -5.5 % 69 76 3.3 % 3.1 % 0.42 20.2 13.1 6.0 7.7 12.5 2.27 13.0 41.2 % 96.5 % 35.3 % 41.0 % 24.0 % 0.09 74.6 % +7.0 % 8 0.0 % 0.0 % 10.7 107.5 % 15.8 % 3.9 (20)
KEX Kirby Corporation 07/30 +30 % 29 % Stage 2 B 56 6 of 9 7.4 $ Marine Shipping Neutral 0/3 Industrials 138.40 $ +25.5 % +24.0 % +67.5 % −12.1 % +20.1 % 68 60 2.2 % 2.4 % 0.87 20.9 16.4 2.1 2.2 13.5 2.63 10.8 13.3 % 33.2 % 10.2 % 10.7 % 5.1 % 5,889.4 % +3.0 % 5 0.0 % 0.0 % 103.0 % 4.3 % 5.0 (5)
AAPL Apple Inc 07/30 +20 % 25 % Stage 2 B 67 8 of 9 4,949.6 $ Consumer Electronics Uses AI ⚠ 1/3 Technology 337.00 $ +8.5 % +3.1 % +41.5 % −13.3 % -1.7 % 65 67 2.9 % 2.5 % 1.09 41.9 34.7 10.6 46.3 36.2 2.67 29.1 32.3 % 48.7 % 27.6 % 141.5 % 27.1 % 0.80 28.7 % +6.4 % 6 0.3 % 12.2 % 6.6 65.8 % 1.0 % 4.0 (48)
NVDA NVIDIA Corporation 08/26 +125 % 38 % Stage 2 A 84 7 of 9 5,540.3 $ Semiconductors Sells AI 0/3 Technology 219.30 $ +7.4 % +3.5 % +29.1 % −17.3 % +54.2 % 62 91 3.2 % 3.6 % 2.22 30.4 24.0 18.3 24.6 42.7 0.46 22.4 65.6 % 74.7 % 63.7 % 114.3 % 53.6 % 0.07 75.3 % +65.5 % 8 0.5 % 7.4 % 16.4 70.9 % 1.3 % 4.5 (63)
FAST Fastenal Company 07/14 +24 % 26 % Stage 2 B 64 8 of 9 56.8 $ Industrial Distribution 0/3 Industrials 49.20 $ +14.9 % +14.6 % +6.0 % −7.3 % -0.3 % 41 61 2.4 % 2.2 % 0.71 44.0 36.4 6.5 14.3 49.1 3.29 29.1 20.3 % 44.7 % 15.5 % 33.8 % 21.5 % 0.11 76.6 % +8.7 % 6 1.9 % 81.4 % 14.9 88.2 % 3.5 % 3.2 (16)
DECK Deckers Outdoor Corporation 07/23 +8 % 45 % Stage 1 B 57 4 of 9 11.1 $ Footwear & Accessories Uses AI 0/3 Consumer Cyclical 79.70 $ +0.0 % +0.3 % -32.8 % −18.9 % +54.4 % 34 29 4.1 % 3.9 % 1.15 12.0 10.7 2.0 4.6 9.2 0.99 7.1 14.0 % 57.8 % 18.4 % 40.9 % 20.3 % 0.15 67.8 % +9.4 % 6 0.0 % 0.0 % 13.5 100.8 % 7.4 % 3.8 (24)
TPL Texas Pacific Land Corporation 08/05 +58 % 49 % Stage 1 B 71 4 of 9 23.4 $ Oil & Gas E&P 0/3 Energy 347.20 $ +29.1 % +42.3 % +14.8 % −64.0 % +27.1 % 33 64 4.4 % 4.4 % 0.62 47.7 37.7 26.0 15.4 42.6 7.33 33.1 77.2 % 93.3 % 60.3 % 36.5 % 25.8 % 0.01 88.8 % +13.1 % 7 0.7 % 20.5 % 18.4 74.9 % 9.8 % 3.0 (2)
ACAD ACADIA Pharmaceuticals Inc 08/05 -3 % 38 % Stage 1 B 58 5 of 9 4.6 $ Biotechnology Uses AI 0/3 Healthcare 27.50 $ -15.4 % -9.6 % +13.4 % −16.3 % +23.6 % 32 6 4.6 % 3.5 % 0.86 13.2 26.5 4.0 4.0 31.6 50.86 37.9 -1.7 % 62.1 % 33.4 % 37.3 % 3.6 % 0.04 77.8 % +11.9 % 6 0.0 % 0.0 % 7.0 99.1 % 8.9 % 4.0 (20)
APP Applovin Corp 08/05 +632 % 76 % Stage 4 A 78 9 of 9 108.6 $ Advertising Agencies 0/3 Communication Services 321.60 $ -30.7 % -31.4 % -47.0 % −40.2 % +51.4 % 31 87 6.5 % 6.6 % 2.49 28.8 15.9 15.9 47.0 24.1 0.70 19.6 78.1 % 88.5 % 64.6 % 266.4 % 46.5 % 4.18 30.7 % +70.0 % 10 0.0 % 0.0 % 11.6 75.0 % 3.6 % 4.3 (26)
IDXX IDEXX Laboratories Inc 08/03 +4 % 32 % Stage 4 B 67 7 of 9 40.3 $ Diagnostics & Research 0/3 Healthcare 506.50 $ -20.0 % -22.1 % -20.5 % −27.9 % +36.1 % 23 63 3.3 % 3.0 % 1.54 37.7 30.8 8.8 25.9 32.2 2.79 25.4 31.8 % 62.5 % 25.0 % 72.9 % 27.1 % 0.97 46.0 % +10.4 % 6 0.0 % 0.0 % 13.7 96.2 % 3.0 % 3.6 (13)
MANH Manhattan Associates Inc 07/28 -10 % 47 % Stage 4 C 52 5 of 9 12.3 $ Software - Application 0/3 Technology 210.80 $ -24.9 % -21.2 % -1.9 % −48.3 % +2.7 % 13 30 4.8 % 4.7 % 0.95 61.2 40.3 11.0 63.1 30.9 2.57 42.2 23.0 % 55.8 % 18.7 % 96.2 % 24.5 % 0.39 27.7 % +3.8 % 6 0.0 % 0.0 % 7.8 113.3 % 6.2 % 4.2 (10)
PLTR Palantir Technologies Inc. 08/03 +244 % 59 % Stage 4 A 84 8 of 9 432.5 $ Software - Infrastructure Sells AI 0/3 Technology 176.20 $ -34.3 % -40.4 % +4.7 % −48.3 % +13.4 % 10 93 5.3 % 4.9 % 1.62 199.0 74.6 70.3 50.3 128.8 1.61 147.5 46.2 % 84.8 % 49.0 % 32.6 % 17.3 % 0.03 82.9 % +56.2 % 8 0.0 % 0.0 % 14.6 62.4 % 3.0 % 2.9 (25)
ADMA ADMA Biologics Inc 08/05 +42 % 55 % Stage 4 B 65 7 of 9 2.1 $ Biotechnology 0/3 Healthcare 9.00 $ -52.4 % -57.2 % -42.5 % −57.4 % +88.9 % 4 14 4.2 % 4.0 % 0.77 13.4 9.0 4.1 5.4 17.9 8.9 -123.4 % 64.7 % 33.0 % 43.3 % 21.8 % 0.52 58.7 % +19.6 % 6 0.0 % 0.0 % 10.6 94.0 % 13.1 % 4.3 (3)
DMLP Dorchester Minerals LP 24 % A 77 4 of 9 1.5 $ Oil & Gas E&P 0/3 Energy 29.80 $ +21.6 % +9.1 % +31.1 % −5.6 % 0.52 17.0 20.8 7.6 4.7 9.3 0.83 8.7 55.1 % 92.9 % 45.3 % 28.0 % 17.1 % 0.00 100.2 % -5.4 % 6 10.8 % 1.8 % 26.3 % 1.0 %
SBR Sabine Royalty Trust 24 % C 54 5 of 9 1.1 $ Oil & Gas Midstream 0/3 Energy 73.50 $ +5.9 % +4.1 % +1.1 % −11.5 % -56.6 % 0.23 15.0 10.4 14.3 127.7 1.35 15.1 91.4 % 100.0 % 94.7 % 83.3 % 507.1 % 0.00 89.6 % -6.7 % 6 6.1 % 38.5 % 18.8 % 0.2 %
NNNN Anbio Biotechnology ⚠ Wildest 10% 141 % B 68 4 of 9 0.2 $ Medical Instruments & Supplies 0/3 Healthcare 5.60 $ -65.6 % -55.5 % -87.2 % −80.1 % 37.2 0.0 8.0 47.2 59.1 % 87.2 % 74.1 % 27.1 % 14.7 % 0.00 99.7 % +5.6 % 5 0.0 % 0.0 % 4.9 % 0.1 %
MSB Mesabi Trust 47 % D 34 5 of 9 0.3 $ Steel 0/3 Basic Materials 20.00 $ -38.8 % -34.1 % -33.3 % −42.7 % +45.4 % 0.34 23.2 12.8 21.8 14.1 0.0 25.4 48.4 % 100.0 % 75.3 % 59.7 % 28.9 % 0.00 83.8 % -31.2 % 7 4.0 % 1.8 % 51.1 54.4 % 0.9 %
CGEN Compugen 69 % B 55 6 of 9 0.2 $ Biotechnology 0/3 Healthcare 2.50 $ +56.9 % +40.4 % +74.6 % −22.6 % +84.0 % 2.79 6.4 12.4 3.2 2.6 1.29 3.7 -339.6 % 86.9 % 47.6 % 50.6 % 15.5 % 0.01 65.5 % +161.1 % 7 0.0 % 0.0 % 0.6 15.3 % 2.5 % 5.0 (4)
YDDL One and One Green Technologies. Inc A 80 5 of 9 0.1 $ Waste Management 0/3 Industrials 1.50 $ -66.3 % -75.1 % −88.6 % 6.6 6.5 2.0 7.2 16.3 % 23.9 % 17.9 % 37.8 % 16.0 % 0.02 74.6 % +23.1 % 6 0.0 % 0.0 % 7.5 1.8 % 0.7 %

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Quarterly Figures

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Frequently Asked Questions

The simplified screener version of Greenblatt's "The Little Book That Beats the Market": above-average companies (return on capital ≥ 25%, approximated as ROE × equity ratio) at below-average prices (positive P/E, at least 5 to filter out data outliers). Financials and utilities are excluded as in the original, minimum market cap $50 million.

All scanners are recalculated daily across the entire stock universe — most recently on September 18, 2026. The data basis is fundamental data and SEC filings (10-K annual reports and 10-Q quarterly reports).

Currently, 31 stocks pass this scanner's criteria (as of September 18, 2026).

No global trading filters — this strategy checks the entire stock universe purely against its own criteria (mega caps over $50B included).

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Note: pure fact-based analysis, not investment advice and not a solicitation to buy or sell. All figures without guarantee.

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