Fundamental
S&P 500 stocks that are profitable, growing fast and reasonably priced, based on their latest published annual reports. List updated at the start of each month. Tracked live since October 12, 2026 against the S&P 500, fees included.
ⓘ How this method works
How it works. At the end of each month, we keep the S&P 500 companies that meet five criteria taken from their latest published annual accounts: return on equity (ROE) > 20%, return on assets (ROA) > 8%, earnings per share up more than 25% over one year, P/E > 15 and PEG < 1.5. Every selected stock gets the same share, reset every month.
The idea. Buy highly profitable, fast-growing companies without overpaying for that growth (a "quality + growth at a reasonable price" approach).
Weak point. The list often holds 20 to 60 stocks, and the method can lag the index for years when a few giants drive the market.
See its historical result in the Comparator → ℹ️This page is for information only and is not investment advice. It applies a fixed rule to public data. Past performance does not guarantee future results.
This month’s list
See each company's criteria
| Ticker | Company | ROE | ROA | EPS growth | P/E | PEG | Status | |
|---|
* Growth above +200%: it usually comes from very low earnings the previous year. The rule keeps it, but it rarely repeats.
Removed this month
| Ticker | Company | Sector | Reason |
|---|
How to use this list
- The backtest result assumes holding every stock on the list, in equal amounts. With only some of them, results can differ widely, either way.
- Each month, removed stocks are sold, new ones bought, and every position is reset to an equal share: no profit target, no stop. This rebalancing matters: in our historical study, 100 € invested in 2011 grows to 920 € with it, but only 669 € if positions are left to drift. Average holding time: about 10 months.
- To keep fees low, allow at least €500 per position. Turnover costs about 1 point of return a year, already included above.
- The list can be concentrated in one sector (technology, right now). Looking at the sector breakdown helps you measure that risk.
- Holding longer does not help: historically, a stock held 3 years after entering ended well behind the index. Automatically picking the lowest PEG in each sector was also tested and rejected.
What the backtest shows (2011-2026)
On the S&P 500 without survivorship bias, we audited this backtest by adding everything a Belgian investor really pays: purchase on the trading day after the decision, all costs (0.43% per purchase and per sale, including rebalancing to equal weights) and tax on dividends (15% withheld in the US + 30% Belgian withholding tax). The benchmark is a real S&P 500 UCITS ETF (iShares CSPX). Result: the rule breaks even with the ETF.
| Period | Fundamental list (audited) | S&P 500 UCITS ETF | Gap |
|---|
| 2011-2016 (research) | 13.7%/yr | 11.9%/yr | +1.8 |
| 2017-2026 (verification) | 14.1%/yr | 15.0%/yr | −0.9 |
| 2011-2026 | 14.0%/yr | 13.8%/yr | +0.2 |
Limits: the thresholds were chosen among 162 combinations on 2011-2016, and the lead comes from that period; over 2017-2026 the list does worse than the ETF. Worst drop −28.4% vs −22.7% for the ETF; up to 41 months in a row behind the ETF; 2024 and 2025 clearly behind; the 2008 crisis could not be tested. A gap of +0.2 point a year cannot be told apart from chance. The rules are frozen: only live tracking will tell whether they hold. See the full audit →
The rule
Each month, an S&P 500 stock enters the list if its latest annual report filed with the SEC shows all of: ROE (net income / equity) above 20%, ROA (net income / assets) above 8%, earnings per share growth above 25% over one year, a P/E above 15 and a PEG (P/E / growth) below 1.5. One share class per company. Rule fixed in advance and unchanged.