All Strategies>Joseph Piotroski

The Piotroski Strategy

Value investing with fundamental strength for high returns.

CAGR

Compound Annual Growth Rate

Beta

Volatility Compared to S&P 500

Total Return

1-Year Avg.

3-Year Avg.

5-Year Avg.

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Investment amount

$10,000

Investment range

5 years

Total return

undefined%

Investment worth

Strategy Formulas & Filters

Formulas
Filters

Price to Sales Ratio (TTM)weight: 0.1

Calculates the Price to Sales ratio to emphasize companies with high market caps relative to their revenue.

Piotroski F-Scoreweight: 0.9

Evaluates a company’s financial strength using the Piotroski F-Score by summing multiple binary financial signals.

Trading Model

Purchase Model

Purchase 4 stocks every 3 months until portfolio size reaches 32.
Rebalance target: 50%.
Reinvest proceeds from sales every 3 months.

Selling Model

Hold the stock for a maximum of 2 years.

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Strategy Information

Piotroski investing focuses on identifying undervalued stocks with strong financial health using the Piotroski F-Score, a nine-point system that evaluates a company’s profitability, liquidity, and operational efficiency. This score helps investors distinguish fundamentally strong companies from weaker ones by assessing key metrics like return on assets, leverage, and cash flow. By targeting companies with high F-Scores (7-9), Piotroski’s strategy aims to improve returns and reduce risk, making it a valuable tool for value investors looking to capitalize on financially stable but undervalued stocks.