This week, Zacks Equity Strategist Mayur Thaker, CFA, discusses:

• His favorite metric, ROIC (Return on Invested Capital), and an updated look at a simple screen that can reveal companies that beat the market—big time. A self-described “ROIC fanatic”, Mayur has developed a screen that uses just 3 criteria: S&P 500 membership; Top 30% in terms of change in ROIC; and Top 10% in terms of revenue growth predictability.

• This screen delivers a group of 15 stocks, and Mayur sets a rebalance frequency of 12 weeks. Backtesting this screen from 2000 – 2025 delivers some truly eye-popping results, with double the total compounded return percentage of the S&P 500.

• Mayur also backtests the screen for the years 2015 – 2025, a period that included a long bull run, the Covid crash, and the post-Covid recovery. Even with the strong S&P 500 performance in this period, the screen significantly outperformed. Don’t miss this valuable look at Mayur’s “little screen that beats the market.”

The views of Mayur Thaker, CFA are not necessarily the views of Zacks Investment Research.

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