LST Beat the Market Stock Strategy Beats the S&P500 Again!

A Stock Selection Strategy that Outperformed the S&P500 7 of the last 8 Years, Beating the Market by 102%. Course Includes Video, eBook & Code

The LST Beat the Market Strategy has outperformed the S&P500 in 7 of the last 8 years: providing an 8-year total return of 408% beating the S&P500 by 102%.

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The Liberated Stock Trader (LST) Beat the Market Screener seeks to select stocks that have a significant chance of beating the S&P500 returns. The screener uses growth in free cash flow and explosive EPS growth.  Combining this with Joel Greenblatt’s ROC and Earnings Yield formulas, “the Magic Formula,” we have a selection of stocks that beat the market 7 of the last 8 years.

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A Unique Stock Automated Selection Strategy

LST BTM Selects 35 Stocks With A Significant Chance to Beat The Market

 ★ Stocks That Have Strong Earnings Growth ★

★ Stocks That Make Great Use Of Their Assets ★

★ Stocks With A Growing Cashflow ★

★ Stocks That Already Beat The Market ★

★ Buy The Stocks & Hold For 12 Months – Then Rotate ★

LST BTM Takes The Pain Out Of Stock Selection

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This research has been made possible due to the fabulous work done by the team over at our partner Stock Rover, who have created a stock research and screening platform that won our in-depth Best Stock Screener Review for the last two years.

Why is Stock Rover so special when it comes to creating superior stock screeners?  Because Stock Rover maintains a clean 10-year historical database of hundreds of vital ratios, calculations, and metrics.  This means you can travel back in time to test if your stock selection criteria have worked in the past.

What is Beating the Market?

To beat the market means that your stock investments will need to outperform the underlying index of stocks. In the USA, the market to beat is generally the 8% annual return of the S&P500 index. Anyone could beat the market in a single year, but outperforming the market over the long term is the key challenge.

Beating the market is the nirvana for every investor. Well, typically, it should be, but many investors realize that it can actually be tough to outperform the stock market’s returns year after year.

LST Beat the Market Strategy Background

Outperforming the S&P 500 benchmark is the goal of active fund managers, but 78% failed to achieve it over the last five years.*

“I have been inspired by the work of Joel Greenblatt and William J. O’Neil. But these strategies need something extra,” said Barry D. Moore, Founder of LiberatedStockTrader.com. “Screening for companies with increasing Cash Flow and Earnings Growth is a well-established best practice. Combined with Earnings Yield and Return on Capital, you have a foundation of financially stable growth stocks.”

“The strategy adds a new twist by selecting companies that have beaten the S&P 500 in the trailing 12 months.”

The goal was to create a simple strategy to make yearly profits that exceed the S&P500’s returns.

The LST Beat the Market strategy has successfully outperformed the S&P 500 in 7 of the last 8 years: providing a total return of 408% versus the S&P 500’s 152%.

The strategy is suitable for individual investors because it selects only 15 to 40 stocks per year.

This system has proven to be very successful in 7 of the last 8 years, but like any stock investing system, there are no guarantees of future success.

The LST Beat the Market Strategy Performance Chart.

LST Beat the Market Strategy Performance vs. S&P 500 2013 to 2021
LST Beat the Market Strategy Performance vs. S&P 500 2013 to 2021

The LST Beat the Market Strategy Performance Table.

8 Year Performance S&P500 % Gain Jan 1st to Dec 31st LST Beat the Market Screener % Gain Result
2013 29.8% 49.4% Beat
2014 11.4% 16.9% Beat
2015 -0.7% 2.6% Beat
2016 9.5% 23.2% Beat
2017 19.4% 37.4% Beat
2018 -6.2% -24.9% Lost
2019 28.9% 46.8% Beat
2020 18.4% 51.8% Beat
Average Yearly Return 13.8% 25.4% Beat

8 Year Results Based on $100,000 Invested.

S&P500 Index Returns LST Beat the Market Screener
Initial Investment  $100,000.00  $100,000.00
2013  $129,800.00  $149,400.00
2014  $144,597.20  $174,648.60
2015  $134,475.40  $179,189.46
2016  $147,250.56  $220,761.42
2017  $175,817.17  $303,326.19
2018  $164,916.50  $227,797.97
2019  $212,577.37  $334,407.42
2020 $251,961.61 $507,630.46
Cumulative 8 Year % Gain +152% +408%
LST Beat The Market By:   102%

As you can see, the S&P500 turned $100,000 into $251,961 over the last 8 years. The LST Beat the Market Screener turned $100,000 into $507,630 over the same period. This means the LST Beat the Market Screener beat the market by 102%

LST Beat the Market Stock Portfolio Allocation 2021

Stock Rover not only provides the engine to run the screening criteria but also has excellent portfolio analytics.  Here you can see the strategy has selected 35 stocks for 2021. The companies selected are heavily weighted towards Technology, Consumer Cyclical, and Healthcare.

LST Beat the Market Strategy - Portfolio Allocation Stocks 2021
LST Beat the Market Strategy – Portfolio Allocation Stocks 2021

Historical Performance Charts.

Beat the Market Strategy Performance vs. S&P500, 2020

For the year 2020, the LST screener has done very well; although only 13 stocks met the criteria, the LST screener has returned 51.8% versus the S&P500, which gained 18.4%.  This means an outperformance of 33.4%.

LST Beat the Market Screener Performance Results Chart 2020
LST Beat the Market Screener Performance Results Chart 2020

Beat the Market Strategy Performance vs. S&P500, 2019

Beat the Market Stock Screener Performance 2019
Beat the Market Stock Screener Performance 2019

In 2019 as for all the backtested results, the clock starts on January 1st and ends on December 31st.  For 2019 the LST screener returned 46.8% versus the S&P500 of 28.9%, which is a beat of 17.9%.

Beat the Market Strategy Performance vs. S&P500, 2018

Beat the Market Stock Screener Performance 2018
Beat the Market Stock Screener Performance 2018

2018 was the only year in the backtest where the LST Beat the Market Screener lost significantly to the S&P500.  While it was a losing year for both the screener and the market in general, the S&P returned -6.2% while the screener lost 24.9%.

Beat the Market Strategy Performance vs. S&P500, 2017

Beat the Market Stock Screener Performance 2017
Beat the Market Stock Screener Performance 2017

2017 was another good year for the LST screener beating the market by 17.8%. The S&P500 had a solid year returning 19.4%, while the Beat the Market Screener returned 37.4%.

Beat the Market Strategy Performance vs. S&P500, 2016

Beat the Market Stock Screener Performance 2016
Beat the Market Stock Screener Performance 2016

2016 was an average year for the market, with the S&P500 returning 9.5% while the Beat the Market Screener made a profit of 23.2%.

Beat the Market Strategy Performance vs. S&P500, 2015

Beat the Market Stock Screener Performance 2015
Beat the Market Stock Screener Performance 2015

2015 was a battle to make a profit for the system and the S&P500.  While the LST system led the S&P500 for the entire year, the S&P500 made a loss of 0.7%, while the LST BTM Screener squeezed a profit of 2.8%.

Beat the Market Strategy Performance vs. S&P500, 2014

Beat the Market Stock Screener Performance 2014
Beat the Market Stock Screener Performance 2014

Although the S&P500 was leading the LST BTM screener for most of the year, in October 2014, things turned around, and the selected stocks surged to beat the market again 16.9% vs. 11.4%.

Beat the Market Strategy Performance vs. S&P500, 2013

Beat the Market Stock Screener Performance 2013
Beat the Market Stock Screener Performance 2013

2013 was the further year back we could backtest.  The main reason for this is we use 3 years of data in the screener’s criteria, and Stock Rover maintains a 10-year historical database, thus 7 years of backtesting. 2013 saw the screener return an impressive 49.4% while the S&P500 increased by 29.6%.

Are You Ready To Choose Great Stocks?

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What Is Included in the LST Beat The Market Strategy?

★  5 Module Video Training Course

System Integrated In Stock Rover*

The LST Beat the Market eBook

All the Criteria & Logic to Implement Into Any Software

Email Support & Regular Updates on the Strategy

Lifetime access to all videos and tools

Buy Now & Don’t Forget If You Are Not Completely Happy, You Keep Lifetime Access For Free.

Just Let Me Know Within 90 Days

3 Month - Risk Free Money Back Guarantee

 

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If you have any questions on the course or issues with the payment process, please contact me directly on

 ✉ support (at) liberatedstocktrader.com.

 

Warranty

As with any stock market investing system, nothing is guaranteed to work in the future as it did in the past. In fact, the more institutions that utilize a system, the more ineffective it becomes.  So this beat the market screener, and LiberatedStockTrader.com accepts no liability for your use of this work. Liberated Stock Trader does not recommend purchasing specific stocks and accepts no liability for any losses incurred. By using this or any other published article for investing purposes, you agree to our disclaimer.

  • To use the system with Stock Rover, you will need a Stock Rover Premium Plus subscription.

To date (2021), this system has proven very effective, but there is no guarantee of future performance.

20 COMMENTS

  1. Great screener! I’m enjoying testing some variations. One that I like chooses the top 10 or 15 ranked by 50% ROE, 50% FCF yield, instead of the quality score ranking that you built in. I wish I knew how to backtest this to prior years, but it doesn’t seem possible to rank order the selections based on prior years’ metrics. Another variation that seems promising is to limit the universe to mid caps only.

  2. Hi Barry – amazing screener, I’ve enjoyed watching different companies move in and move out of the criteria. For those companies that have moved out of the screener, do you typically remove these companies from your investment portfolio in a timely manner and replace them with newer companies that now meet the criteria?
    Thanks
    Brad

    • Hi Brad, good question.
      The strategy is backtested with a rotation of stocks performed every January. Meaning buy in January and sell in December. This does not mean that February to February or March to March would not work out well, but it is not tested.
      The idea is that we buy and hold for 12 months to allow the profits to develop.
      It is also not backtested with a regular buy and sell when a stock drops off the list, but it would be interesting to see the results.

      thanks

      Barry

  3. Great article. I am getting used to StockRover (Premium Plus).
    I see that the LST Beat the Market screener is doing quite well over SPX500 and even Nasadaq100 this year.
    I believe the comparsion includes all stocks from the screener (36 now).
    But it is impractical to trade all of them.
    How do you select stocks from the screener (Value score? Margin of Safety, combination, etc?)

    Thanks!
    Eugene

  4. Hi,
    very impressive model and past performance. Can you please clarify when its required to do a rebalance? Is it similar to the Jowell Greenblatt strategy that recommends to rebalance annually?
    Thanks,
    A.S

  5. Thank you for your market screener. I have imported your screener but I am not able to duplicate your results. The YTD (as of 5/13/2020) return is 12pct, yours came up with 25pct as indicated in your article. For 2019 and 2018 there is a small difference. 2019 back testing: my scan is indicating 50.4, yours 46.8pct. 2018 back testing: my scan is indicating negative 23.4 pct. yours negative 24.9pct

    Don’t the stocks selected for this scan change day to day? If that’s the case I don’t see how I can duplicate the actual results if the stocks that were selected on January 1st of each year which I assume your calculation is based on. Also your article is indicating that the scan for 2020 came up with 13 stocks, mine is currently coming up with 19 stocks.

    Do you have any idea why our results aren’t matching?

    Thank you.

    • Hi Stewart, thanks for testing and trying it out. The only thing I can think of is that the scan might needs to have “Most US Listings Selected” as shown in this image https://www.liberatedstocktrader.com/beat-the-market-screener/#The_Criteria_Explanation_of_Logic, perhaps change it to Major US Listings and check the results.

      As for the question “The YTD (as of 5/13/2020) return is 12pct, yours came up with 25pct as indicated in your article.” and “Don’t the stocks selected for this scan change day to day? If that’s the case I don’t see how I can duplicate the actual results if the stocks that were selected on January 1st of each year which I assume your calculation is based on. ”
      You are entirely correct, the scan for this year will change because we are using current not historical data. And in fact my scan was run in early April (Final testing phase).

      I hope my answers help.

      thanks

      Barry

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