iQ Financial Services Model

 

 

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The Financial Services sector is a category of stocks containing firms that provide financial services to commercial and retail customers.

When the business cycle is in an upswing, the Financial Services sector benefits from additional investments. Improved economic conditions usually lead to more capital projects and increased personal investing. New projects require financing, which usually leads to a larger number of loans.

Process:

  1. Start with the largest 100 domestically-traded companies from the Financial Services sector

  2. Select the 30 companies with the highest Operating Earnings Yield and Share Buyback Ratio.

  3. Screen by Price Momentum and select the top 10.